How stamp duty works
Stamp Duty Land Tax (SDLT) is a transaction tax paid when buying a property or piece of land in England or Northern Ireland for more than £40,000. It's calculated in bands — you pay each rate only on the portion of the price that falls within that band, not on the entire price.
For example, on a £300,000 home-mover purchase, no SDLT is due on the first £125,000, 2% applies to the next £125,000 (£2,500), and 5% applies to the final £50,000 (£2,500). Total SDLT: £5,000, an effective rate of 1.67% on the full price. The temporary higher thresholds from the September 2022 mini-budget expired on 31 March 2025, returning the nil-rate band to £125,000 from 1 April 2025 onwards.
Most buyers never have to deal with the SDLT return themselves — your conveyancer files it with HMRC and pays on your behalf within the 14-day deadline after completion, using funds you transfer to them. Late filing triggers an automatic £100 penalty even if the tax itself is paid, so it's worth checking your conveyancer is on top of it.
2026/27 stamp duty bands
Standard rates for home movers (England and Northern Ireland):
| Band | 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% |
First-time buyer relief explained
First-time buyer (FTB) relief gives a higher nil-rate band to anyone buying their first residential property in the UK — provided the purchase price is no more than £500,000. Under FTB relief:
- £0 – £300,000: 0%
- £300,001 – £500,000: 5%
If the property price is even £1 over £500,000, FTB relief is lost entirely and standard home-mover bands apply to the whole price. To qualify, every buyer on the transaction must be a first-time buyer — if you're buying jointly with someone who has ever owned property, relief is unavailable. You must also intend to live in the property as your only or main home.
Additional property surcharge
If you already own a residential property and are buying another — a second home, a buy-to-let, a holiday home, or a property for a family member — you pay a 5% surcharge on top of every standard band. So an additional-property purchase at £300,000 pays 5% on the first £125,000 (instead of 0%), 7% on the next £125,000, and 10% on the remaining £50,000 — £20,000 of SDLT vs £5,000 for a home mover at the same price.
The surcharge was raised from 3% to 5% on 31 October 2024 and carries through to 2026/27. If you're replacing your main residence but there's a gap between selling the old and buying the new, you pay the surcharge upfront and can reclaim it if you sell the previous main home within 36 months.
Stamp duty in Scotland and Wales
SDLT only applies in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT) administered by Revenue Scotland, with different bands starting at a £145,000 nil-rate threshold and a 5-band structure up to 12% over £750,000. The Additional Dwelling Supplement is 8% for 2026/27. Wales uses Land Transaction Tax (LTT) administered by the Welsh Revenue Authority, also with its own bands. This calculator covers SDLT in England and Northern Ireland only.