Understanding Stamp Duty
A clear guide to Stamp Duty Land Tax (SDLT) — what it is, how much you pay, and when it applies.
What Is Stamp Duty?
Stamp Duty Land Tax is a tax you pay when you buy residential property in England or Northern Ireland above a certain price. It is paid to HMRC, usually handled by your solicitor as part of the conveyancing process.
Current Rates (from April 2025)
| Portion of Price | 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% |
Remember: SDLT is progressive. You do not pay the top rate on the entire price — only on the portion within each band. Use our stamp duty calculator for exact figures.
First-Time Buyer Relief
First-time buyers pay no stamp duty on the first £300,000 of a property costing up to £500,000. On the portion between £300,001 and £500,000, the rate is 5%. If the property costs more than £500,000, the relief does not apply and standard rates are used.
Additional Properties
Buying a second home, holiday let, or buy-to-let? You pay a 5% surcharge on the entire purchase price, on top of the standard rates. You may be able to reclaim this if you sell your previous main residence within 36 months.
When and How to Pay
Stamp duty must be paid within 14 days of completion. Your solicitor submits the SDLT return and pays HMRC on your behalf. The amount is usually itemised on your completion statement. Late payment incurs penalties and interest.
Frequently Asked Questions
Do I pay stamp duty on a new-build property?
Yes. Stamp duty applies to new-build properties just as it does to existing homes. The same rates and thresholds apply based on the purchase price.
Is stamp duty different in Scotland?
Yes. Scotland has Land and Buildings Transaction Tax (LBTT) with different rates and bands. This guide covers England and Northern Ireland only.
Can I add stamp duty to my mortgage?
Some lenders allow you to add stamp duty to your mortgage, but this means paying interest on it for the life of the loan. It is generally better to pay it separately if you can.
Important Disclaimer
Stamp duty rates and reliefs can change. This guide reflects rates from April 2025. Always confirm with your solicitor before exchanging contracts.