Who Pays Stamp Duty?
Buyer or Seller - The Definitive Answer
Quick Answer: The buyer always pays stamp duty. The seller has no stamp duty obligations.
In this article
The Simple Rule
In all UK property transactions, the buyer pays stamp duty. This is a fundamental rule that applies regardless of:
- The property price
- Whether it's residential or commercial
- The buyer's circumstances (first-time buyer, investor, etc.)
- The location (England, Scotland, Wales, or Northern Ireland)
Buyer vs Seller Responsibilities
| Tax/Cost | Buyer Pays | Seller Pays |
|---|---|---|
| Stamp Duty (SDLT/LBTT/LTT) | Yes | No |
| Capital Gains Tax | No | Maybe* |
| Conveyancing Fees | Own fees | Own fees |
| Estate Agent Fees | No | Yes |
| Land Registry Fee | Yes | No |
*CGT only applies to investment properties or second homes, not your main residence.
Why the Buyer Pays
Stamp duty is a tax on the acquisition of property, not on the sale. The logic is:
- • The buyer is gaining an asset (the property)
- • The tax is on the transfer of ownership to the new owner
- • Without payment, the Land Registry won't register the new owner
Can the Seller Help?
While unusual, a seller could theoretically offer to contribute towards the buyer's stamp duty as part of negotiations. However:
- This would typically come as a price reduction instead
- The legal liability still rests with the buyer
- HMRC will still collect from the buyer if unpaid
What About Gifted Deposits?
If a family member gifts you money for the deposit, this doesn't change who pays stamp duty. The buyer (you) remains responsible for the SDLT payment, regardless of where your purchase funds come from.
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.