Buying a property comes with more than just the purchase price.
One of the largest additional costs is the Stamp Duty Land Tax (SDLT) in England, or the Land Transaction Tax (LTT) in Wales. Understanding who pays this tax, when it’s due, and how it differs between the two systems can help you plan your finances more effectively.
What Is Stamp Duty?
Stamp Duty Land Tax is a government tax paid when purchasing property or land above a certain value in England. In Wales, this is replaced by the Land Transaction Tax, which operates in much the same way but is collected by the Welsh Revenue Authority instead of HMRC.
In both cases, the tax is paid by the person or business buying the property, not the seller. The amount owed depends on the price of the property and your situation, whether you’re a first-time buyer, purchasing a main residence, or adding to a property portfolio.
Who Pays Stamp Duty or LTT?
The buyer is always responsible for paying Stamp Duty or Land Transaction Tax. Although your solicitor will handle the calculation, submission, and payment as part of the conveyancing process, it’s important to remember that the legal responsibility still sits with you.
Typically, your solicitor will collect the tax funds from you shortly before completion. They’ll then submit the relevant return to HMRC (for SDLT) or the Welsh Revenue Authority (for LTT) and arrange payment on your behalf. This ensures there are no delays when registering your new ownership with the Land Registry.
When Do You Have to Pay?
In England and Northern Ireland, SDLT must be paid and filed with HMRC within 14 days of completion. In Wales, you have a little more time, the LTT return and payment must be made within 30 days.
Because the payment forms part of the conveyancing process, most buyers won’t need to worry about this deadline directly, but your solicitor will ensure everything is submitted on time. Missing the deadline can lead to fines, interest, or registration delays, so it’s vital to provide your solicitor with funds promptly.
England – SDLT
As of 2025, the main SDLT thresholds are:
- Up to £250,000 – no tax
- £250,001 to £925,000 – 5%
- £925,001 to £1.5 million – 10%
- Above £1.5 million – 12%
First-time buyers benefit from a higher threshold, they don’t pay SDLT on the first £425,000 of a property up to £625,000.
If you’re buying an additional property, you’ll pay a 3% surcharge on top of the standard rates.
Wales – LTT
The Welsh thresholds are slightly different:
- Up to £225,000 – no tax
- £225,001 to £400,000 – 6%
- £400,001 to £750,000 – 7.5%
- £750,001 to £1.5 million – 10%
- Above £1.5 million – 12%
For additional properties, an extra 4% surcharge applies.
Who handles the payment?
At Dudden Law, your conveyancing solicitor will take care of the entire process. They calculate the correct amount due, complete the tax return, and make the payment to the relevant authority. Once the payment has been confirmed, they obtain the certificate needed to register your ownership with the Land Registry.
While this means you won’t need to contact HMRC or the WRA directly, it’s crucial to ensure your solicitor has the necessary funds in advance. Delays in providing payment could affect your completion date or result in late fees.
What happens if you don’t pay on time?
If the tax or return isn’t submitted within the required timeframe, you could face late payment penalties and interest charges. More seriously, it can delay your property being officially registered in your name. This is why solicitors take the responsibility of submitting these payments so seriously, it ensures your transaction is fully complete and compliant with the law
Key takeaway
Stamp Duty and Land Transaction Tax can seem complicated, but the key points are simple: the buyer pays the tax, and your solicitor submits and pays it for you. The exact amount depends on where the property is located, its value, and your circumstances.
By understanding how the system works early in the buying process, you can plan your budget confidently and avoid any last-minute surprises on completion day.