Do You Pay Stamp Duty When Selling a House? A Complete Guide

If you are planning to sell your home in the UK, it’s natural to wonder about the various costs and taxes involved in the process. One common question is, do you pay stamp duty when you sell a house? Stamp duty, formally known as Stamp Duty Land Tax (SDLT) in England and Northern Ireland, is often misunderstood, and many prospective sellers confuse it as a tax they owe when selling their property.

This detailed guide will clarify the role of stamp duty in property transactions, covering key topics including stamp duty on selling property, who pays stamp duty—the buyer or seller?, stamp duty vs capital gains tax, property selling costs, taxes when selling a house, and stamp duty rules explained.

Whether you’re a first-time seller, an experienced landlord, or simply looking to understand the financial side of selling a home, this article will give you the full picture.

What Is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a government tax imposed on buyers when purchasing residential or non-residential property in England and Northern Ireland. The tax applies only when buying property above certain price thresholds, and the amount is calculated based on the purchase price slab.

For example, as of April 2025 rates:

• 0% on properties up to £125,000
• 2% on the portion from £125,001 to £250,000
• 5% on the portion from £250,001 to £925,000
• 10% on £925,001 to £1.5 million
• 12% on anything above £1.5 million

First-time buyers may have reliefs that increase the tax-free threshold to £425,000, paying lower rates up to £625,000.

Stamp duty is collected only from buyers, charged at the time the purchase completes. It is a one-off tax that must be paid within 14 days of completion, typically by the buyer’s solicitor to HM Revenue & Customs (HMRC).

Do You Pay Stamp Duty When Selling a House?

The simple answer is no—you do not pay stamp duty when selling your house. Stamp duty tax liability lies exclusively with the buyer in a property transaction.

When you sell a house, you receive the sale proceeds, while the buyer is responsible for paying SDLT based on the price they pay for the property. Sellers don’t incur any SDLT costs. This rule applies whether you are selling your home, a second property, or a buy-to-let.

Understanding this distinction between buyer and seller responsibilities is essential to avoid costly misunderstandings.

Who Pays Stamp Duty: Buyer or Seller?

To reinforce: Stamp duty is always paid by the buyer, never the seller.

This holds true regardless of property type or location in England and Northern Ireland. Buyers pay SDLT based on the price paid for the property and their eligibility for any reliefs. Buyers of additional properties (second homes, investment buy-to-lets) pay an extra 3% surcharge on top of standard rates.

Sellers, on the other hand, manage costs such as estate agent fees, conveyancing/legal fees, mortgage repayment fees (if applicable), and possibly Capital Gains Tax (CGT) depending on their circumstances.

Stamp Duty Rules Explained

Stamp duty rules are straightforward but important to understand:

• Stamp duty triggers only when ownership changes hands on purchase.
• It is calculated on a tiered scale reflecting different portions of the purchase price.
• Buyers of additional residential properties pay extra surcharges.
• Exemptions or reliefs apply for first-time buyers, shared ownership schemes, and certain transfers.
• Whilst the rates and threshold vary, the seller does not pay stamp duty under any circumstances.
• Different tax systems apply in Scotland (Land and Buildings Transaction Tax – LBTT) and Wales (Land Transaction Tax – LTT).

To understand mortgages and stamp duty better, including whether you can add it to your mortgage, see: Can I Add Stamp Duty to My Mortgage?.

Stamp Duty vs Capital Gains Tax

Many sellers confuse stamp duty with Capital Gains Tax (CGT), but they are very different:

• Stamp Duty: Paid by the buyer at purchase.
• Capital Gains Tax: Potential tax paid by the seller on profit from the sale.

CGT applies when you sell a property that is not your main residence (e.g., second home, buy-to-let), taxing the gain you make after deducting allowable costs like purchase price and improvements.

Your main residence typically qualifies for Private Residence Relief, meaning no CGT is due for most sellers.

The tax rates for CGT on residential property gains are currently 18% for basic rate taxpayers and 28% for higher-rate taxpayers (subject to the Annual Exempt Amount).

It’s crucial as a seller to understand your CGT liability, obligations to report gains to HMRC (usually within 60 days of sale), and permissible reliefs to avoid unexpected surprises.

Property Selling Costs and Taxes When Selling a House

Even though you never pay stamp duty when selling, you will encounter several other costs and potential taxes:

• Estate Agent Fees: Typically 1%-3% plus VAT on the sale price.
• Solicitor or Conveyancer Fees: Cover the legal transfer of ownership.
• Mortgage Exit Fees: Early repayment charges if settling your mortgage early.
• Energy Performance Certificate (EPC): Required before marketing your home.
• Capital Gains Tax: If applicable for second homes or investment properties.
• Repairs and Home Staging Costs: Optional but can enhance market readiness.
• Moving Expenses: Costs for relocation and related services.

For a detailed look at what estate agents do and how they assist sellers, view: What Do Estate Agents Do?.

Information about selling leasehold properties, which may impact your sale, can also be important: What Happens When a Leasehold Expires?.

How Long Does It Take to Sell a House?

Selling property is not an instant process. From listing your property to receiving an offer and reaching completion, expect several weeks to a few months depending on market conditions, property attractiveness, and buyer interest.

Understanding the timeline helps you manage expectations and plan financially. More details here: How Long Does It Take to Sell a House?.

Financial Planning: Repaying Your Mortgage and Other Considerations

Most sellers use proceeds to repay their mortgage. If you have a repayment mortgage (common mortgage type), your monthly payments reduce the principal over time, which impacts what you owe upon sale completion.

Learn more about repayment mortgages here: What Is a Repayment Mortgage?.

Your property’s location can also affect demand and pricing. For example, London is divided into fare pricing zones influencing desirability. Interested? See: What Zone Is Hammersmith?.

Summary and Final Advice

• You do not pay stamp duty when you sell a house. The buyer pays stamp duty on purchase.
• Sellers face other costs including estate agent fees, legal fees, mortgage exit fees, potential Capital Gains Tax, and moving expenses.
• Understanding stamp duty vs capital gains tax clarifies your financial responsibilities.
• Knowing stamp duty rules ensures sellers and buyers clearly understand who pays what.
• Use trusted estate agents and professional advice for navigating your property sale smoothly.
• Consult resources and guides for deeper insights from trusted UK property experts such as PRYE.

Selling a home can be a complex but rewarding experience with the right knowledge and advisors. For expert guidance and insights into buying, selling, and financing property, explore the wider PRYE blog library and services a This blog aims to provide a clear, thorough understanding of stamp duty’s role in UK property sales so sellers can confidently approach their sale without confusion or costly mistakes.