What is stamp duty and who has to pay it?

Answer

Stamp Duty Land Tax (SDLT) is a tax that you pay to HM Revenue & Customs when you buy a property or land over a certain price in England and Northern Ireland. The person buying the property is responsible for paying the stamp duty. 

Stamp duty, officially known as Stamp Duty Land Tax, is a tax levied by HM Revenue & Customs when purchasing a home. The amount of stamp duty paid depends on factors such as the property's location, purchase price, and whether it's the buyer's only property. Properties valued below £40,000 are exempt from stamp duty.

The responsibility for paying stamp duty falls on the buyer, not the seller. Typically, the buyer's solicitor handles the payment as part of the purchase process. In England and Northern Ireland, stamp duty exemptions apply, with no tax on the first £250,000 of a property's value (increased to £425,000 for first-time buyers). However, for additional properties, buyers incur a 3% tax at the lowest band, with higher rates for values above this threshold.

It’s worth mentioning that the government can change the Stamp Duty rates and often do, so it is a good idea to check the current rates when purchasing a property on the Gov.UK website.