When and How You Pay Stamp Duty
Stamp duty is triggered on completion, paid within 14 days, and handled by your solicitor. Here is exactly when it is due, who pays it, and what happens at each stage of buying a property.
Stamp Duty Payment Timeline
Exchange
Contracts become binding
You are committed to buy, but no stamp duty is due yet
Day 0
Completion
Ownership transfers and your stamp duty liability begins
Day 1 to 14
Payment window
Your solicitor files the SDLT return and pays the tax
Day 14
Deadline
Late filing penalties start if the return is not submitted
After payment
Land Registry
The SDLT5 certificate lets the property be registered in your name
When stamp duty is due
Stamp duty is triggered on completion, not on exchange of contracts. Exchange is the point at which contracts become legally binding, but the tax liability only arises when you actually take ownership on completion day (the effective date of the transaction).
If rates change before you complete
You pay the rates in force on your completion date, not the rates that applied when you exchanged or made your offer. If a rate change lands during a long chain or a delayed conveyance, it is the completion-date rate that sets your bill. Check the current stamp duty rates before you commit to a completion date near a known change.
Who pays stamp duty
The buyer pays stamp duty, never the seller. If you are selling a property, you pay no stamp duty on the sale itself, although capital gains tax can apply if the property was not your main residence.
In practice you do not deal with HMRC yourself. Your solicitor or conveyancer is legally responsible for submitting the SDLT return and paying the tax on your behalf, using funds you provide as part of your completion statement.
How and when you pay
On completion day, ownership transfers and the 14-day clock starts. Your solicitor files the SDLT return and pays the tax to HMRC within 14 days of completion. You must file a return even if no tax is due, for example when first-time buyer relief reduces the bill to zero.
Late filing penalties
Miss the 14-day deadline and HMRC charges a £100 penalty, rising to £200 plus daily penalties after 3 months, then tax-geared penalties and interest the longer it goes unpaid. See the full breakdown in the SDLT deadlines and penalties guide.
After you have paid
Once the return is filed and the tax paid, HMRC issues an SDLT5 certificate. This certificate is what allows the property to be registered in your name, so stamp duty and Land Registry registration are directly linked: no certificate, no registration.
Keep your SDLT5 certificate and return for at least 6 years. You will need the records if you ever claim a refund, for example if you sell a previous main residence within 36 months and reclaim the additional property surcharge through the refund claim process.
Planning ahead
Budget for stamp duty as part of your total purchase costs, alongside your deposit, legal fees and survey. Because SDLT is charged in progressive bands, the price you offer can change your bill: nudging an offer just under a band threshold can save more than the few thousand pounds it appears to. See exactly how the bands work in how stamp duty is calculated, and how the cost affects your borrowing in stamp duty and mortgage affordability.
Plan Your Purchase
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