When Do You Pay Stamp Duty in the UK? Essential Information for London Property Buyers

What Is Stamp Duty and Who Pays It?

Stamp Duty Land Tax (SDLT) is a tax on the purchase of property or land in England and Northern Ireland. The buyer is responsible for paying it — this includes freehold and leasehold purchases, whether you use a mortgage or pay cash.

• Amount depends on purchase price, buyer status (first-time buyer, additional property), residency, and property type.
• Applies to residential, commercial and mixed-use properties.

When Exactly Do You Pay Stamp Duty?

SDLT must be paid within 14 calendar days of completion. Completion — not exchange of contracts — is the date that starts the 14-day clock. Completion is when the legal ownership transfers and you usually receive the keys.

How Is Stamp Duty Paid?

Most buyers instruct their solicitor or conveyancer to calculate the liability, submit the SDLT return and pay HMRC on completion day. If your solicitor doesn't handle it, you must submit the return and make payment yourself within the 14-day deadline.

1. Calculate SDLT based on price and buyer status.
2. Complete and submit SDLT return to HMRC.
3. Pay the amount due within 14 days of completion.
4. Receive an SDLT5 certificate to register the title with Land Registry.

Solicitor-managed

Most streamlined: solicitor files and pays on your behalf on completion day.

DIY submission

You can submit the SDLT return and payment to HMRC yourself if needed — just watch the 14-day deadline.

What Happens If You Miss the Deadline?

Late submission or payment attracts penalties and interest from HMRC. Typical consequences include:

• Initial penalty: £100 if return is up to 3 months late.
• Further penalty: £200 if more than 3 months late.
• Interest: Charged daily on the unpaid amount from the due date.

Penalties may also delay Land Registry registration, leaving your ownership unrecorded until resolved.

Exceptions and Special Cases

Some transactions attract no SDLT or need a return but no payment. Examples:

• Low value transfers under £40,000.
• Certain leasehold deals with nominal premiums.
• Transfers between spouses on divorce/separation (depending on terms).
• Inherited property (no SDLT on inheritance itself; SDLT may apply on later sale or transfer).
• Gifts with no mortgage and no money changing hands usually attract no SDLT.

Even where no tax is due, your solicitor may still submit an SDLT return — always check.

When Should You Budget for Stamp Duty?

Budget for SDLT early — it is usually not included in mortgage funds unless you borrow extra specifically for it. Prepare funds:

• During mortgage offer discussions.
• When agreeing terms on an offer.
• Before exchange of contracts.
• In advance of completion to transfer funds to your solicitor.

How Much Stamp Duty Will You Pay?

Residential SDLT bands (standard rates):

Surcharges

• Additional property surcharge: +3%.
• Non-UK resident surcharge: +2%.

First-time buyer relief

• 0% on the portion up to £425,000.
• 5% on the portion from £425,001 to £625,000.
• Purchases over £625,000 usually use standard rates.

Top Tips for Meeting Stamp Duty Deadlines

• Confirm your solicitor will manage the SDLT return and payment.
• Set aside funds well before completion.
• Know your buyer status (first-time, additional property, non-UK resident).
• Don’t assume exemptions — get legal advice.
• Ask for your SDLT5 certificate after submission to keep with your records.

Why This Matters for London Buyers

With London prices higher than the national average, SDLT liabilities can be substantial. Getting the timing and paperwork right avoids costly penalties and delays in registering your ownership.

At City Realtor we work with trusted legal professionals to keep the process smooth and compliant.

Conclusion: Know the Date, Avoid the Risk

When do you pay stamp duty? Within 14 calendar days of completion. Plan early, budget for the sum, and ensure your solicitor is clear on responsibility — that simple step can save money and stress.