Stamp Duty

What is Stamp Duty?

Stamp duty is a tax payable when you buy residential property or land in the UK. The amount depends on where you buy, the price, and your circumstances, including whether you are buying your first home, moving home, or purchasing another property.

In England and Northern Ireland, this tax is called Stamp Duty Land Tax (SDLT). Scotland and Wales have their own property transaction taxes: Land and Buildings Transaction Tax (LBTT) in Scotland and Land Transaction Tax (LTT) in Wales, each with different rules, rates, and thresholds.

How Is Stamp Duty Calculated?

Stamp duty is charged on a tiered basis, meaning you pay different rates on portions of the property price within each tax band. For example, you won’t pay stamp duty on the portion of the price that falls under the lowest threshold, and higher rates apply only to amounts above that.

Your circumstances affect the rate. Eligible first time buyers may claim relief on purchases up to £500,000. Additional residential property usually uses higher rates.

Stamp Duty Rates in England and Northern Ireland

For a main home in England and Northern Ireland, standard residential rates checked 27 October 2026 are:

Property Price Stamp Duty 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%

Over £1.5 million 12%

Source: Gov.uk

First Time Buyer Stamp Duty Relief

Eligible first time buyers pay no SDLT on the first £300,000 and 5% on the portion from £300,001 to £500,000. The relief is not available if the purchase price is above £500,000. Check the full eligibility rules on GOV.UK.

Stamp Duty on Additional Properties

Buying an additional residential property usually attracts higher SDLT rates, 5 percentage points above the standard rates from 1 April 2025. If you are replacing your main home and have not sold the previous one by completion, you may pay the higher rates first. A refund may be available if you sell the previous main home within 36 months. Eligibility rules and exceptions apply.

Stamp Duty in Scotland and Wales

Scotland uses Land and Buildings Transaction Tax. For 2026 to 2027, residential rates are 0% up to £145,000, 2% on the portion up to £250,000, 5% up to £325,000, 10% up to £750,000 and 12% above £750,000. First time buyer relief raises the 0% threshold to £175,000. The Additional Dwelling Supplement is 8% when it applies. Source: Scottish Government.

Wales uses Land Transaction Tax. Main residential rates are 0% up to £225,000, 6% on the portion up to £400,000, 7.5% up to £750,000, 10% up to £1.5 million and 12% above that. There is no first time buyer relief. Higher rates apply to additional homes and range from 5% to 17% by band. Source: Welsh Revenue Authority.

Why Understanding Stamp Duty Is Important

Stamp duty is a key part of property conveyancing and a significant cost to consider when buying a home. Knowing how much you might owe helps you budget effectively and avoid surprises in your property purchase process.