How stamp duty is worked out
Stamp Duty Land Tax (SDLT) is charged in slices, like income tax. Each rate applies only to the part of the price that falls inside its band, so crossing a threshold never makes the whole price more expensive. The rates below have applied to residential purchases in England and Northern Ireland since 1 April 2025, when the temporary nil-rate band of £250,000 ended and the threshold returned to £125,000.
| Portion of the price | Standard rate | Additional property |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5 million | 10% | 15% |
| Above £1.5 million | 12% | 17% |
For example, a £295,000 home bought by someone moving house costs £4,750: nothing on the first £125,000, £2,500 on the next £125,000 and £2,250 on the last £45,000.
First-time buyer relief
First-time buyers pay 0% on the first £300,000 and 5% on the portion from £300,001 to £500,000. The relief has a hard ceiling: if the price is above £500,000 it is lost altogether and the standard rates apply to the whole price. A first-time buyer is someone who has never owned a residential property anywhere in the world, and where two people buy together, both must qualify.
Buying an additional property
The higher rates add 5 percentage points to every band when, at the end of the day of purchase, you will own more than one residential property worth £40,000 or more and you are not replacing your main residence. They apply to buy-to-let purchases and second homes, and to most purchases by companies. Married couples and civil partners are treated as one unit, so a property owned by your spouse counts.
If you buy your new main home before selling the old one, you pay the higher rates at completion. You can then claim them back if you sell your previous main residence within 36 months.
Non-UK resident surcharge
Buyers who were not present in the UK for at least 183 days in the 12 months before the purchase pay an extra 2% on purchases of £40,000 or more, on top of whichever rates apply, including first-time buyer rates and the higher rates. If you become UK resident within the following year you may be able to reclaim it.
Stamp duty at common prices
The table shows the SDLT due at typical prices for a UK-resident buyer. First-time buyer relief disappears above £500,000, which is why the first-time buyer and home mover figures are the same at £750,000 and £1 million.
| Price | Moving home | First-time buyer | Additional property |
|---|---|---|---|
| £200,000 | £1,500 | £0 | £11,500 |
| £300,000 | £5,000 | £0 | £20,000 |
| £400,000 | £10,000 | £5,000 | £30,000 |
| £500,000 | £15,000 | £10,000 | £40,000 |
| £750,000 | £27,500 | £27,500 | £65,000 |
| £1,000,000 | £43,750 | £43,750 | £93,750 |
When and how stamp duty is paid
An SDLT return must be filed and the tax paid within 14 days of completion. In practice your solicitor or conveyancer files the return and pays from funds you provide, so the tax needs to be in your completion budget, not added to the mortgage afterwards. A return is still required for most residential purchases of £40,000 or more even when the tax works out at nil, for example a first-time buyer purchase under £300,000. Late returns attract a £100 penalty, rising to £200 after three months, and interest runs on late tax.
What this calculator does not cover
- Scotland and Wales. Purchases there are taxed under LBTT and LTT respectively;
- Non-residential and mixed-use property. Shops, offices and farmland have separate bands starting at £150,000;
- New leases. Rent on a new lease can attract SDLT on its net present value as well as the premium;
- Company purchases over £500,000. These can be charged a flat 17% unless a relief applies;
- Multiple dwellings, shared ownership and linked transactions. These follow their own rules.
Getting it right
Most SDLT disputes come from the edges: whether a property counts towards the £40,000 test, whether a buyer is truly a first-time buyer, or whether a purchase is residential at all. Our stamp duty specialists review complex transactions before completion and help clients reclaim overpaid tax. If you are buying as a landlord, see our accountants for landlords.