How stamp duty works
Understand Stamp Duty Land Tax (SDLT) in England and Northern Ireland: how the bands work, who pays more, who pays less, and when the bill is due.
What is stamp duty?
Stamp Duty Land Tax (SDLT) is a tax you pay when you buy property or land above a certain price in England and Northern Ireland. It is collected by HMRC. Scotland and Wales have their own separate systems — Land and Buildings Transaction Tax (LBTT) in Scotland, and Land Transaction Tax (LTT) in Wales — with different bands.
It's charged in bands
The most important thing to understand is that SDLT is charged in bands, like income tax. You pay each rate only on the slice of the price that falls within that band — not on the whole price. A common misconception is that crossing a threshold taxes your entire purchase at the higher rate. It does not.
Standard rates (2026)
For someone buying a main home (and replacing their existing one):
| Portion of price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Worked example: £350,000 home mover
| 0% on first £125,000 | £0 |
| 2% on £125,000–£250,000 | £2,500 |
| 5% on £250,000–£350,000 | £5,000 |
| Total SDLT | £7,500 |
First-time buyer relief
First-time buyers pay no SDLT on the first £300,000, then 5% on the portion from £300,001 to £500,000. Crucially, this relief disappears entirely if the property costs more than £500,000 — above that, standard rates apply to the whole purchase.
| 0% on first £300,000 | £0 |
| 5% on £300,000–£400,000 | £5,000 |
| Total SDLT | £5,000 |
The additional property surcharge
If you buy an additional property — a second home or a buy-to-let — while keeping your main home, you pay a 5% surcharge on top of every band. This applies to purchases of £40,000 or more. The surcharge rose from 3% to 5% on 31 October 2024.
If you are buying a new main home before selling your old one, you pay the surcharge initially but can reclaim it if you sell your previous main residence within 36 months.
When and how you pay
SDLT must be paid and the return filed with HMRC within 14 days of completion. In practice, your conveyancer or solicitor almost always handles this — they deduct the tax from your completion funds, file the return, and obtain the certificate the Land Registry needs. Late filing triggers automatic penalties, so it is rarely left to the buyer directly.
Scotland and Wales have their own systems
Stamp duty as such only exists in England and Northern Ireland. Scotland and Wales replaced it with their own devolved taxes, each with different bands and rules.
Scotland — Land and Buildings Transaction Tax (LBTT)
Collected by Revenue Scotland. The nil-rate band is £145,000 (higher than England), rising through 2%, 5%, 10% and a top 12% rate above £750,000. First-time buyers get a raised nil-rate band of £175,000. The surcharge for additional properties is the Additional Dwelling Supplement (ADS), currently 8% — charged on the full purchase price, not band by band, making it the steepest second-home surcharge in the UK.
Wales — Land Transaction Tax (LTT)
Collected by the Welsh Revenue Authority. The nil-rate band is £225,000 — the highest of the three nations — then 6%, 7.5%, 10% and 12%. Wales is the only UK nation with no first-time buyer relief: everyone uses the same main rates. Additional properties use a separate higher-rate schedule starting at 5% from the first pound.
What this calculator does not cover
Our calculator covers standard residential purchases in all three systems (SDLT, LBTT and LTT). It does not handle the England/NI non-UK resident surcharge (an extra 2%), company purchases (a 17% flat rate over £500,000), or mixed-use property. For anything unusual, check the relevant authority — GOV.UK, Revenue Scotland, or the Welsh Revenue Authority — or ask your solicitor.
Try the calculator
Use our stamp duty calculator to see your SDLT bill with a band-by-band breakdown for home movers, first-time buyers, and additional properties. It pairs well with our mortgage calculator when budgeting for a purchase.
Frequently asked questions
How is stamp duty calculated?
Stamp duty is charged in bands. You pay each rate only on the portion of the price within that band, not on the whole price. Crossing a threshold does not tax the entire purchase at the higher rate.
What is the first-time buyer stamp duty relief?
In England and NI, first-time buyers pay no SDLT on the first £300,000, then 5% to £500,000. The relief disappears entirely above £500,000.
How much is the additional property surcharge?
In England and NI it is 5% on every band for properties of £40,000 or more. Scotland charges 8% on the full price (ADS), and Wales uses a separate higher-rate schedule.
Do Scotland and Wales pay stamp duty?
No. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT). Both have different bands and rules from England and Northern Ireland.
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