Why is it called stamp duty?
‘Stamp duty’ refers to the completion stamp historically placed on documents after the tax was paid. Nowadays, stamp duty is paid online or through a direct bank transfer, cutting out the need to provide a stamp as proof of your dutiful payment. Like most legal terms from previous centuries, the name just stuck.
Do I need to pay stamp duty on a new home?
If you owe stamp duty, you need to pay it. If you fail to pay the tax on time, you could be slapped with a penalty charge that puts you far more out of pocket than the original levy did - as with most cases of tax evasion!
Not all homebuyers owe stamp duty on their purchase, however.
In the UK, some exceptions include:
First Time Buyers: First-time buyers have a higher tax threshold than homebuyers already on the property ladder. If your first home is worth less than £300,000, you won’t have to pay stamp duty on the purchase. For properties under £500,000, your tax rate is a lower-than-standard 5% of the value over £300,000.
Below-Threshold Purchases: As of April 2025, properties worth less than £125,000 will be exempt from stamp duty. If your home is only slightly above £125,000, you may be able to haggle the house price down to stay below the threshold.
Non-Purchases: If you didn’t purchase your home but acquired it through other means such as will execution or a divorce, the transfer is not considered a purchase under stamp duty rules.
When is stamp duty due?
You’ll need to pay the stamp duty you owe within 14 days of completing on your house. If you have a solicitor, you can ask if they’ll file your return for you as part of the house purchase. Otherwise, you can file it yourself online.
How much is stamp duty in England?
Like most taxes, stamp duty changes from time to time. The most recent change occurred in April 2025 when we received the current rate of tax applied to home purchases. You can expect the following stamp duty rates when buying a house in England in 2025:
|
House Value |
Stamp Duty Rate |
|
Under £125,000 |
0% |
|
£125,001 - £250,000 |
2% |
|
£250,001 - £925,000 |
5% |
|
£925,001 - £1.5 million |
10% |
|
All excess over £1.5 million |
12% |
Examples of stamp duty rates in England
Like all taxes, stamp duty is calculated as a percentage of a threshold rather than of the full value. Instead of paying 5% on a £300,000 home, for instance, your tax would be calculated as 2% of £125,000 and 5% of £50,000 added together, resulting in a total tax rate of £5,000.
To help you work out exactly how much stamp duty you need to pay, there are calculators available online. We’d recommend giving the Government Stamp Duty Calculator a try.
|
House Value |
Tax Total |
|
£200,000 |
£1,500 |
|
£300,000 |
£5,000 |
|
£600,000 |
£20,000 |
|
£1,200,000 |
£63,750 |
|
£2,000,000 |
£153,750 |