What is stamp duty?
Stamp duty is a tax that you need to pay when you buy a property in England or Northern Ireland. In Scotland, it’s known as Land and Buildings Transaction Tax, and in Wales it’s called Land Transaction Tax with rates set locally. The amount of stamp duty you pay is calculated using the purchase price of a property, not the amount you’re borrowing through a mortgage.

What is a stamp duty threshold?
Stamp duty thresholds are simply the limits to when and which charges apply. If you buy a property for less than the base threshold, you won’t pay any stamp duty, whereas if the property you’re buying exceeds other thresholds, you’ll need to pay more.

How much is stamp duty now?
Here's how much stamp duty you'll pay, depending on the value of the property you're buying:

• Nothing on the first £250,000
• 5% between £250,001-£925,000
• 10% between £925,001 and £1.5 million
• 12% above £1.5 million

First-time buyers are exempt from stamp duty on home purchases up to £425,000 in England and Northern Ireland. They’ll pay 5% stamp duty on the portion of the property price from £425,001 to £625,000.

When does stamp duty apply?
Ordinarily, you should expect to pay stamp duty on all property purchases, including leasehold properties, shared ownership properties and purchases that don’t involve a mortgage. So when buying a home, you need to consider whether you’ll be able to afford the stamp duty on top of all the other costs involved.

Are there any exemptions?
There’s only a few exemptions to the need to pay stamp duty, and these include:

• When a portion of a home is transferred to a spouse or partner following a separation or divorce.
• When you transfer the deeds of your home to another person as a gift.
• If you fall into the first-time buyer category and are buying a home for up to £425,000.

For more information: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates