Selling Property in the U.K.? Here Is What You Need to Know About Stamp Duty Tax

House for sale signSelling property requires several conveyancing steps — submitting documents, paying taxes and duties as well as sorting other documents.

The stamp duty land tax is a form of transfer tax on the land transaction, in the form of the property sale documents. Websites such as the Stamp Calculator have an online stamp duty land tax calculator, which can compute the amount due depending on the value of the property sold.

A Place in the Process

Whether there is any amount you need to pay or not, you have to submit a return to the HM Revenue and Customs office within a specified amount of time. If the HMRC does not receive the return within the given time frame, the taxpayer will have to pay a fine.

Once the HMRC accepts the return, they release a certificate to the taxpayer, who then has to register a change in the property ownership.

The stamp duty land tax uses a graduated scale of values. There are no taxes for transactions worth up to £125,000; for transactions worth £125,001 to £250,000, 2%; from £250,001 to £925,000, 5%; from £925,001 to £1,500,000, 10%; and over £1,500,000, 12%.

For second homes, buyers will pay an additional 3% aside from the figures above. The value considerations do not need to be cash; they could also include improvements or some other civil work stated in the document, which could increase the worth of the property in terms of stamp duty.


There are special rates for other types of purchases. These categories include properties bought by corporations, purchases made by individuals involving six or more properties in a single transaction, or multiple purchases and transfers between the same set of buyer and seller — collectively called linked purchases. The stamp duty could have some tax relief for these circumstances.

Posted on by George Cummins in Money Times

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