Stamp duty when you pay the seller’s estate agent fee
Seller’s estate agent fees and SDLT
If your contract makes you pay the seller’s estate agent fee, HMRC says it is added to the amount used for SDLT.
- Check the contract, not only the advertised price.
- Include the fee and VAT where the contract requires payment.
- Keep the contract and estate agent invoice.
Scroll down for the full analysis.
Read the original guidance here:
Stamp duty when you pay the seller’s estate agent fee
When your purchase contract makes you pay the seller’s estate agent fee, add that fee to the figure used for stamp duty land tax (SDLT). It is not a separate moving cost. Even a modest fee can change the total used to work out SDLT.
What this rule is about
A property listing’s price does not always tell the whole story, because SDLT also considers the value you give as part of the deal for the property. That is the test.
When the contract shifts one of the seller’s bills to you, that matters. Even when the estate agent acted for the seller, your payment can count.
What the official source says
HMRC’s manual gives a simple example. Although it is HMRC guidance rather than law, the example reflects the statutory rules on amounts counted for SDLT.
- The agreed house price is £248,000.
- The contract requires the buyer to pay the seller’s estate agent fee.
- That fee is £2,500, including VAT.
- HMRC says the total amount counted is £250,500.
What this means in practice
Your conveyancer should not enter only the headline price if the contract puts this bill on you. For SDLT, the full bargain matters: the stated price together with every payment that, under the contract or another agreement, you agreed to make for the seller. Check the paperwork.
- Keep the signed contract and any relevant side agreement.
- Keep the agent’s invoice, which should show the fee and VAT.
- Include the added amount in the SDLT calculation.
How to analyse it
Start with the documents, not the estate agent’s role. Ask what you are required to provide in order to buy the property.
- Is the seller’s fee named in the contract?
- Does the contract make you responsible for paying it?
- What is the fee, including VAT?
- Add that figure to the stated property price.
Example
Jo agrees to buy a house for £248,000. Her contract says she must also pay the seller’s estate agent fee of £2,500, including VAT. This produces an SDLT figure of £250,500: £248,000 plus £2,500. HMRC’s source does not calculate the tax due, so this example does not either.
Why this can be difficult in practice
Not every payment linked to a sale is included. Here, the source deals with a contractual duty to pay the seller’s fee. Where a buyer pays a bill voluntarily, or where the paperwork is unclear, the source does not explain the result that follows for SDLT. The source is silent.
- Informal arrangements may need closer examination.
- A fee excluding VAT may not be the final figure.
- The contract’s actual wording can decide the point.
Key takeaways
- A seller’s estate agent fee can increase the SDLT figure.
- It can count when your contract makes you pay it.
- The example totals £248,000 and £2,500 as £250,500.
Technical analysis
For advisers, and for anyone who wants to check the law behind this page. You do not need this section to understand the guidance above.
Legislation
- FA 2003 section 50 — sends SDLT consideration questions to Schedule 4
- FA 2003 Schedule 4 para 1 — includes direct and indirect value given for property
- FA 2003 Schedule 4 para 2 — includes VAT charged for the transaction
Official guidance
The pages below are HMRC’s guidance. Guidance is not law. It sets out how HMRC reads the legislation, and it is not binding on you, on a tribunal or on a court. Where guidance and the legislation differ, the legislation wins. HMRC can also change or withdraw guidance, and it may not cover your facts.
Where this is not settled
- The source does not address a voluntary payment of the seller’s fee or unclear informal arrangements.
- The supplied statutory text is current only to 17 November 2025. The position for a transaction after that date needs checking against current legislation.
Evidence you would need
This kind of case is decided on the facts of the individual property. These are the records that usually settle it, and the ones an adviser would ask you for.
- The signed purchase contract
- Any side agreement about payment of the seller’s fee
- The estate agent’s invoice showing the fee and VAT
Explore this with an AI
Readers often want to test their own situation. Copy the prompt below into ChatGPT, Claude or Gemini. It hands the model the actual legislation for this page rather than letting it answer from memory, and tells it to be explicit about what is uncertain. What comes back is information, not advice – check it against the links above.
I am researching UK Stamp Duty Land Tax (SDLT), which applies in England and Northern Ireland. MY QUESTION Stamp duty when you pay the seller’s estate agent fee [Replace this with your own situation: what you are buying, the price, the dates, who the buyer is, and what you plan to do with the property.] THE LAW THIS TURNS ON - FA 2003 section 50 - sends SDLT consideration questions to Schedule 4 https://www.legislation.gov.uk/ukpga/2003/14/section/50/2025-11-17 - FA 2003 Schedule 4 para 1 - includes direct and indirect value given for property https://www.legislation.gov.uk/ukpga/2003/14/schedule/4/paragraph/1/2025-11-17 - FA 2003 Schedule 4 para 2 - includes VAT charged for the transaction https://www.legislation.gov.uk/ukpga/2003/14/schedule/4/paragraph/2/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm03725 HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. Guidance from HMRC is its view of the law, not the law, and does not bind a tribunal or a court. 2. Tell me what the rule actually requires, in plain English. 3. Tell me which facts decide the answer, and which facts would change it. 4. Tell me what evidence I would need to support the position. 5. Be explicit about anything unsettled or fact-sensitive. Do not guess. 6. Your training data has a cutoff and SDLT rates and reliefs change at fiscal events. Say so if you are not sure the law is current. POINTS ALREADY KNOWN TO BE UNCERTAIN ON THIS TOPIC - The source does not address a voluntary payment of the seller's fee or unclear informal arrangements. - The supplied statutory text is current only to 17 November 2025. The position for a transaction after that date needs checking against current legislation. Do not give me a conclusion you cannot support from the provisions above.
Legislation links show Finance Act 2003 as it stood on 2025-11-17. The law may have changed since, and the rules that apply are those in force on the date of your transaction. The official guidance this page is based on is here.
This page was last updated on 1 September 2026
Useful article? You may find it helpful to read the original guidance here: Stamp duty when you pay the seller’s estate agent fee
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