Do You Pay Stamp Duty When You Sell a House? Complete Guide for UK Homeowners

When selling a property in the UK, homeowners often worry about hidden costs. One of the biggest questions sellers ask is: do you pay stamp duty when you sell a house? The short answer is no—stamp duty is not a seller’s cost. It is the buyer’s responsibility. But that’s not the full story. Selling a house involves other taxes and fees you should understand before listing your property. This complete guide will walk you through everything UK homeowners need to know about stamp duty, capital gains tax, selling costs, and smart ways to save money.

For an in-depth breakdown, see this detailed article on do you pay stamp duty when you sell a house.

What Is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a tax that buyers in England and Northern Ireland pay when purchasing property above a certain price. In Scotland, it’s known as the Land and Buildings Transaction Tax (LBTT), and in Wales, it’s the Land Transaction Tax (LTT). The exact amount depends on the purchase price of the property, whether the buyer is a first-time buyer, and whether it’s a primary home or an additional property such as buy-to-let or second homes.

Do Sellers Pay Stamp Duty?

Sellers do not pay stamp duty. The buyer always pays it as part of their purchase costs. As a seller, stamp duty won’t be on your expense list. However, you will face other charges which we will cover in detail.

Who Pays Stamp Duty: Buyer or Seller?

The buyer is responsible for stamp duty. Once the property sale completes, the buyer, usually through their solicitor or conveyancer, must submit the payment to HMRC within 14 days. If the buyer fails to pay on time, they risk penalties and interest charges. Sellers have no involvement with this process.

Stamp Duty vs Capital Gains Tax

A common source of confusion is mixing up stamp duty with capital gains tax (CGT). They are very different. Stamp Duty is a one-time tax paid by the buyer when purchasing property. Capital Gains Tax is a tax the seller may need to pay on the profit made from selling a property that is not their main residence.

Example:

You bought a second home for £200,000. You sell it later for £280,000. Your profit is £80,000. Depending on your tax band, you may pay 18% or 28% CGT on that gain, after allowances. If it’s your main residence, you’re usually exempt from CGT due to Private Residence Relief.

Property Selling Costs for Homeowners

Even though sellers don’t pay stamp duty, there are several costs involved in selling a house.

1. Estate Agent Fees

Traditional estate agents typically charge 1%–3% of the final sale price plus VAT. On a £350,000 home, that could mean £3,500–£10,500. One way to save money is by working with online estate agents. They often charge a lower fixed fee instead of a percentage, meaning you keep more profit from your sale.

2. Conveyancing Fees

A solicitor or licensed conveyancer will handle the legal side of selling. Expect to pay around £800–£1,500 depending on complexity.

3. Energy Performance Certificate (EPC)

An EPC is legally required for all properties sold in the UK. This usually costs between £60–£120.

4. Removal Costs

Hiring movers can cost between £500–£1,500 depending on distance and the volume of belongings.

5. Mortgage Exit Fees

If you are repaying a mortgage early, your lender may charge an early repayment charge, often 1%–5% of the remaining balance.

6. Capital Gains Tax

If you are selling a second home, buy-to-let, or holiday home, CGT might apply. Rates are 18% for basic rate taxpayers and 28% for higher rate taxpayers.

Stamp Duty Rules Explained

To fully understand the difference between buyer and seller responsibilities, here are some key stamp duty rules. It applies only to buyers. Sellers never pay SDLT. First-time buyers get relief, paying less or nothing on properties up to £425,000. Additional properties are taxed higher, with buyers paying an extra 3% on top of the standard rates. Different rules apply across the UK since Scotland and Wales set their own tax thresholds and rates.

Common Myths About Stamp Duty When Selling

Myth 1: Sellers must pay stamp duty. Fact: Buyers pay it, not sellers. Myth 2: Stamp duty is the same as capital gains tax. Fact: Stamp duty is paid by the buyer; CGT may apply to the seller if it’s not their main home. Myth 3: Stamp duty applies everywhere equally. Fact: Scotland and Wales have their own systems. Myth 4: Sellers can’t reduce their costs. Fact: Choosing online estate agents can lower your selling fees significantly.

Case Study: Selling a Home in London

Property value: £500,000
 Seller’s costs:

  • Estate agent fees (traditional, 1.5%): £7,500

  • Solicitor: £1,200

  • EPC: £80

  • Removal: £1,000
     Total Seller Costs = £9,780

Buyer’s costs:

  • Stamp duty on £500,000 (standard buyer): £15,000

  • Solicitor: £1,500

  • Survey: £600

  • Mortgage fees: £1,000
     Total Buyer Costs = £18,100

This clearly shows that stamp duty is a buyer’s cost.

How to Reduce the Costs of Selling

Compare estate agents. Don’t go with the first one you find—shop around. Use online estate agents. They often save sellers thousands in commission fees. Plan your move early to secure better rates from removal companies. Check for CGT exemptions since you may qualify for relief if the property was once your main home. Pay off mortgages strategically to avoid early repayment charges where possible.

FAQs: Do You Pay Stamp Duty When You Sell a House?

Q1: Do sellers ever pay stamp duty in the UK? No, sellers never pay it. Buyers are always responsible.
 Q2: What taxes might a seller pay instead? Capital Gains Tax for non-primary residences, plus legal and estate agent fees.
 Q3: Can stamp duty be added to the buyer’s mortgage? Yes, buyers can sometimes add it to their mortgage, though it means paying interest long term.
 Q4: Do stamp duty rules change often? Yes. Rates and thresholds are adjusted by the government periodically.
 Q5: How can sellers reduce their costs? By using online estate agents, comparing legal fees, and planning for removal costs in advance.

Final Thoughts

So, do you pay stamp duty when you sell a house? The answer is no. Stamp duty is the buyer’s responsibility. As a seller, you won’t face stamp duty costs, but you should prepare for estate agent fees, solicitor costs, removal charges, and potentially Capital Gains Tax. By understanding the true costs of selling and considering smarter options like online estate agents, you will be better prepared, save money, and keep more of your profit from the sale. For a detailed breakdown, check this guide on do you pay stamp duty when you sell a house.

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