Stamp duty is a tax that homebuyers might have to pay when purchasing a property. It is charged on the written documents that transfer ownership of land and buildings. Stamp duty applies to residential property such as houses, apartments, or sites with an agreement to build. It also applies to non-residential property, such as land or housing sites without residential buildings. The following are key points to know about stamp duty on a house in the United Kingdom:

• Who pays stamp duty? Anyone buying a residential or commercial property, including leasehold homes, buy-to-let and second homes, and plots of land, over a certain price, has to pay stamp duty.

• How much stamp duty do you have to pay? Stamp duty rates vary according to the value of the property you’re buying and whether you’re a first-time buyer. The stamp duty starting rate kicks in at £125,001, meaning any properties priced under that amount are exempt from the tax. First-time buyers are also exempt from paying stamp duty on the first £300,000 of a main residential property. The threshold for non-first-time buyers is £125,000. Stamp duty is charged on a progressive sliding scale, rather than as a slab structure.

• Stamp duty rates: The stamp duty rates (excluding the special rules) are as follows:

  • 2% on homes worth between £125,001 and £250,000
  • 5% on homes from £250,001 to £925,000
  • 10% on homes from £925,001 to £1.5 million
  • 12% on homes over £1.5 million

• Stamp duty on second homes: Buyers of buy-to-let properties and second homes priced over £40,000 have to pay a 3% surcharge. This additional tax is on top of the standard rates.

• Stamp duty in Scotland and Wales: Scotland and Wales have their own versions of property tax, which are similar to stamp duty.

• Stamp duty in the United States: In the United States, a stamp duty is a tax that governments place on legal documents, usually involving the transfer of real estate or other assets.