Stamp Duty changes - Parkgate Estate Agents Richmond

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Moving home? Here’s what you need to know about stamp duty – updated

With the publication of Kwasi Kwarteng’s mini-budget on 23rd September we’ve updated the financial numbers in this article:

Moving home, while an exciting prospect, involves a lot of thorough planning and financial commitment. Before embarking on the journey, you will need to be clued up on all aspects of the buying process – with stamp duty being one of them.

As the Stamp Duty Land Tax (SDLT) system has seen major changes in recent years, it’s important that home movers and first-time buyers are aware of the potential impacts this could have when purchasing a property.

With this in mind, here at Parkgate Estates we’ve outlined everything you’ll need to know about stamp duty.

What is stamp duty and who pays for it?

Stamp duty is a levy you pay to HM Revenue & Customs when purchasing a home, which is charged in bands.

In England and Northern Ireland, you’re liable to pay stamp duty when you buy a residential property or a piece of land costing more than £125,000. This tax applies to both freehold and leasehold properties, whether you’re buying outright or with a mortgage.

How much is stamp duty?

The rate you pay depends on what price threshold your property falls into and where the property is located.

As a buyer, you don’t pay stamp duty if you are purchasing a property worth less than £250,000. If you are buying a second home, then stamp duty – plus the additional stamp duty rate of 3% – is levied on properties up to £250,000 and zero is the total property price is up to £40,000.

When and how do you pay stamp duty?

The stamp duty return should be submitted and paid within 30 days of completing the purchase of your property.

While you can pay this yourself, it’s typically your solicitor who will deal with tax return and any payment due for you. Either way, you will need to ensure that it is submitted on time, as failure to do so could land you with a penalty charge.

If the price of your new home is under £125,000, you must still submit a return (unless exempt) even though you won’t need to pay any stamp duty.

Stamp duty for home movers and landlords

As a home mover, you won’t pay any stamp duty on the first £250,000 of a property purchase (updated 23/09/2022).

Homes worth £250,001 and £925,000 require 5%, while there is a 10% stamp duty charge for properties worth between £925,001 and £1.5 million. Anything above £1.5 million is taxed at 12%.

What’s more, since April 2016, landlords pay an extra 3% of stamp duty on the portion of the property up to £125,000 then 5%, 8%, 13% and 15% respectively for the price bands.

The table below shows the percentage of stamp duty that purchasers will be charged per threshold. This could also be used to work out the purchase price of the lease premium:

Purchase price/lease premium or transaction value Standard rate Buy-to-let/second home rate
Up to £250,000 0% 3%
£250,001 – £925,000 5% 8%
£925,001 – £1.5m 10% 13%
Over £1.5m 12% 15%


Stamp duty tax relief for first-time buyers

In September 2022 Kwasi Kwarteng abolished stamp duty for first-time buyers purchasing a home costing up to £425,000. This updates the previous change in 2017 when the change went up to £300,000. The relief can be claimed for first-house purchases costing up to £625,000.

Standard rates for homes costing more than £500,000, however, will still apply. Since then, official records show that over 180,000 buyers have benefited from the tax relief, together saving an estimated £426 million.

The table below demonstrates the new stamp duty bands for first-time buyers:

Property price New stamp duty cost
£0,000 – £425,000 £0
£425,001 – £625,000 £10,000

While this may seem like quite a bit of information to absorb, our team at Parkgate Estates can assist you with stamp duty and all other aspects of the home moving process.

For more information on buying or selling a home in Richmond, Putney, Sheen and Mortlake, please get in touch with us on: 020 8940 2991.

Additionally, to find out how much your property could be worth on the current market, we offer an instant online valuations.


Keywords: Property, Buyers, Sellers, Estate Agents, Instant Online Valuation

Meta tags: Sellers, First-Time Buyers, Second Homes, Buyers, Stamp Duty Land Tax

Meta Description: Parkgate Estates outlines the most important facts on stamp duty for investors, first-time buyers and home movers.

Emre OvacıkEmre Ovacık
08:38 01 Sep 23
Very responsive, informative and always kind people. We didn't have much time, but they helped us with creating some time in their agenda and squeezing us in. We rented our place just in time, thanks to them.
Branka ObradovicBranka Obradovic
12:21 22 Feb 23
Parkgate has been my agent of choice for a number of years now and has secured good tenants for my properties. They are hard working, respond in a timely manner and best of all are always friendly rather than aggressive or overbearing, which is the case with many of their competitors.
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15:01 02 Feb 23
Excellent service throughout.We rented a property that they manage for 4 years.Parkgate team is very professional and approachable. Way better than dealing with a big agency, they offer a more personal approach, always available and willing to solve any issues.From the tenancy agreement to handing the property back, it has been a real pleasure working with them.
Catherine BrownCatherine Brown
12:16 30 Aug 22
I have had an eight year relationship with Parkgate, in fact they originally sold my flat to me 12 years ago in Putney. Their service and professionalism is unrivalled. They managed the leasing of my flat from 2014 and assisted me to negotiate the successful sale just now in 2022. Chris has been there throughout with an open door and no request too trivial to assist. Klaudia negotiated my sale and worked with amazing tenacity throughout. I would not hesitate to recommend Parkgate to anyone in the Putney/Richmond area, they know their stuff.
Ali ChampkinsAli Champkins
10:16 31 Jan 22
We have had a wonderful experience with Parkgate and would highly recommend them. Chris was brilliant on the valuation - what we liked is he was totally honest about our chances of selling and gave us the positives and negatives about our property (such as facing a council estate!). Other agents tend to just gush over the good bits which is great, but actually not that helpful.The selling process was great - we were given good feedback from the viewings and got the price we wanted within about 8 weeks.We really have nothing but praise for Klaudia and Chris, it's been really enjoyable, easy and stress free and we will be recommending Parkgate to all our friends in the area and our building.***** Thank you! *****