Buying a home in London comes with a number of important considerations. One is Stamp Duty Land Tax (SDLT).

Whether you’re a first time buyer, investing in a second property or relocating to the capital city, it’s an important cost to budget for.

The amount of stamp duty you’ll need to pay depends on several factors, including:

• The purchase price of the property
• Your buyer status
• Whether you already own other property

Stamp duty is calculated using a tiered system, meaning different portions of the property price are taxed at different rates.

The current residential stamp duty rates are:

What Stamp Duty Does a First Time Buyer Pay in London?

First-time buyers in England are eligible for some stamp duty relief, reducing the amount of tax payable on lower-value properties.

Current first-time buyer rates are:

• 0% up to £300,000
• 5% on £300,001 to £500,000
• Properties over £500,000 are subject to standard stamp duty rates

First time buyers in London are also eligible for this relief but may find that a property in the capital city exceeds the threshold and no stamp duty relief can be applied.

How Much is Stamp Duty on Second Properties in London?

If you are buying a second home or a buy-to-let property anywhere in England, including London, you will usually pay an additional surcharge on top of the standard stamp duty rate.

This rate is currently 5% across all stamp duty bands.

What this means:

• You will pay the standard SDLT rate for each band
• You will pay an additional 5% on the entire purchase price

How Much is Stamp Duty for International Buyers in London?

As England’s capital city, London is a popular location for buyers across the world.

If you are a non-UK resident purchasing property in England, or you have not spent six months in the UK during the 12 months before your purchase, you will be considered an international buyer in terms of stamp duty.

International buyers are subject to pay an additional 2% surcharge.

This is charged on top of all other applicable stamp duty rates, including second home surcharges where relevant.

How Much Stamp Duty Do You Pay on New Build Homes in London?

Stamp duty for new build properties in London is calculated in the same way as older properties. The rates and thresholds are the same, with the Stamp Duty Land Tax still based on the purchase price.

While stamp duty is calculated in the same way, new build developments, like our Opus development, can offer certain advantages:

• Energy efficiency
• Warranty coverage and reduced maintenance costs
• Desirable locations
• Modern decor

For buyers considering a new home in London, it’s still essential to factor stamp duty into the overall cost, alongside the purchase price and associated fees.

A Helpful Stamp Duty Calculator for London Buyers

To work out how much stamp duty you’ll need to pay, you can use the official government Stamp Duty Land Tax calculator. This allows you to input your property price and buyer status to see a full breakdown of your expected costs.