UK Stamp Duty Explained, Including First-Time Buyer Relief
Stamp Duty Land Tax (SDLT) is a one-off tax paid when you buy property in England or Northern Ireland. It is charged in bands, like income tax, and the bill depends heavily on whether you are a first-time buyer or already own a home. These are the rates in force since 1 April 2025.
Key takeaways
- Standard rates: 0% up to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5 million and 12% above.
- First-time buyers pay nothing up to £300,000 and 5% on the part from £300,001 to £500,000.
- First-time buyer relief is lost entirely if the price is above £500,000.
- Buying an additional home adds 5 percentage points to every band.
Standard residential rates
| Part of the price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
Each rate applies only to the portion of the price that falls within that band. A £300,000 home costs £0 on the first £125,000, 2% × £125,000 = £2,500 on the next slice, and 5% × £50,000 = £2,500 on the rest: £5,000 in total.
First-time buyer relief
| Part of the price | Rate for first-time buyers |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Price above £500,000 | No relief: standard rates apply to the whole price |
The £500,000 limit is a cliff edge. At £500,000 a first-time buyer pays £10,000; at £500,001 they lose the relief completely and pay standard rates of about £15,000.
Worked examples
| Price | First-time buyer | Home mover | Additional property |
|---|---|---|---|
| £250,000 | £0 | £2,500 | £15,000 |
| £300,000 | £0 | £5,000 | £20,000 |
| £450,000 | £7,500 | £12,500 | £35,000 |
| £550,000 | £17,500 (no relief) | £17,500 | £45,000 |
Enter the purchase price and your buyer type to see the exact Stamp Duty, band by band.
Higher rates for additional properties
If you will own more than one residential property after the purchase, for example a buy-to-let or second home, a 5% surcharge is added to each band. Purchases under £40,000 are exempt from the surcharge. On a £300,000 buy-to-let the bill rises from £5,000 to £20,000.
If you buy a new main home before selling your old one, you will usually pay the higher rates at first but can reclaim the surcharge if you sell the previous main home within three years.
Non-UK residents
Buyers who are not UK resident for SDLT purposes pay an additional 2% on top of the rates above. Residence for this purpose depends on time spent in the UK in the year before the purchase, so check the rules if you have recently moved.
Budgeting for the purchase
Stamp Duty is usually paid in cash at completion, not added to the mortgage, so it comes on top of your deposit, legal fees, survey and moving costs. That is a large part of why buying needs a longer time horizon to beat renting; see rent vs buy. Because it is charged in bands, a lower offer near a threshold can save more than you expect. For the monthly side of the purchase, read how mortgage amortization works.
Scotland and Wales
SDLT does not apply in Scotland or Wales. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax, each with different bands, reliefs and surcharges. Use the official calculators from Revenue Scotland and the Welsh Revenue Authority for property there.
Rates can change at any Budget. Always confirm the figures on GOV.UK before you exchange contracts.
Frequently asked questions
Who counts as a first-time buyer for Stamp Duty?
Someone who has never owned a residential property, or a share of one, anywhere in the world, and who intends to live in the home as their main residence. If buying jointly, every buyer must qualify.
When do I have to pay Stamp Duty?
A return must be filed and the tax paid within 14 days of completion. Your solicitor or conveyancer usually handles this and includes it in the funds you transfer before completion.
Does Stamp Duty apply in Scotland and Wales?
No. Scotland has Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT), each with its own bands. This guide covers England and Northern Ireland.
Can I get the extra 5% back if I sell my old home?
If you pay the higher rates because you had not yet sold your previous main home, you can usually claim a refund of the surcharge if you sell it within three years.
Sources
- GOV.UK: Stamp Duty Land Tax, residential property rates
- GOV.UK: Stamp Duty Land Tax overview
- Welsh Revenue Authority: Land Transaction Tax rates and bands
This guide is general information to help you understand the numbers. It is not financial, tax or legal advice. Rates, limits and rules change, so check official sources or a qualified adviser before making a decision. Read our full disclaimer.