Stamp duty can be one of the largest upfront costs when buying a property. Understanding how much you may need to pay helps you plan your deposit, legal fees and overall moving budget.
This guide explains residential Stamp Duty Land Tax in England and Northern Ireland, including the standard rates, first-time buyer relief and higher rates for additional properties.
Information checked on 7 October 2026.
Stamp Duty Land Tax, often shortened to SDLT, is a tax payable on certain property and land transactions in England and Northern Ireland.
The amount depends on the purchase price, your circumstances and whether any relief or additional charge applies.
Scotland uses Land and Buildings Transaction Tax, while Wales uses Land Transaction Tax, with different rules and rates. www.gov.uk
For a standard residential purchase where no relief or surcharge applies, the rates are:
| Portion of the purchase price | Rate |
|---|---|
| Up to £125,000 | 0% |
| Above £125,000 up to £250,000 | 2% |
| Above £250,000 up to £925,000 | 5% |
| Above £925,000 up to £1.5 million | 10% |
| Above £1.5 million | 12% |
Stamp duty is calculated in bands. Each rate applies only to the part of the price within that band.
If the standard rates apply:
Total stamp duty: £10,000.
Eligible first-time buyers pay no stamp duty on the first £300,000 when purchasing a main home for £500,000 or less. The portion above £300,000 is taxed at 5%.
If the price exceeds £500,000, first-time buyer relief does not apply and the standard rates apply to the whole purchase using the normal bands.
All buyers must qualify. Generally, you cannot claim this relief if you have previously owned a residential property, or a share of one, anywhere in the world, including through inheritance.
An eligible first-time buyer pays 0% on the first £300,000 and 5% on the remaining £100,000.
Total stamp duty: £5,000.
Buying an additional residential property will usually attract a surcharge of five percentage points on top of the standard rates. This can apply to second homes, holiday homes and buy-to-let properties.
Where the higher rates apply:
| Portion of the purchase price | Rate |
|---|---|
| Up to £125,000 | 5% |
| Above £125,000 up to £250,000 | 7% |
| Above £250,000 up to £925,000 | 10% |
| Above £925,000 up to £1.5 million | 15% |
| Above £1.5 million | 17% |
For example, an additional property costing £400,000 would attract £30,000 in stamp duty under these rates.
Property owned overseas can count when deciding whether the higher rates apply. Joint purchases and purchases by married couples or civil partners also have specific rules.
Company purchases generally attract the higher rates, even for a company’s first residential property. Some company purchases have a separate tax treatment, so obtain advice before committing.
Buying an additional residential property will usually attract a surcharge of five percentage points on top of the standard rates. This can apply to second homes, holiday homes and buy-to-let properties.
Where the higher rates apply:
| Portion of the purchase price | Rate |
|---|---|
| Up to £125,000 | 5% |
| Above £125,000 up to £250,000 | 7% |
| Above £250,000 up to £925,000 | 10% |
| Above £925,000 up to £1.5 million | 15% |
| Above £1.5 million | 17% |
For example, an additional property costing £400,000 would attract £30,000 in stamp duty under these rates.
Property owned overseas can count when deciding whether the higher rates apply. Joint purchases and purchases by married couples or civil partners also have specific rules.
Company purchases generally attract the higher rates, even for a company’s first residential property. Some company purchases have a separate tax treatment, so obtain independent advice before committing.
The additional-property surcharge will not normally apply if you sell your previous main home and buy its replacement, provided the relevant conditions are met.
If you complete your new purchase before selling your previous main home, you may need to pay the higher rates upfront.
You may be able to reclaim the surcharge if you sell your previous main home within three years and meet HMRC’s conditions. Separate claim deadlines apply, so ask your solicitor to confirm your eligibility and when to submit the claim. www.gov.uk
Where required, your stamp duty return and payment must reach HMRC within 14 days of completion.
Your solicitor or conveyancer will usually handle this on your behalf and ask you to provide the funds alongside the other completion costs.
A return may still be required even if there is no tax to pay. www.gov.uk
You should budget for stamp duty as part of your upfront purchase costs.
In some cases, a larger mortgage may allow you to retain more cash to cover these costs. This depends on the lender’s affordability assessment, the property valuation and the maximum loan-to-value available.
Borrowing more can increase your monthly repayments and the total interest paid. Your mortgage adviser can explain how different deposit and borrowing amounts affect your options.
Shared ownership has specific stamp duty rules. You can usually choose to pay based on the property’s full market value or pay in stages. Eligible first-time buyers may qualify for relief.
Your solicitor should explain how each option affects the initial purchase and any later purchases of additional shares.
Buyers treated as non-UK resident for SDLT purposes usually pay an additional two percentage points. This can apply alongside the additional-property surcharge.
SDLT has its own residency test, so nationality alone does not determine whether the charge applies.
Receiving a property under a will does not normally trigger stamp duty. However, buying another beneficiary’s share or taking over mortgage debt as part of a separate transfer can have different consequences.
Adding someone to the title can also create a stamp duty liability, depending on the payment or mortgage debt involved. Ask your solicitor to check before making changes. www.gov.uk
Alongside your deposit, allow for stamp duty, conveyancing, survey costs, any mortgage fees and moving expenses.
Use the HMRC Stamp Duty Land Tax calculator for an estimate, then ask your solicitor or tax adviser to confirm the amount payable for your transaction.
Whether you are buying your first home, moving house or purchasing a buy-to-let property, The Residential Mortgage Hub can help you understand your mortgage options and plan your borrowing.
Request an appointment to speak to one of our advisers.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount will depend upon your circumstances.
There is no fee for initial mortgage advice before application. A fee may be payable if you decide to proceed, depending on your individual circumstances. Any fee will be discussed and agreed with you before you proceed.
This guide provides general information and does not constitute tax advice. Tax rules and rates can change. Your solicitor or a qualified tax adviser should confirm how the rules apply to your circumstances.
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