Stamp Duty (in full, Stamp Duty Land Tax, or SDLT) is a tax you may have to pay when you buy a property or land over a certain price in England and Northern Ireland. It's one of the significant extra costs of buying a home, on top of the deposit.
Stamp Duty is charged on the purchase price above a threshold, and it works in bands — different portions of the price are taxed at different rates, rather than one flat rate on the whole amount. This means the more expensive the property, the more Stamp Duty tends to be due. The rates, thresholds and bands are set by the government and change from time to time, so you must check the current rates rather than relying on old figures.
First-time buyers often benefit from a relief that reduces or removes Stamp Duty up to a certain property value — a helpful saving when buying your first home. As with everything here, the thresholds and rules change, so check whether you qualify and what the current limits are.
Scotland and Wales have their own equivalent taxes (Land and Buildings Transaction Tax and Land Transaction Tax) with different rates. Because rates and rules change and depend on your circumstances, always check the current position on GOV.UK and consider professional advice. Our free home buying costs checklist and first-time buyer guide help you budget. This is general information, not financial or tax advice.