When selling your house, one of the common questions is: do you, as the seller, have to pay Stamp Duty? In England Stamp Duty Land Tax (SDLT) is a tax on property purchases; meaning it’s paid by the buyer, not the seller. The good news is that sellers do not pay Stamp Duty when selling a house. However, there are other costs and taxes you should be aware of when you sell your home.
What Is Stamp Duty Land Tax (SDLT)?
Stamp Duty Land Tax (SDLT), usually just called Stamp Duty, is a one off tax charged on the purchase of property or land in England and Northern Ireland. Buyers pay SDLT on completed property purchases above certain price thresholds. The rate is calculated in bands, so the more expensive the property, the higher the Stamp Duty bill for the buyer.
For example, as of early 2026, a buyer pays 0% on the portion of the price up to £250,000, 5% on £250,001–£925,000, 10% on £925,001–£1.5 million, and 12% above £1.5 million. First time buyers currently benefit from relief; no Stamp Duty on homes up to £425,000 (with a 5% rate on the portion £425,001–£625,000). (Note: Stamp Duty rules and thresholds can change over time with government policy.)
Who Pays Stamp Duty - Buyer or Seller?
In a typical house sale in England, the buyer is responsible for paying Stamp Duty, not the seller. When you sell your house, you do not have to pay any Stamp Duty on the sale proceeds. The tax is triggered by transfer of property ownership to the new owner, so it’s the homebuyer who pays SDLT to HMRC, usually as part of their purchase closing costs. Your solicitor or conveyancer will usually arrange for any Stamp Duty due to be paid on the buyer’s behalf shortly after completion. As the seller, you won’t need to factor Stamp Duty into your budget for selling the property.
It’s worth noting this holds true for different types of property as well. Whether it’s a residential home or a commercial property, the seller does not pay Stamp Duty on the transaction – the buyer does. For instance, if you’re selling a shop or an office building, the purchaser would pay any applicable Stamp Duty (or equivalent tax) on that sale.
What about other taxes when selling? The sale itself doesn’t incur Stamp Duty for you, but in some cases you might face Capital Gains Tax (CGT). CGT can apply if the property isn’t your main residence (for example, a buy-to-let or a second home) and you sell it at a profit. The good news is your primary home is usually exempt from CGT due to Private Residence Relief. But if you’re selling an investment property or second house, be prepared for a possible CGT bill (the only tax a seller might have to pay on the sale). Always check with an accountant or tax advisor if you think Capital Gains Tax could apply in your situation.
What Costs Do You Pay When Selling Your House?
While you don’t pay Stamp Duty as a seller, selling a house isn’t free. There are several costs you should budget for. Here are the main expenses a homeowner typically pays when selling a property in England:
Estate Agent Fees: If you use an estate agent to market and sell your home, you’ll pay them a commission. The fee is usually deducted from the proceeds at completion. Always clarify the agency rate and services provided upfront.
Solicitor/Conveyancer Fees: You’ll need a solicitor or licensed conveyancer to handle the legal paperwork (contracts, title transfer, etc.). Legal fees for selling are typically in the range of £800–£1,500 for a straightforward sale, but can be more for leasehold properties or complex transactions. This includes standard disbursements (like office copy entries, bank transfer fees) but exclude any work for your onward purchase.
Removal or Moving Costs: Budget for the cost of moving out; whether hiring a professional removal company or renting a van. Costs vary widely depending on distance and volume, from a few hundred pounds for a local move to over £1,000 for long distances. If you plan to move yourself with help of friends/family, costs will be lower (van hire, fuel, etc.).
Mortgage Early Repayment Fees: If you have a mortgage on the property, check with your lender about any early repayment charges. Some fixed-rate mortgages charge an early repayment penalty (ERC) if you pay off the loan before a certain date. This can be a percentage (e.g. 1–5%) of the remaining loan balance. You might also have a small admin fee (sometimes called a mortgage exit fee or deed release fee) to close out the mortgage.
Energy Performance Certificate (EPC): In the UK, an EPC is required when selling a home (it provides information on the property’s energy efficiency). If your EPC is still valid (they last 10 years), you won’t need a new one. Otherwise, obtaining an EPC typically costs about £60–£120.
Minor Repairs & Staging: While optional, many sellers spend money on small repairs, painting, or home staging to make the property more attractive to buyers. Even a few hundred pounds on sprucing up the home can help achieve a quicker sale at a better price. This isn’t a mandatory cost, but it’s something to consider in your budget.
Possible Capital Gains Tax: As mentioned earlier, most home sellers won’t owe tax on the sale. But if you are selling a property that isn’t your primary residence (e.g., a rental property or holiday home), you may owe Capital Gains Tax (CGT) on the profit. The CGT rate for residential property gains (above the annual allowance) is 18% for basic rate taxpayers or 28% for higher rate taxpayers on the gain amount. (CGT does not apply if you’re selling your main home that you’ve lived in, in almost all cases.)
Buying Another Home After Selling
Many people who sell their house will also be buying a new home around the same time. It’s important to remember that if you’re purchasing another property after selling, you will likely have to pay Stamp Duty on that new purchase (assuming the price is above the Stamp Duty threshold). In other words, while you don’t pay any tax to sell your old home, you should budget for Stamp Duty on the house you are going to buy next.
Stamp Duty on your new home will depend on the price and your buyer status. For example, if you’re simply moving from one main residence to another, you’ll pay the standard SDLT rates on the new property (with no SDLT on the first £250k of the price, as of 2026). First time buyers (if you sold a property but never owned one before; which is unlikely or perhaps if the person buying with you is a first time buyer) can get relief as discussed earlier.
Own two properties temporarily? One scenario to be mindful of: if your purchase completes before you manage to sell your old home, you could end up owning two properties at once. In that case, the home you’re buying would be considered an “additional property” at the time of purchase, and the higher Stamp Duty rate for second homes applies. (In England, there is a 5% surcharge on top of standard rates for buying an additional property, as of late 2024/2025, up from the previous 3% surcharge.) The good news is this doesn’t have to be permanent; if you sell your previous home within 3 years of buying the new one, you can claim a refund of the extra Stamp Duty you paid on that second home purchase
Stamp Duty Exemptions and Who Doesn’t Pay
We’ve established that sellers don’t pay Stamp Duty. But even buyers have some cases where they don’t have to pay SDLT. Who is exempt from Stamp Duty? Here are some key scenarios where no Stamp Duty is due on a property transaction:
First Time Buyers (up to a limit): First time home buyers benefit from Stamp Duty relief. If you’re a first-time buyer in England or NI, you pay zero Stamp Duty on a home costing up to £425,000, and a reduced rate up to £625,000. (After 31 March 2025, this nil-rate threshold for first timers is set to revert to £300,000, but at present £425k is the limit.) This relief means many first-time buyers are completely exempt from SDLT.
Lower Value Properties: There is a general price threshold below which no Stamp Duty is charged at all, for any buyer. Currently, if you buy a property for £250,000 or less, there’s no SDLT to pay (for purchases up to March 2025; beyond that, the threshold is expected to return to £125,000). Properties under the threshold are effectively exempt for the buyer.
Transfers Due to Divorce or Separation: If a property is being transferred between spouses or partners as part of a divorce settlement (or the end of a civil partnership), Stamp Duty is typically not payable on that transfer. Essentially, because no “purchase” in the normal sense is happening (no money changing hands in a market sale), SDLT can be relieved in these cases.
Gifts or Inherited Property: Likewise, if you receive a property as a gift or through inheritance, there’s usually no Stamp Duty because you aren’t “buying” it for money. For example, parents gifting a house to their child ; if the child isn’t paying for it means no SDLT is due. (Be aware other taxes like inheritance tax or CGT could be relevant, but Stamp Duty isn’t.) One caveat: if the property has an outstanding mortgage that the recipient takes over as part of the transfer, that mortgage value can count as “consideration” and might trigger some Stamp Duty. Always get professional advice in such scenarios.
Certain Entities or Special Circumstances: There are a few other specific reliefs (for example, multiple dwellings relief, charities or housing associations purchases, etc.), but these are not common for standard home sellers/buyers. The average homeowner’s exemptions are covered by the points above. The main idea is that Stamp Duty applies only when you buy, and even then many first time buyers or lower value purchases won’t incur it.
How Michael Anthony Estate Agents Can Help
Thinking of selling your home and unsure what costs you actually need to budget for?
At Michael Anthony Estate Agents, we’ll guide you through the selling process clearly and honestly; from understanding fees and taxes to achieving the best possible sale price. Get in touch today.
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Frequently Asked Questions
How long do you have to sell your house to avoid Stamp Duty?
If you buy a new home before selling your old one (thus owning two properties temporarily), you’ll have paid the higher Stamp Duty rate on the new purchase. To avoid permanently losing that extra tax, you need to sell your previous home within 3 years of buying the new property. Selling within three years allows you to claim a refund of the additional Stamp Duty (the 3% or 5% surcharge for second homes) you paid on the new house. In practical terms, HMRC gives you a 3 year window to dispose of your former main residence. If you sell after the 3-year mark, you normally can’t get that Stamp Duty back; it becomes an extra cost.
What do you have to pay when you sell your house?
When you sell a house in England, you don’t pay any Stamp Duty; that tax is for buyers. However, sellers incur other costs. The main things you have to pay when selling your house are:
Estate agent fees for handling the sale (usually a percentage of the sale price, often 1–3% +VAT).
Legal fees for your solicitor or conveyancer who manages the contracts and transfer of title (these can be a fixed fee or hourly, typically a few hundred pounds up to around £1,500).
Removal costs or other moving expenses to vacate the property (depending on distance/volume this might range from renting a van for £100 to hiring movers for £1,000+).
Mortgage-related fees if applicable any early repayment charges for paying off your mortgage early, or a small admin fee from your lender on closing the mortgage account.
Miscellaneous costs: These could include an EPC certificate (around £60-£120 if you need a new one), and possibly some repairs, cleaning, or home staging costs to prep the house for sale.
One possible tax when selling is Capital Gains Tax, but this only applies in certain cases mainly if the property was not your primary residence. If it’s your main home, you generally don’t pay any tax on the sale. If it’s a second home or rental property, then capital gains tax may be due on the profit from the sale (after deducting your annual allowance and any permissible costs). Always check the current CGT rules or consult an accountant for your personal circumstances.
Who is exempt from paying Stamp Duty?
In short, many people won’t pay Stamp Duty: if you’re selling only, or if you’re buying but fall under first time buyer relief or below the price threshold, you are exempt. And remember, any Stamp Duty that is due is always paid by the buyer, not the seller.