UK Stamp Duty Guide: Rates and Thresholds Explained

By Sean R. · Updated 18 August 2026

How it's calculated: a banded, not flat, tax

Stamp Duty Land Tax (SDLT) applies in England and Northern Ireland when you buy residential property above a certain price (Scotland has its own Land and Buildings Transaction Tax, and Wales has Land Transaction Tax, different bands, same basic idea). Like income tax, it's banded: you pay a percentage on the portion of the price within each band, not one flat rate on the whole purchase price. A property priced above the top band doesn't get taxed at the top rate on the entire amount, only on the slice within that band.

First-time buyer relief

First-time buyers typically pay a reduced rate up to a certain threshold, and none at all below a lower threshold, provided the whole property is being bought as their only or main residence. There's usually a maximum purchase price above which the relief stops applying entirely. Check the current thresholds on gov.uk, as these are among the figures most frequently adjusted at Budget.

The additional-property surcharge

Buying a second home, a buy-to-let, or any additional residential property typically triggers a surcharge on top of the standard rates, applied across every band rather than just the top one. This is the single biggest reason two buyers purchasing identical properties can owe very different amounts, if you already own a home (even one you're in the process of selling), budget for this.

If you're buying a new main residence before selling your current one, you usually pay the surcharge upfront and can reclaim it if you sell your previous main residence within a set window afterwards, worth planning your cashflow around, not just your eventual tax bill.

Non-UK resident surcharge

Buyers who don't meet UK residence tests for SDLT purposes typically pay an additional surcharge on top of standard (and additional-property, if applicable) rates. This applies based on your residence status around the time of purchase, not your nationality.

What this means when you're budgeting

When you're working out what you can afford, start from a real valuation estimate and factor in SDLT on top, not the other way around. Stamp duty is due on completion and isn't something a mortgage typically covers as part of the loan, it needs to be funded from your own cash alongside your deposit. When comparing what you can afford against a valuation estimate, factor in SDLT (plus legal fees and survey costs) on top of the purchase price, not as an afterthought.

A worked example

A buyer purchasing a £350,000 property as their only home, with no first-time-buyer relief, pays SDLT calculated band by band on the way up to £350,000, nothing on the lowest band, a percentage on the next slice, a higher percentage on the slice above that, and so on up to the purchase price (exact bands and rates change at Budgets, always check gov.uk for current figures rather than assuming last year's bands still apply). If that same buyer already owns another residential property, the additional-property surcharge applies across every band of that same calculation, not just the top slice, which is why the total bill for an "identical" purchase can differ by a significant amount purely based on whether it's a main residence or a second property.

Frequently asked questions

Do first-time buyers ever pay zero stamp duty?

Yes, below the current first-time-buyer nil-rate threshold, provided the whole property is being bought as your only or main residence. Check gov.uk for the current threshold, as it's periodically adjusted.

When is stamp duty due?

Within a set number of days of completion (currently 14 days in England and Northern Ireland), your solicitor or conveyancer normally handles filing the return and payment as part of completion, but the funds need to be available on your side by then.

Can I add stamp duty to my mortgage?

Generally no, SDLT is due on completion from your own funds alongside your deposit, not typically financed as part of the mortgage loan itself. Budget for it separately from your deposit and legal fees.

Does stamp duty apply the same way in Scotland and Wales?

No, Scotland has its own Land and Buildings Transaction Tax and Wales has Land Transaction Tax, both with different bands and rates to SDLT, though the same banded-tax principle applies. If you're buying outside England or Northern Ireland, check the relevant devolved tax authority's site rather than gov.uk's SDLT rates.

In summary

• SDLT is a banded tax, you pay each band's rate only on the portion of the price within it, not a single flat rate on the whole purchase.
• First-time buyers get relief up to a threshold; buyers with an existing property pay a surcharge across every band.
• Non-UK residents face an additional surcharge based on residence status at the time of purchase.
• SDLT is due in cash on completion, separate from your mortgage and deposit, budget for it explicitly, and always check gov.uk for current bands before relying on a figure.

Because SDLT bands and reliefs change relatively often at Budget announcements, treat any figure you've seen quoted, including in older articles or previous years' guidance, as potentially out of date. Confirming the exact current bands on gov.uk before completion takes a few minutes and avoids an unpleasant surprise on completion day.

Getting this wrong isn't just a paperwork issue, underpaying SDLT (even accidentally) can result in penalties and interest from HMRC, while overpaying because you missed an applicable relief means money that could have gone toward your deposit or moving costs instead. A conveyancing solicitor who routinely handles this is worth the fee for exactly this reason.

Stamp duty is one of several costs on top of the purchase price, see our guide on what affects property value for the factors that determine the price itself.