Stamp duty UK — rates, thresholds, and how to calculate your bill
Stamp Duty Land Tax (SDLT) is paid by the buyer on any residential property purchase in England and Northern Ireland. This guide covers the current rates, first-time buyer relief, the second home surcharge, and worked examples so you can calculate exactly what you will owe.
Current stamp duty rates — England and Northern Ireland
Rates apply to the portion of the property price within each band, not the full price.
| Property price band | Standard rate | First-time buyer | Additional property |
|---|---|---|---|
| Up to £250,000 | 0% | 0% | 5% |
| £250,001 – £425,000 | 5% | 0% (FTB relief) | 10% |
| £425,001 – £625,000 | 5% | 5% | 10% |
| £625,001 – £925,000 | 5% | Standard rates apply | 10% |
| £925,001 – £1,500,000 | 10% | Standard rates apply | 15% |
| Over £1,500,000 | 12% | Standard rates apply | 17% |
Scotland uses LBTT and Wales uses LTT — different rates apply. See the relevant guidance from Revenue Scotland or the Welsh Revenue Authority.
How stamp duty is calculated
Stamp duty is charged in bands — you pay the rate for each band on the portion of the price within that band only, not on the whole price. This is exactly how income tax works.
Example: Standard buyer, £400,000 property
Example: First-time buyer, £400,000 property
A first-time buyer saves £7,500 on the same property compared to a standard buyer.
Worked examples at common price points
| Property price | Standard buyer | First-time buyer | Second home |
|---|---|---|---|
| £200,000 | £0 | £0 | £10,000 |
| £300,000 | £2,500 | £0 | £17,500 |
| £400,000 | £7,500 | £0 | £27,500 |
| £500,000 | £12,500 | £8,750* | £37,500 |
| £600,000 | £17,500 | Standard | £47,500 |
| £750,000 | £25,000 | Standard | £62,500 |
| £1,000,000 | £43,750 | Standard | £93,750 |
| £1,500,000 | £91,250 | Standard | £166,250 |
*FTB relief on £500,000: 0% on £425,000 + 5% on £75,000 (£425,001–£500,000) = £3,750. Standard rate for FTB above £625,000. Second home = standard rate + 5% surcharge on all bands. Always verify with your solicitor.
First-time buyer relief — the key rules
Both buyers must be first-time buyers
If you are buying jointly and one of you has previously owned a property anywhere in the world, neither buyer qualifies for first-time buyer relief.
The property must cost £625,000 or less
If the purchase price exceeds £625,000, standard stamp duty rates apply in full — there is no partial relief.
It must be your main residence
The property must be purchased as your primary home. Buy-to-let purchases do not qualify for first-time buyer relief.
Inherited property counts
If you have ever inherited a residential property — even if you never lived in it and even if you sold it immediately — you may not qualify as a first-time buyer.
The additional property surcharge (second homes and buy-to-let)
If you are buying a second home, holiday property, or buy-to-let, you pay an additional 5% surcharge on top of the standard SDLT rate on all bands. This applies even if the second property is lower in value than your main residence.
The surcharge also applies if you complete on a new purchase before selling your existing home. If you sell your main residence within 3 years, you can apply to HMRC for a refund of the surcharge.
Example: Buying a £350,000 buy-to-let
Scotland and Wales — different tax systems
Scotland
Land and Buildings Transaction Tax (LBTT)
Different rates and thresholds to SDLT. First-time buyer relief applies to the first £175,000. Additional dwelling supplement (ADS) of 6% applies.
View official guidance →Wales
Land Transaction Tax (LTT)
Different rates and thresholds to SDLT. No residential nil-rate threshold as of 2024. Higher rates apply for additional residential properties.
View official guidance →Common stamp duty questions
Does the seller pay stamp duty?
No — stamp duty is paid by the buyer, not the seller. Sellers typically pay estate agent fees, conveyancing costs, and any capital gains tax if applicable.
When do I pay stamp duty?
Stamp duty must be paid within 14 days of completion. In practice, your solicitor or conveyancer handles the payment from the completion funds — you will not need to think about it on the day.
Can stamp duty be added to a mortgage?
Most lenders will not lend to cover stamp duty — it is treated as a buying cost that must be funded separately. Some will include it in the loan, but this is the exception. Budget for it as a separate upfront cost.
Is there stamp duty relief for shared ownership?
Yes. Buyers of shared ownership properties can elect to pay stamp duty on the full market value upfront, or only on the share they are purchasing. The full-value election avoids paying stamp duty again when you staircase. First-time buyer relief may also apply.
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