Stamp Duty Explained

Stamp Duty Land Tax (SDLT) is a tax you pay when you buy property or land over a certain price in England and Northern Ireland. How much you pay depends on the purchase price, whether you are a first-time buyer, and whether you already own another property. It is charged in slices, so you only pay each rate on the part of the price that falls within that band.

In this insight we break down the current SDLT bands, first-time buyer relief, the additional-property surcharge, and what happens if you are buying in Scotland or Wales.

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Key Takeaways

• SDLT is charged in bands — you pay each rate only on the portion of the price within that band.
• The standard nil-rate band runs up to £125,000.
• First-time buyers pay no SDLT up to £300,000, and 5% on the portion from £300,001 to £500,000, with no relief above £500,000.
• Buying an additional property adds a 5% surcharge on top of the standard rates.

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The standard SDLT bands (2025/26)

For a standard residential purchase in England or Northern Ireland, the rates are:

• £0 – £125,000: 0%
• £125,001 – £250,000: 2%
• £250,001 – £925,000: 5%
• £925,001 – £1.5 million: 10%
• Over £1.5 million: 12%

Because the tax is banded, a £300,000 home is charged 0% on the first £125,000, 2% on the next £125,000 (£2,500), and 5% on the final £50,000 (£2,500) — a total of £5,000, not a flat 5% of the whole price.

Try It: Stamp Duty Calculator

Enter a purchase price to see your SDLT, and switch to the first-time buyer or additional-property options to compare.

First-time buyer relief

If you and anyone you are buying with have never owned a property, you can claim first-time buyer relief:

• 0% on the portion up to £300,000
• 5% on the portion from £300,001 to £500,000
• No relief if the purchase price is above £500,000 (you pay the standard rates instead)

These thresholds dropped from £425,000 and £625,000 on 1 April 2025, so buyers now reach the standard rates sooner. If you are early in the journey, our guide on buying a house walks through the wider process.

The additional-property surcharge

If, at the end of the transaction, you own two or more residential properties and are not replacing your main home, you pay a 5% surcharge on top of the standard rates (raised from 3% on 31 October 2024). This applies to buy-to-lets, holiday homes and second homes. Our detailed guide covers second home stamp duty, and there is a specific guide to shared ownership stamp duty if you are buying part of a home.

If you buy your new main home before selling your old one, you pay the surcharge upfront but can usually reclaim it if you sell the previous home within three years.

Buying land and other cases

SDLT can also apply to land purchases, though the rules differ from residential homes — see do you pay stamp duty on land. Non-residential and mixed-use property uses a separate set of bands.

Scotland and Wales are different

SDLT only applies in England and Northern Ireland. If you are buying elsewhere:

• Scotland uses Land and Buildings Transaction Tax (LBTT).
• Wales uses Land Transaction Tax (LTT).

Both have their own bands and their own reliefs, so the figures above do not apply there.

How and when you pay

You must file an SDLT return and pay any tax due within 14 days of completion. In practice your conveyancer usually files the return and pays the tax out of the completion funds, then includes it on their invoice.

How is stamp duty calculated?

It is banded: each rate applies only to the slice of the price within its band, then the slices are added together.

Do first-time buyers pay any stamp duty?

Not up to £300,000. Between £300,001 and £500,000 you pay 5% on the amount above £300,000. Above £500,000 the standard rates apply with no relief.

When do I have to pay it?

Within 14 days of completion. Your conveyancer normally handles the return and payment for you.

Does stamp duty apply in Scotland or Wales?

No. Scotland uses LBTT and Wales uses LTT, each with different bands.