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What is Stamp Duty / LBTT?

In this section:

Stamp Duty and LBTT explained 

What is Stamp Duty or LBTT?
When you buy a home, you may need to pay a Government property tax depending on where you live and the value of your new home.

  • In England and Northern Ireland, this tax is called Stamp Duty Land Tax (SDLT).
  • In Scotland, it’s known as Land and Buildings Transaction Tax (LBTT).

Your solicitor usually handles this payment as part of the completion process.

Who pays it?
Anyone who purchases a new or pre-owned property in the UK – whether you’re an existing homeowner or you’re buying for the first time – which is priced within a certain threshold, is liable to pay the tax. Otherwise, there’s no tax to pay.

How much is it?
In England, the Stamp Duty threshold is £125,000 or £300,000 for first-time buyers. The LBTT threshold for properties in Scotland is £145,000 or £175,000 for those buying for the first time. That means if you’re buying a home priced above these thresholds, you will need to pay tax.

How is it paid?
Normally, your conveyancing solicitor will calculate and pay your Stamp Duty or LBTT on your behalf on the day of completion, however there is the option to do this yourself if you prefer. In England this needs to be done within 14 days of completion and in Scotland, 30 days.

What's changing from April 2025?
From 1 April 2025, Stamp Duty thresholds in England will revert to their previous levels, following the end of the Government’s temporary changes introduced in 2022.

 

Stamp Duty rates in England

Property value

Stamp Duty rate

Existing homeowners

Up to £125,000

0%

The next £125,000 (the portion from £125,001 to £250,000)

2%

 

The next £675,000 (the portion from £250,001 to £925,000)

5%

The next £575,000 (the portion from £925,001 to £1.5 million) 

10%

The remaining amount (the portion above £1.5 million) 

12%

Example:

You buy a house for £295,000. The Stamp Duty you owe is calculated as follows:

0% on the first £125,000 = £0

2% on the second £125,000 = £2,500

5% on the final £45,000 = £2,250

Total Stamp Duty payable = £4,750

First-time buyers

Up to £300,000

0%

The portion from £300,001 to £500,000

5%

Example:

You purchase your first home for £500,000. The Stamp Duty you owe is calculated as follows:

0% on the first £300,000 = £0

5% on the remaining £200,000 = £10,000

Total Stamp Duty payable = £10,000


Thresholds and rates sourced from www.gov.uk

LBTT rates in Scotland

LBTT rates in Scotland

 

Property value

LBTT rate

Existing homeowners

Up to £145,000 

0%

£145,001 to £250,000    

2%

£250,001 to £325,000    

5%

£325,001 to £750,000    

10%

Over £750,000   

12%

Example:

You buy a house for £300,000. The LBTT you owe is calculated as follows:

0% on the first £145,000 = £0

2% on the next £105,000 = £2,100

5% on the next £50,000 = £2,500

Total LBTT payable = £4,600

First-time buyers

Up to £175,000 

0%

£175,000 to £250,000

2%

£250,001 to £325,000

5%

£325,001 to £750,000

10%

Over £750,000

12%

Example:

You purchase your first home for £350,000. The LBTT you owe is calculated as follows:

0% on the first £175,000 = £0

2% on the next £75,000 = £1,500

5% on the next £75,000 = £3,750

10% on the next £25,000 = £2,500

Total LBTT payable = £7,750


Thresholds and rates sourced from www.revenue.scot

Try our Stamp Duty/LBTT Calculator

Stamp Duty/LBTT Calculator

Stamp duty/LBTT to pay:

Get help towards Stamp Duty / LBTT costs when you buy new with us!

As a thank you for purchasing a brand-new Places for People home, we’ll make a contribution towards your Stamp Duty or LBTT costs. Because if we can help to make the journey into your dream home even easier, we will.

A helping hand with our Stamp Duty / LBTT Contribution offer

Buying a home is an exciting time but the costs can soon start to mount up. That’s why we’ve decided to ease some of the burden, by making a contribution towards your Stamp Duty or LBTT payment – a housewarming gift from us!

Hopefully, with fewer moving costs to budget for, you’ll have more to spend on things you really want, such as furnishings and extras for your new home. And if you’re buying for the first time, getting help towards your Stamp Duty or LBTT might mean you can step onto the property ladder sooner. 

How it works

It’s simple. We will agree to pay a percentage or fixed amount of your Stamp Duty or LBTT, which we will deduct from your completion statement. 

Why not speak to one of our sales executives for details? You’ll find their contact details on the relevant development page.

Find your dream home

Please note our Stamp Duty / LBTT Contribution offer is available on selected plots and developments for 100% open market purchases only (not Shared Ownership or Discounted Market Sale properties), subject to contract and status. See full T&Cs below.

  • New release!
    Abbeville Park
    Burgess Hill
    3 Bedrooms
    £ 495,000
  • Visit our Sales Office!
    Ascots Green
    Welwyn Garden City
    2 - 4 Bedrooms
    £ 365,000 - 750,000
  • New phase coming soon!
    Black Isle View
    Inverness

    Coming soon

  • New release!
    Beckley Place
    Oxford
    1 - 2 Bedrooms
    £ 290,000 - 405,000
  • Coming soon!
    Cable Wharf
    Gravesend

    Coming soon

  • Cann Hall Farm
    Clacton-On-Sea
    3 - 4 Bedrooms
    £ 367,500 - 440,000
  • Final phase now available!
    Carvers Meadow
    Attleborough
    2 Bedrooms
    £ 295,000
  • Sold out!
    Castle Park
    Aboyne

    Sold out (STC)

  • Shared Equity available!
    Chapelton
    Stonehaven
    2 - 5 Bedrooms
    £ 232,000 - 535,000
  • Just launched!
    Centurion Place
    Exeter

    Coming soon

  • Shared Ownership available!
    Denmark Lane
    Diss
    2 - 3 Bedrooms
    £ 287,500 - 340,000
  • Homes NOW available for sale!
    East Wick + Sweetwater
    London

    Partner development

  • Phase 2: Spring 2025
    Exhall Meadow
    Coventry

    Coming soon

  • Halstock Place
    Dorchester
    2 - 4 Bedrooms
    £ 365,000 - 849,999
  • Coming soon!
    Goldsmith's Green
    Kettering

    Coming soon

  • 1 & 2-bed apartments!
    Greenwood Gardens at Lower Herne Village
    Herne Bay
    1 - 2 Bedrooms
    £ 215,000 - 325,000
  • 5% deposit contribution!
    Longniddry Village
    Longniddry
    2 - 3 Bedrooms
    £ 345,000 - 487,000
  • Marble Square
    Derby

    Sold out (STC)

  • Fully reserved
    Mayflower Place
    Hull

    Sold out (STC)

  • Featured
    Meadow Brook
    Oxford
    2 - 4 Bedrooms
    £ 320,000 - 515,000
  • Meadowside
    Milton Keynes

    Sold out (STC)

  • Newcourt Edge
    Exeter
    3 Bedrooms
    £ 388,500
  • Featured
    Peninsula View
    Dorchester
    2 - 4 Bedrooms
    £ 550,000 - 850,000
  • Rose Green
    Bognor Regis

    Sold out (STC)

  • Last homes remaining
    Seaton Meadows
    Hartlepool
    2 - 3 Bedrooms
    £ 145,000 - 187,000
  • Shopwyke View
    Chichester

    Sold out (STC)

  • Smith's Dock
    North Shields

    Coming soon

  • Featured
    St Catherine’s Grange
    Ramsgate
    2 - 4 Bedrooms
    £ 265,000 - 415,000
  • Featured
    Tram Sheds at The Engine Yard
    Edinburgh
    1 - 2 Bedrooms
    £ 270,000 - 565,000
  • Phase 2: Summer 2025
    Thistleton Park
    Thornton-Cleveleys

    Coming soon

  • Featured
    Tornagrain
    Inverness
    3 - 4 Bedrooms
    £ 310,000 - 447,500
  • Part Exchange
    Whistle Wood
    Bordon
    3 - 4 Bedrooms
    £ 399,950 - 475,000
  • White House Park
    Attleborough

    Sold out (STC)

  • Woodend Mews
    Banchory

    Sold out (STC)

  • Just launched!
    Wood Mill Rise
    Doncaster
    2 - 3 Bedrooms
    £ 180,000 - 220,000

Stamp Duty / LBTT Contribution scheme terms and conditions

  • Offer available on selected plots and developments only*, subject to contract and status. 
  • Offer only available on 100% open market purchases and is not available on Shared Ownership or Discounted Market Sale properties.
  • The amount we pay will be agreed prior to reservation with our sales executive.
  • Offer to be claimed at the point of reservation.
  • Offer must be quoted on paperwork.
  • Offer is to contribute towards the purchaser’s actual liability for the standard current Stamp Duty Land Tax (SDLT) or Land and Buildings Transactional Tax (LBTT) OR up to a maximum value of 5% of the purchase price or alternatively an agreed fix sum.
  • This will be a one-off payment and the relevant amount shall be deducted from your completion statement.
  • The offer excludes incremental higher rates (3%) on top of normal Stamp Duty / LBTT rates if buying a new residential property means you will own more than one home or otherwise qualify to pay the higher rate of SDLT / LBTT.
  • Places for People does not take any responsibility for your mortgage. Your mortgage remains an independent contractual agreement between the home purchaser and provider.
  • Your home may be repossessed if you do not keep up repayments on your mortgage.
  • Offer may require reservation and exchange to have taken place by particular dates, which may vary for different plots.
  • Offer may be withdrawn or altered at any time prior to payment of reservation fee on the relevant plot.
  • Offer cannot be used in conjunction with any other discount, promotion or offer and cannot be redeemed retrospectively. No cash or other alternative.
  • Offer may not be accepted by some lenders or may lead to refusal to provide a mortgage based on your circumstances.
  • If the property sale is cancelled for any reason, the offer will no longer apply.
  • Stamp Duty / LBTT Contribution scheme is subject to availability and may be withdrawn at any time without notice. This does not affect reservations which are being processed using the incentive.
  • Our usual reservations and sales terms and conditions apply. Please speak to one of our sales executives for more details.
  • We reserve the right to amend any such offer as we see fit at any time. 

*Terms, Conditions and Eligibility criteria apply. Please speak to our sales executives for further details.