Who pays stamp duty?Stamp Duty Land Tax (SDLT) in England and Northern Ireland is paid by the buyer, not the seller. The same applies to Land and Buildings Transaction Tax (LBTT) in Scotland, and Land Transaction Tax (LTT) in Wales. The duty is calculated on the purchase price and must be paid within 14 days of completing the purchase. The buyer always pays stamp duty — not the seller. Your solicitor or conveyancer will handle the calculation and payment on your behalf at completion. How does stamp duty work in England?In England, Stamp Duty Land Tax (SDLT) is charged on residential property purchases above £125,000 for standard buyers (rising to £300,000 for first-time buyers). It is calculated in bands — you pay different rates on different portions of the purchase price, not a flat rate on the whole amount.
Note: First-time buyer relief applies on purchases up to £500,000. On purchases above £500,000, standard rates apply from £0. Additional stamp duty for second homesSince November 2024, buyers purchasing a second home or buy-to-let property pay an additional 5 percentage points on top of the standard rates. This surcharge applies to the entire purchase price from £0.
Who pays stamp duty in Scotland and Wales?
When and how is stamp duty paid?Your solicitor or conveyancer calculates the amount due and submits a stamp duty return to HMRC within 14 days of completion. They will collect the payment from you as part of the completion funds (alongside the purchase price). You don't typically pay HMRC directly — your conveyancer handles it. Can stamp duty be added to the mortgage?Most lenders will not allow stamp duty to be added to a residential mortgage. It must be paid upfront from your own funds at completion. Some lenders allow it for certain buy-to-let or commercial products — check with your broker. Verdict The buyer pays Stamp duty is always paid by the buyer, handled by your solicitor at completion. Factor it into your budget early — on a £350,000 home, a standard buyer pays £7,500; a second-home buyer pays £25,000. Frequently asked questionsDoes the seller pay any stamp duty? No. Stamp duty is solely the buyer's responsibility. Sellers may pay Capital Gains Tax if the property is not their main home, but stamp duty is always on the buyer. What is the stamp duty deadline? You must submit the SDLT return and pay any tax due within 14 days of completing your property purchase. Your solicitor normally handles this automatically. Do you pay stamp duty on a new build? Yes — new builds are subject to the same stamp duty rules as any other residential purchase. Some developers offer to pay a buyer's stamp duty as a purchase incentive. Is there stamp duty on shared ownership? On a shared ownership purchase you can choose to pay stamp duty on the full market value upfront (recommended, to avoid future charges on staircasing) or only on the initial share purchased. |
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