How stamp duty works
Stamp Duty Land Tax (SDLT) is paid when you buy a home or land in England or Northern Ireland. It works like income tax bands: each rate applies only to the part of the price that falls inside its band, not to the whole price. Your solicitor or conveyancer normally files the return and pays it for you within 14 days of completion.
Current rates for a home
These are the rates from April 2025, as published by HMRC:
| Part of the price | Standard rate | First-time buyer |
|---|---|---|
| Up to £125,000 | 0% | 0% |
| £125,001 to £250,000 | 2% | 0% |
| £250,001 to £300,000 | 5% | 0% |
| £300,001 to £500,000 | 5% | 5% |
| £500,001 to £925,000 | 5% | No relief: standard rates apply |
| £925,001 to £1.5 million | 10% | |
| Above £1.5 million | 12% |
If you'll own more than one home after buying, add 5% to every band. If you're not a UK resident, add another 2%.
Worked examples
Moving home, £295,000: 0% on the first £125,000, then 2% on the next £125,000 (£2,500), then 5% on the last £45,000 (£2,250). Total £4,750.
First-time buyer, £295,000: under £300,000, so £0.
Buy-to-let, £295,000: 5% on the first £125,000 (£6,250), 7% on the next £125,000 (£8,750) and 10% on £45,000 (£4,500). Total £19,500.
Who counts as a first-time buyer
You and everyone you're buying with must never have owned a home before, anywhere in the world. That includes homes you inherited. The property must be your main home and cost £500,000 or less. If you're buying with a partner who has owned before, you can't claim the relief.
Scotland and Wales
This calculator is for England and Northern Ireland only. Scotland has Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT). Both have their own bands and rates.
Please note: this covers ordinary residential purchases. Shared ownership, new leases, companies, and buying six or more homes at once all have their own rules. Your conveyancer will confirm the exact amount.
Frequently asked questions
Do I pay the 5% surcharge if I'm replacing my home?
Not if the new home replaces your main residence and the old one has been sold. If you haven't sold it by completion, you pay the higher rates but can claim a refund if you sell it within 36 months.
Is stamp duty paid on homes under £40,000?
No. Purchases under £40,000 don't need a return, and the additional property surcharge doesn't apply to them.
Can I add stamp duty to my mortgage?
It's due within 14 days of completion, so most buyers pay it from savings. Some borrow more to cover it, but that means paying interest on it for years. Our mortgage calculator shows the difference.