What is stamp duty?
Stamp duty is a tax that is paid when you buy property in the UK. It is a tax on the document that transfers ownership of the property, hence the name. The amount of stamp duty you pay depends on the value of the property.
In Wales stamp duty is known as the Land Transaction Tax (LTT) and in Scotland the Land and Buildings Transaction Tax (LBTT).
Stamp duty was first introduced in the UK in 1694. It was originally a tax on the transfer of land, but it was later extended to include property. The current system of stamp duty was introduced in 2003. Stamp duty land tax (SDLT): This is the most common type of stamp duty. It is paid on the purchase of most properties in England and Northern Ireland.
The amount of SDLT you pay depends on the status of the buyer, the value of the property and the type of property. For example, if you buy a property worth £250,000, you will pay £5,000 in SDLT. If you buy a property worth £500,000, you could pay £15,000 in SDLT.
You can find out more about stamp duty on the government’s website: https://www.gov.uk/stamp-duty-land-tax
Are stamp duty calculators accurate?
Stamp duty calculators are a good guide to help you estimate how much you are likely to pay to purchase a property. They are more suitable for standard properties and transactions, but they are not designed to encompass the different aspects of a property which can change the amount due. The actual amount of stamp duty payable is determined by your solicitor. They will require specialist tax advice in order to file an amended stamp duty return, unless they are familiar with the complexities of the tax system.
If you wanted an estimate of the stamp duty on your next purchase. Try our calculator.
Factors which can impact stamp duty
This table is for information purposes only. It provides information on how the same transaction can attract different a different stamp duty liability.
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The information provided on this website is for educational purposes only. Orton Financial is not responsible for the accuracy, completeness, or timeliness of the information provided. This information should not be used as a substitute for professional financial advice