Property Taxes

Stamp Duty

What is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax (SDLT) is a government tax that you pay when you buy property or land in England or Northern Ireland. It applies to both residential and commercial properties above a certain price threshold.

Whether you're buying your first home, upgrading to a larger property, or investing in a buy-to-let, understanding how SDLT works can help you plan your budget more effectively.

When Do You Pay Stamp Duty?

You usually pay SDLT if you:

Buy a freehold or leasehold property.
Purchase through shared ownership.
Take on a transfer of ownership in exchange for payment (even if it’s a gift).

How Much is Stamp Duty?

The amount you pay depends on:

The purchase price of the property.
Whether it’s your primary residence, a second home, or a buy-to-let.
If you’re a first-time buyer, you may qualify for relief.

SDLT Rates for Residential Property (as of 2025–26):

Portion of Property Price	Standard Rate
Up to £125,000	0%
£125,001 to £250,000	2%
£250,001 to £925,000	5%
£925,001 to £1.5m	10%
Over £1.5 million	12%

📌 Second homes or buy-to-let properties usually incur a 5% surcharge on top of the standard rates.

First-Time Buyer Relief:

If you're a first-time buyer, you pay:

0% on the first £300,000.
5% on the portion between £300,001 and £500,000.
No relief if the property costs more than £500,000.

When and How Do You Pay SDLT?

SDLT must be paid within 14 days of completing your property purchase.
In most cases, your solicitor or conveyancer will handle the payment and file the return with HMRC on your behalf.

Need Help Calculating Stamp Duty?

Buying a property can come with unexpected costs. We’re here to help you understand what to expect and guide you every step of the way. Get in touch for a personalised overview based on your situation – whether you're buying your first home or expanding your portfolio.

Capital Gains tax

What is Capital Gains Tax (CGT)?

Capital Gains Tax (CGT) is a tax you may need to pay when you sell (or "dispose of") a property that has increased in value. The tax is paid on the profit you make – that is, the difference between what you paid for the property and what you sold it for – not on the total amount you receive.

Does Capital Gains Tax Apply to All Property Sales?

Not always. If you're selling your primary residence (the home you live in), you're usually covered by Private Residence Relief, which means you likely won’t need to pay CGT.

However, CGT may apply if:

You’re selling a buy-to-let property.
You’re disposing of a second home or holiday home.
You’ve inherited a property and are now selling it.
Part of the property has been used for business purposes.

How Much is Capital Gains Tax?

The amount you pay depends on your income tax band:

Basic rate taxpayers: 18% on gains from residential property.
Higher or additional rate taxpayers: 28% on gains from residential property.

Everyone gets an annual Capital Gains Tax allowance – the amount of gain you can make before tax kicks in. As of 2025–26, this allowance is £3,000 per individual.

📌 Important: Tax rules change, and individual circumstances vary. Always speak to a qualified tax advisor or accountant before making decisions.

How Do I Report and Pay CGT?

If CGT is due, you must:

Report the gain to HMRC – usually within 60 days of completion.
Pay the tax owed within the same 60-day period.

This can be done through HMRC’s online system or with the help of a tax professional.

Need Advice When Selling?

If you're unsure how Capital Gains Tax might affect your property sale, we’re here to help. Our team can connect you with trusted tax experts and guide you through the selling process clearly and confidently.

Inheritance tax

What is Inheritance Tax (IHT)?

Inheritance Tax (IHT) is a tax on the estate (the property, money, and possessions) of someone who has passed away. If you inherit a property, IHT may apply depending on the estate's total value and who is inheriting it.

While not every estate is liable for IHT, it's essential to understand how it works, especially if you've inherited property or are planning your estate for future generations.

When Does Inheritance Tax Apply?

IHT is usually charged if the estate's total value exceeds £325,000. This threshold is known as the nil-rate band.

However, if a home is passed on to a direct descendant (such as a child or grandchild), the estate may also benefit from the residence nil-rate band, which can increase the threshold by an additional £175,000 (as of 2025–25).

Together, this means many estates can pass on up to £500,000 tax-free—or up to £1 million for married couples or civil partners if both thresholds are used.

How Much is Inheritance Tax?

The standard rate is 40%, applied to the value of the estate above the tax-free threshold.
A reduced rate of 36% may apply if 10% or more of the estate is left to charity.

Inheriting a Property: What You Need to Know

If you inherit a property:

The estate pays IHT, not the individual beneficiary.
You may face Capital Gains Tax later if you sell the property and it has increased in value.
If the estate includes multiple beneficiaries, property may need to be sold to divide assets or pay IHT due.

In some cases, beneficiaries may need to arrange financing or sell assets to cover the tax owed.

📌 Tip: There are legal ways to reduce IHT liability, including gifting assets during your lifetime or setting up trusts. Early planning is key.

Who Pays Inheritance Tax and When?

IHT is usually paid by the executor of the will or administrator of the estate.
Payment is typically due within 6 months of the person’s death.
Interest may be charged on late payments.

Inheriting or Planning to Leave a Property?

We understand that dealing with property during sensitive times can be stressful. Whether you’ve inherited a home or want to prepare your estate wisely, our team can connect you with trusted legal and tax professionals to ensure everything is handled correctly and with care.