Do You Pay Stamp Duty When Selling a House? The Complete Answer
The answer is straightforwardly no because Stamp Duty Land Tax (SDLT) is a buyer’s obligation, not yours. Sellers have to pay different costs, such as estate agent’s fees, conveyancing charges, and potential Capital Gain Tax when selling a property.
As property experts in East London, Estate Agents Ilford guide sellers through these questions every day before every sale. Here, in this guide, we’ll break down exactly what sellers are liable for and how buyers’ stamp duty affects their sale.
Do You Pay Stamp Duty When Selling A House In The UK?
When selling a house in England and Northern Ireland, it’s the buyers who pay stamp duty. As a seller, you have other costs and taxes to pay when selling your property. Sellers are not responsible for paying SDLT when selling their main residence, investment property, or second homes.
Always remember that you need to pay stamp duty on the property you’re buying, not selling. If you are buying a property, use our Stamp Duty calculator to estimate the SDLT rates by entering your purchase price.
What is Stamp Duty Land Tax (SDLT)?
Stamp duty is the tax you pay to HMRC when buying a property in the UK, based on the property price. The rate of the stamp duty depends on the location and price of the property.
The highly valued properties in prime locations have high SDLT rates compared to the properties with less selling value. The buyers will pay stamp duty in the UK when they buy a:
- Freehold property
- Leasehold properties (existing or new)
- Properties with shared ownership schemes
- Properties in exchange for payments, such as a mortgage.
- Share in a house.
| 14-Day Payment Rule Once the property deal is done, you have 14 days to file the paperwork to HMRC and pay stamp duty. Generally, your solicitor will file stamp duty returns for you. Missing the deadlines can lead to penalties and interest. Even if no tax is owed, you may still inform HMRC. |
Current Stamp Duty Rates From 1st April 2025
Certain thresholds are set by the government of the UK when SDLT starts to apply. If you buy property less than that threshold, there is no stamp duty to pay.
Stamp Duty Land Tax Thresholds 2026 UK
| Category | Threshold | Notes |
| Residential Properties | £125,000 | No SDLT if the property price is below this amount |
| First-Time Buyers (≤ £500,000) | £300,000 | Applies only if the property value is £500,000 or less |
| Non-Residential Land & Properties | £150,000 | No SDLT below this threshold |
Standard Residential and Additional Property SDLT Rates
If you are buying a residential property, certain rates are applicable for SDLT:
| Stamp Duty Tax Band | Normal Rate | Buying an Additional Property |
| Up to £125,000 | 0% | 5%* ( £40,000 to £125,000) |
| £125,001 to £250,000 | 2% | 5% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5 million | 10% | 15% |
| Over £1.5 million | 12% | 17% |
An additional property purchased for less than £40,000 is exempt from tax, while the standard 5% rate applies to the portion from £40,000 to £125,000.
Stamp Duty Rates for First-Time Buyers
Here are the SDLT rates that first-time buyers currently pay based on the property price:
| Property Price Band | Stamp Duty Rate |
| £0 – £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| Over £500,000 | Standard rates |
SDLT for Non-Residential Properties
Like residential properties, the stamp is paid when buying a non-resident property, such as commercial properties or mixed-use buildings. The buyers will cover the stamp duty for non-residential properties, not the sellers.
| Property Price Band | SDLT Rate |
| Up to £150,000 | 0% |
| £150,001 – £250,000 | 2% |
| Over £250,000 | 5% |
Can Stamp Duty Affect Your Sale?
The stamp duty may affect the seller even if they are not paying it. If your property has a higher value, the high rates of stamp duty affect your sale by reducing offers or deterring potential buyers. It may force you to accept offers at a lower price, which leaves you with less equity to put toward your next home.
What Costs Do Sellers Actually Pay?
Sellers are exempt from paying stamp duty, but there are costs associated with selling property, like estate agent fees, solicitor fees, and CGT capital gains tax if the property you are selling is not your only home.
| Cost | Amount | When Paid |
| Estate Agent Fees | 1% to 3% of the sale price (avg 1.42% including VAT) | On completion |
| Conveyancing / Solicitor Fees | £1,200 to £1,500 | On completion |
| Energy Performance Certificate | £60 to £120 | Before listing |
| Capital Gains Tax | 18% or 24% of gain (main homes exempt) | Within 60 days of completion |
| Mortgage Early Repayment Charge | Varies, always check your mortgage terms | On completion |
| Removal Costs | Get quotes because costs vary by distance and volume | Moving day |
Selling and buying a House At the Same Time
If you sell your property at the same time and buy another property on the same day, the rules are so simple:
- You don’t pay stamp duty on the sale.
- You do pay stamp duty on the purchase you make.
Selling does not cancel or reduce the tax on your new purchase. Hence, there is no exemption just because you buy and sell property at the same time. If you are buying a second home or additional property, you will pay a stamp duty surcharge of 5% on top of the basic rate.
Adding Stamp Duty to a Mortgage
You can add your stamp duty on a mortgage, but it can increase your borrowing costs. It leads to paying more interest. This approach can ease immediate cash flow pressures, which results in higher costs overall. Therefore, it is important to factor in the high cost of borrowing before making these financial decisions.
Can You Get a Stamp Duty Refund?
Yes, you can claim a refund in certain circumstances. When you buy a new residential property and still own the previous property, you will pay 3% surcharge for a second home on the standard Stamp duty rates. If you sell your previous house within 36 months or 3 years of buying the second home, you can claim a refund of the stamp duty you paid.
You can claim a refund on that extra 3% surcharge. You will only get 3%of the stamp duty, not the full amount. You can visit gov.uk to see who is exempt from stamp duty and who can get relief.
How to Claim Stamp Duty Refund?
You can claim a refund through the HM Revenue and Customs website.
- Go to the official website of the HMRC refund service online.
- Provides detailed information such as:
- Purchase date of the second home
- Sale date of previous home
- Stamp duty transaction reference number
- Submit your claim.
Important Point to know:
You must apply for a stamp duty refund within 12 months of selling your old property or within 12 months of the stamp duty filing date.
Final Thoughts
The question “Do you pay stamp duty when selling a house?” comes up constantly, and the answer is simply no. But the sellers still have costs to plan for, such as estate agent fees and potential CGT. Understanding these costs upfront helps you plan your move with confidence and avoid any last-minute surprises. For expert guidance, explore our free property valuation services and property management services to make your sale as smooth and cost-effective as possible.
