You’ve found the place. Offer accepted. Solicitor instructed. Then someone mentions the stamp duty bill and a number arrives that you weren’t quite ready for. It happens more often than you’d think — not because buyers are careless, but because stamp duty sits in that awkward category of costs people know exist without really knowing how they work. So here’s how it actually works, and you can jump straight to the stamp duty calculator to work out your own bill.
What Is Stamp Duty Land Tax?
Stamp duty land tax — SDLT — is a tax paid to HMRC when you buy a property in England or Northern Ireland above a certain price. You pay it within 14 days of completion, and your solicitor handles the submission, though the cost is yours. Scotland and Wales operate their own equivalents: Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) respectively. This post covers England and Northern Ireland only.
The name is an anachronism. There’s no actual stamp, no deed being pressed with wax. It’s simply a purchase tax, calculated as a percentage of what you pay for a property, applied in bands — much like income tax. You don’t pay the higher rate on the entire purchase price, only on the portion that falls within each band.
How Is Stamp Duty Calculated?
You pay each rate only on the slice of the purchase price that falls within that band, not on the total. Think of it like income tax brackets: the rate changes as the price crosses each threshold, but only the portion above that threshold is taxed at the higher rate.
The standard rates below apply to a UK-resident buyer purchasing a main home in England or Northern Ireland who is not a first-time buyer:
| Purchase price band | Standard rate | Tax on the full band | Total tax at top of band |
|---|---|---|---|
| Up to £125,000 | 0% | £00% of £125,000 | £0at £125,000 |
| £125,001 – £250,000 | 2% | £2,5002% of £125,000 | £2,500at £250,000 |
| £250,001 – £925,000 | 5% | £33,7505% of £675,000 | £36,250at £925,000 |
| £925,001 – £1,500,000 | 10% | £57,50010% of £575,000 | £93,750at £1,500,000 |
| Above £1,500,000 | 12% | £12,000 per £100,00012% of everything above £1,500,000 | £93,750at £1,500,000, then 12% above |
So on a £400,000 purchase, the calculation runs: nothing on the first £125,000, 2% on the next £125,000 (£2,500), and 5% on the remaining £150,000 (£7,500) — a total of £10,000. HMRC’s official SDLT guidance also includes a calculator if you want to check a specific figure.
Stamp Duty Calculator 2026/27
Rather than working through the bands by hand, use the calculator below — enter the purchase price, select your buyer type and see exactly what you’d owe, broken down by band.
Buyer type
| Band | Rate | Tax |
|---|---|---|
| Up to £125,000 | 0% | £0 |
| £125,001 – £250,000 | 2% | £2,500 |
| £250,001 – £450,000 | 5% | £10,000 |
Stamp duty is cash on top of your deposit. If you want the whole purchase checked before you make an offer — deposit, fees, and the mortgage itself — have a conversation with us.
Do First-Time Buyers Pay Less?
First-time buyers pay no stamp duty on the first £300,000 of a property’s price, provided the property costs no more than £500,000. This relief applies to buyers who have never owned a residential property anywhere in the world — not just in the UK. If you’re buying with someone else, every buyer must be a first-time buyer: one previous owner on the purchase means the relief is lost.
On a £500,000 purchase, a first-time buyer pays 5% on the £200,000 above the £300,000 threshold — a bill of £10,000, compared to £15,000 for a standard buyer. On purchases below £300,000, first-time buyers pay nothing at all. If the property costs more than £500,000, the relief disappears entirely and standard rates apply from the first pound.
| Purchase price band | First-time buyer rate | Tax on the full band |
|---|---|---|
| Up to £300,000 | 0% | £00% of £300,000 |
| £300,001 – £500,000 | 5% | £10,0005% of £200,000 |
| Above £500,000 | Standard rates | No reliefstandard rates apply from the first pound |
What About Second Homes and Buy-to-Let Properties?
Anyone buying an additional residential property — whether a buy-to-let, a holiday home, or a second home — pays a 5% surcharge on top of the standard rates across every band, on purchases of £40,000 or more. That surcharge rose from 3% to 5% on 31 October 2024, so older articles and calculators quoting 3% are out of date.
| Purchase price band | Standard rate | Additional property | Tax on the full band (additional) |
|---|---|---|---|
| Up to £125,000 | 0% | 5%0% + 5% | £6,2505% of £125,000 |
| £125,001 – £250,000 | 2% | 7%2% + 5% | £8,7507% of £125,000 |
| £250,001 – £925,000 | 5% | 10%5% + 5% | £67,50010% of £675,000 |
| £925,001 – £1,500,000 | 10% | 15%10% + 5% | £86,25015% of £575,000 |
| Above £1,500,000 | 12% | 17%12% + 5% | £17,000 per £100,00017% of everything above £1,500,000 |
In practice: a £300,000 second home costs £20,000 in stamp duty, against £5,000 for the same property bought as a main residence.
If you’re buying a new home before selling your existing one, you’ll trigger the surcharge at completion. You can reclaim it if you sell your previous main residence within three years — but you have to apply for the refund, within 12 months of the sale (or 12 months after the filing date of your new home’s return, if that’s later). It won’t happen automatically.
Does Stamp Duty Apply to Non-UK Buyers?
Non-UK residents buying residential property in England or Northern Ireland pay an additional 2% surcharge on top of the standard rates — or on top of the additional property surcharge if that also applies. This came into effect in April 2021 and applies regardless of whether you’re buying as a main residence or an investment. The two surcharges stack, so a non-UK resident buying an additional property pays 7% on top of the standard rates. For individuals, you’re generally treated as non-UK resident if you spent fewer than 183 days in the UK in the 12 months before completion. If you’re buying with someone else the test can apply to each buyer, so it’s worth taking advice if you’ve spent time outside the UK.
| Purchase price band | Standard | Non-UK resident | Additional + non-UK resident |
|---|---|---|---|
| Up to £125,000 | 0% | 2%0% + 2% | 7%0% + 5% + 2% |
| £125,001 – £250,000 | 2% | 4%2% + 2% | 9%2% + 5% + 2% |
| £250,001 – £925,000 | 5% | 7%5% + 2% | 12%5% + 5% + 2% |
| £925,001 – £1,500,000 | 10% | 12%10% + 2% | 17%10% + 5% + 2% |
| Above £1,500,000 | 12% | 14%12% + 2% | 19%12% + 5% + 2% |
When Is Stamp Duty Due?
SDLT must be paid within 14 days of completion. Your solicitor will almost always handle the payment directly, deducting it from the funds you send them ahead of completion. The 14-day window is strict — late filing attracts automatic penalties and interest from HMRC. In practice, if your conveyancer is on the ball, you won’t need to think about the deadline at all. But it’s worth confirming who’s responsible for submission before completion day.
Can You Add Stamp Duty to Your Mortgage?
Most lenders won’t let you borrow to cover stamp duty — it’s considered a purchase cost, not part of the property’s value. You’ll typically need the funds available in cash. A small number of lenders allow a slightly higher loan relative to purchase price if there are valid reasons, but this isn’t a mainstream route and shouldn’t be planned around. Budget for stamp duty as a cash cost from the outset.
In Summary
Stamp duty land tax applies in England and Northern Ireland to residential purchases above £125,000, calculated in bands rather than as a flat rate on the full price. First-time buyers benefit from meaningful relief, paying nothing on the first £300,000 — up to a maximum property value of £500,000, above which standard rates apply in full. Buyers of additional properties pay a 5% surcharge across every band, and non-UK residents pay a further 2% on top. You have 14 days from completion to pay, and your solicitor handles the submission. Stamp duty must be funded from cash — it cannot routinely be added to a mortgage. The calculator above shows your own figure band by band, and understanding the bill before you make an offer is far better than discovering it afterwards.
Frequently Asked Questions
What is stamp duty land tax?
Stamp duty land tax (SDLT) is a tax charged by HMRC on the purchase of property and land in England and Northern Ireland. It’s calculated in bands on the purchase price and must be filed and paid within 14 days of completion, with your solicitor typically handling both on your behalf.
How much stamp duty will I pay on a £300,000 property?
A standard buyer pays £5,000 stamp duty on a £300,000 property: 2% on the £125,000 between £125,001 and £250,000 (£2,500), plus 5% on the remaining £50,000 (£2,500). A first-time buyer pays nothing, as £300,000 is exactly the first-time buyer nil-rate threshold. Someone buying it as an additional property pays £20,000.
Do first-time buyers pay stamp duty?
First-time buyers pay no stamp duty on properties priced up to £300,000, and 5% on the portion between £300,001 and £500,000. If the property costs more than £500,000, the standard rates apply in full with no relief. Relief only applies if every buyer on the purchase is a first-time buyer, so buying jointly with someone who has owned a home before means you lose it.
What is the additional property stamp duty surcharge?
Buyers purchasing a second or subsequent residential property, including buy-to-let investments and holiday homes, pay an extra 5% on top of the standard SDLT rates across every band. The surcharge applies to purchases of £40,000 or more, and increased from 3% to 5% on 31 October 2024.
Can I reclaim stamp duty if I sell my old home?
Yes, you can reclaim the 5% additional property surcharge if you bought a new main home before selling your previous one, provided you sell the old property within three years of completing on the new one. You must claim from HMRC within 12 months of the sale, or 12 months after the filing date of your new home’s return, whichever is later. The refund is not issued automatically.
Does stamp duty apply to non-UK residents?
Yes. Non-UK residents buying residential property in England or Northern Ireland pay an additional 2% surcharge on top of whatever standard or additional-property rates already apply. For this purpose you are generally treated as a non-UK resident if you spent fewer than 183 days in the UK in the 12 months before completion. If you are buying with someone else, the test can apply to each buyer.
When do I have to pay stamp duty?
SDLT must be filed and paid within 14 days of completion. Your solicitor will normally handle both the payment and the HMRC return as part of the conveyancing process, using funds you transfer to them before completion day.
Can stamp duty be added to a mortgage?
In most cases, no. Lenders treat stamp duty as a transaction cost rather than part of the property’s value, so it sits outside the mortgage. You should plan to fund it from cash savings alongside your deposit and legal fees. If you’re working out how much to borrow and how much cash you’ll need, speak to our mortgage advisers.
Is stamp duty different in Scotland and Wales?
Yes. Scotland charges Land and Buildings Transaction Tax (LBTT) and Wales charges Land Transaction Tax (LTT). Both operate on similar banded principles but with different thresholds and rates. This page covers England and Northern Ireland only. If you’re buying in Scotland or Wales, seek advice specific to those regimes.
What happens if stamp duty is paid late?
If the SDLT return is filed after the 14-day deadline, HMRC applies automatic penalties, starting at £100, and charges interest on any unpaid tax. A competent conveyancer will always ensure payment is made on time, but it’s worth confirming the arrangement with your solicitor before completion.
