LEEDS OFFICE 
Trading as Avery Walters Ellis Solicitors 
 
HARROGATE OFFICE 
Trading as Powell Eddison Solicitors 
 
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If you are buying a home in England costing more than £125,000 you will have to pay Stamp Duty Land Tax (SDLT) on your residential property purchase. You will also be liable to pay Stamp Duty when you purchase a second home over £40,000. If you are buying a property in Wales, you will pay Land Transaction Tax (LTT). 
 
SDLT is a transfer tax and was introduced for land and property transactions from 1st December 2003. SDLT is a self-assessed transfer tax charged on ‘Land transactions.’ This tax applies to both freehold and leasehold properties, whether you are buying outright or with a mortgage. 
 
How Much is Stamp Duty? 
 
There are several rate bands for Stamp Duty. The tax is calculated on the part of the property purchase price falling within each band. 
Minimum Property Purchase Price 
Maximum property purchase price 
Stamp Duty rate* 
£0 
£125,000 
0% 
£125,001 
£250,000 
2% 
£250,001 
£925,000 
5% 
£925,001 
£1.5 million 
10% 
Over £1.5 million 
 
12% 
* only applies only to the part of the property price falling within each band. 
 
Additional Properties 
 
Buyers of additional residential properties, such as second homes and buy-to-let properties, will have to pay an extra 3% in Stamp Duty on top of current rates for each band. This increased rate applies to properties bought for £40,000 or more. 
 
If you buy a new main residence but there’s a delay in selling your previous main residence, you’ll have to pay the higher Stamp Duty rates as you’ll own two properties. However, if you sell or give away your previous main home within 3 years of buying your new home you can apply for a refund of the higher SDLT rate part of your Stamp Duty bill. 
 
First Time Buyers 
 
The budget in 2017 abolished Stamp Duty for first-time buyers in England and Wales purchasing homes up to £300,000. 
 
The Government defines first-time buyers as ‘…an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intend to occupy the property as their main residence.’ 
 
You have 14 days to file a Stamp Duty Land Tax return and pay any SDLT due. If you don’t submit a return and pay the tax within this time, HMRC might charge you penalties and interest. 
 
Usually your solicitor will deal with the Stamp Duty return and any payment due for you, although you can do it yourself, you as the taxpayer are responsible for making sure it’s all submitted on time. 
 
Contact our team on 0113 2007480. 
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