Stamp Duty Land Tax (SDLT) is the tax you pay when you buy property or land in England or Northern Ireland. Most home movers currently pay nothing on the first £125,000 of the purchase price, and first-time buyers pay nothing up to £300,000 — above those thresholds, the tax is charged in slices, with higher rates applying only to the portion of the price within each band.
That banding system is the single most misunderstood thing about stamp duty, and it’s good news: crossing a threshold doesn’t mean your whole purchase is taxed at the higher rate — only the part above the line. Here’s everything you need to know, with worked examples and no jargon.
What is stamp duty and how does it work?
Stamp duty — officially Stamp Duty Land Tax — is a government tax on the purchase of property or land in England and Northern Ireland. It applies to both freehold and leasehold properties, and it makes no difference whether you’re buying with cash or a mortgage: the tax is calculated on the purchase price, not on how you fund it.
It works like income tax, in bands. The first slice of the price is taxed at 0%, the next slice at a low rate, and so on up the price. So on a £400,000 home, you don’t pay one flat rate on the whole £400,000 — you pay nothing on the first slice, a little on the next, and more only on the top portion.
Scotland and Wales have their own, separate property taxes with different names, bands and rates — more on those below.
What are the current stamp duty rates?
The thresholds changed on 1 April 2025, when the temporary increases introduced by a previous government expired. In practical terms: the nil-rate threshold for home movers dropped from £250,000 back to £125,000, and first-time buyer relief dropped from £425,000 back to £300,000 — so many buyers now pay more than they would have before April 2025.
Here are the standard rates for home movers in England and Northern Ireland:
| Property price | Stamp duty rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5 million | 10% |
| Over £1.5 million | 12% |
Remember: each rate applies only to the portion of the price inside that band.
Stamp duty rates and thresholds can change at Budgets and other fiscal events, so treat any table — including this one — as a snapshot. Our stamp duty calculator is kept up to date and does the maths for you in seconds.
How much stamp duty will I pay? Worked examples
Example 1: a home mover buying at £295,000
- 0% on the first £125,000 = £0
- 2% on the next £125,000 = £2,500
- 5% on the final £45,000 = £2,250
- Total stamp duty: £4,750
Example 2: a home mover buying at £400,000
- 0% on the first £125,000 = £0
- 2% on the next £125,000 = £2,500
- 5% on the remaining £150,000 = £7,500
- Total stamp duty: £10,000
Notice how the £400,000 buyer pays an effective rate of just 2.5% overall, even though part of the price sits in the 5% band. That’s the banding system working in your favour.
Do first-time buyers pay stamp duty?
Often, no — first-time buyer relief is one of the most valuable perks of buying your first home. In England and Northern Ireland:
| Price of your first home | What you’ll pay |
|---|---|
| Up to £300,000 | 0% — no stamp duty at all |
| £300,001 – £500,000 | 5% on the portion above £300,000 |
| Over £500,000 | No relief — standard rates apply to the whole purchase |
Example: a first-time buyer purchasing at £500,000
- 0% on the first £300,000 = £0
- 5% on the remaining £200,000 = £10,000
- Total stamp duty: £10,000
Two things catch people out. First, the relief has a cliff edge: pay £500,001 and you lose the relief entirely, with the standard home-mover rates applying to the whole price instead. Second, to qualify you must never have owned a residential property before — anywhere in the world — and if you’re buying jointly, that generally applies to both of you.
If you’re working out your overall buying budget, our first-time buyer guide covers deposits, borrowing and the full journey — and our first-time buyer page explains how we help.
What’s the extra stamp duty on second homes and buy-to-lets?
If you already own a home and you’re buying another — a buy-to-let, a holiday home, or any additional residential property — you’ll pay an extra 5% on top of the standard rates in every band. The surcharge applies to additional properties costing more than £40,000.
Because the surcharge hits every band (including the portion that would otherwise be tax-free), it adds up quickly:
Example: buying a £295,000 buy-to-let when you already own a home
- Standard stamp duty (as Example 1 above) = £4,750
- Additional 5% surcharge on the full £295,000 = £14,750
- Total stamp duty: £19,500
If you’re weighing up an investment property, that’s a number you want in your budget from day one — not a surprise at completion.
One scenario worth knowing about: if you’re buying a new main home before selling your old one, you’ll usually have to pay the surcharge upfront because you briefly own two properties — but you may be able to claim it back once your previous main home sells, provided the sale happens within the permitted window. Your solicitor can confirm whether you qualify and handle the refund claim.
Is stamp duty different in Scotland and Wales?
Yes — neither charges SDLT at all. Each nation runs its own property tax with different names, thresholds and rates:
- Scotland charges Land and Buildings Transaction Tax (LBTT). The bands start lower than England’s — tax kicks in above £145,000 for home movers — but first-time buyers get relief up to £175,000, and the additional-property surcharge is steeper at 8%.
- Wales charges Land Transaction Tax (LTT). Nothing is payable up to £225,000 — a higher starting threshold than England’s — but there’s no first-time buyer relief at all, and higher rates on additional properties can reach up to 17% on the most expensive bands.
The full, current band tables for all three systems are on our stamp duty calculator page — pick your nation and it handles the rest.
When do you pay stamp duty — and who pays it?
The buyer pays stamp duty — never the seller. It’s due after your purchase completes, and the return must be filed and the tax paid within 14 days of completion.
In practice you’ll rarely touch this yourself: your solicitor or conveyancer almost always files the return and pays HMRC on your behalf as part of completion, collecting the money from you alongside their fees. Just make sure the cash is ready — stamp duty is paid at completion, so it needs to sit in your budget alongside your deposit and legal fees rather than being an afterthought.
One more wrinkle: non-UK resident buyers usually pay an additional surcharge on top of the rates above. If that might apply to you, check the position on gov.uk or run the numbers through our calculator.
Can you avoid paying stamp duty?
If stamp duty is due on your purchase, there’s no legal way to dodge it — and you should be deeply sceptical of anyone who claims otherwise. That said, you may legitimately pay less, or nothing, if:
- The price is below the relevant threshold;
- You qualify for first-time buyer relief;
- The property is transferred as part of a divorce or the dissolution of a civil partnership;
- You inherit the property through a will.
Timing and structuring a purchase around tax is a matter for your solicitor or a tax adviser — but making sure you’ve claimed the reliefs you’re genuinely entitled to is simply good housekeeping.
Will stamp duty change again?
Quite possibly. Stamp duty is a favourite lever at Budgets — the thresholds have moved several times in recent years, most recently in April 2025 — and governments of every stripe have tinkered with it. We won’t speculate on what comes next, but the practical advice is simple: check the current figures when you’re actually ready to buy, not months in advance, and don’t base a purchase decision on rumoured changes. Our stamp duty calculator is kept up to date with the current rules.
Stamp duty FAQs
How much is stamp duty on a £300,000 house?
For a home mover in England or Northern Ireland: £0 on the first £125,000, £2,500 on the next £125,000 (at 2%), and £2,500 on the final £50,000 (at 5%) — £5,000 in total. For a qualifying first-time buyer: nothing at all, as £300,000 sits exactly on the relief threshold.
Who counts as a first-time buyer for stamp duty relief?
Someone who has never owned a residential property before, anywhere in the world. If you’re buying jointly, you’ll generally both need to qualify. Previous ownership of commercial property doesn’t usually count against you.
When does stamp duty have to be paid?
Within 14 days of completion. Your solicitor or conveyancer normally files the return and pays HMRC for you as part of the completion process.
Can I add stamp duty to my mortgage?
Not directly — it’s due in cash shortly after completion. Some buyers take a slightly larger mortgage to free up savings for the tax, but that increases your loan, your interest costs and your loan-to-value ratio, and depends on the lender’s affordability checks. It’s a trade-off worth discussing with an adviser before you commit.
Do I pay stamp duty every time I move?
If tax is due on the purchase, yes — stamp duty applies to each qualifying property purchase, and first-time buyer relief is only available once. That’s why it’s worth factoring into the cost of any move, not just your first.
How do I work out exactly what I’ll pay?
Use our stamp duty calculator — enter the price, tell it whether you’re a first-time buyer or buying an additional property, and it gives you the figure instantly, with current rates for England & Northern Ireland, Scotland and Wales.
Budgeting for your whole purchase?
Stamp duty is just one line in your buying budget — alongside your deposit, legal fees and survey costs. If you’d like help putting the full picture together, our advisers search over 100 lenders and thousands of deals and will talk you through the real, all-in cost of your move in plain English. The initial chat is free and there’s no obligation. You can also get a quick feel for your borrowing power with our borrowing calculator.
Book a no-obligation chat — we’ll help you plan ahead and avoid the nasty surprises.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances.
The FCA does not regulate some forms of Buy to Lets.
This article is for general information only and does not constitute financial, legal or tax advice. Stamp duty rates and thresholds can change at fiscal events — always check the current figures before committing to a purchase, and speak to an adviser about your own circumstances.
Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
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