Stamp Duty Land Tax

What is stamp duty?

Stamp Duty Land Tax (SDLT) is a tax paid on all property purchases over a certain value in the UK. 

What do I need to know? 

In October 2022, the Government introduced the Stamp Duty Land Tax Bill explaining the main changes to stamp duty land tax and how they will be implemented.

The amount of SDLT you’ll need to pay depends on these factors:

• The price of the property you are buying – rates of SDLT are graded based on the price of a property so that more expensive properties pay higher tax rates
• Whether you're a first-time buyer 

First-Time Buyers

If you (and anyone else you’re buying with) are a first-time buyer, you may be able to claim a discount on your SDLT. This means you’ll pay: 

Example

You're a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as follows:

0% on the first £425,000 = £0 
5% on the remaining £75,000 = £3,750 
Total SDLT = £3,750

Non First-Time Buyers

If you aren’t a first-time buyer, the following SDLT rates will apply: 

Source: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

Example 

You purchase a property for £500,000. The SDLT you owe will be calculated as follows: 

0% on the first £250,000 = £0 
5% on the remaining £250,000 = £12,500 
Total SDLT = £12,500 

Looking for a new home?

Southern Housing New Homes offer a variety of well-designed and contemporary new homes for sale with Shared Ownership and Open Market Sale across London and the South East. 

We're dedicated to ensuring first-time buyers don’t compromise on quality, location or price. With homes to suit every family size and budget, you can pick something perfect for you and your future. Whether you're a young professional looking for your first London apartment, or a family searching for the perfect countryside community, take a look at what we can offer you on our properties page.