- Stamp duty applies to most UK property purchases over £125,000 (England/NI), £145,000 (Scotland), or £225,000 (Wales).
- First-time buyers in England & NI pay no stamp duty under £300,000, and reduced rates up to £500,000.
- A 5% surcharge applies on top for second homes and buy-to-let in England & NI (8% in Scotland, 5% in Wales) — charged on the full price.
- Stamp duty must be paid within 14 days in England/NI, 30 days in Scotland and Wales.
What is stamp duty?
Stamp duty is a tax on UK property purchases above a certain threshold. The name and rates vary by nation — Stamp Duty Land Tax (SDLT) in England and Northern Ireland, Land and Buildings Transaction Tax (LBTT) in Scotland, and Land Transaction Tax (LTT) in Wales — but all three work the same way: a tiered tax charged in slices, with higher rates applying only to the portion of the price within each band.
Unlike most taxes, stamp duty is paid in addition to the purchase price, in cash, at completion. Your conveyancer handles the filing and payment to HMRC (or Revenue Scotland / WRA) within a strict deadline.
Calculate your stamp duty
SDLT rates in England & Northern Ireland (2026/27)
For a standard residential purchase (not a first-time buyer, not an additional property), the SDLT rates from 1 April 2025 onwards are:
| Purchase price band | Rate on the slice |
|---|---|
| £0 – £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| £1,500,001 + | 12% |
The nil-rate threshold dropped from a temporary £250,000 back to £125,000 on 1 April 2025, which means most first-time buyers and home-movers now pay more stamp duty than they did in 2024.
First-time buyer relief
In England and Northern Ireland, first-time buyers get a more generous nil-rate band and a reduced rate on the next slice — but only if the property costs £500,000 or less. Above that, first-time buyer relief is withdrawn entirely and you pay standard SDLT rates.
| FTB price band | Rate |
|---|---|
| £0 – £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| £500,001 + | No relief — standard rates |
To qualify as a first-time buyer, you and anyone you're buying with must never have owned a property anywhere in the world, the property must be your only/main residence, and it must cost no more than £500,000. Inheriting a share counts as ownership.
The 5% additional property surcharge
If you already own a residential property anywhere in the world and you're buying another, you pay a 5% surcharge on top of the standard SDLT rates. This was raised from 3% on 31 October 2024 and applies to:
- Second homes and holiday lets
- Buy-to-let purchases
- Anyone whose main residence sale hasn't completed before the new purchase (though you can reclaim if you sell within 36 months)
- Companies buying residential property (in most cases)
The surcharge is charged on the full purchase price — not just the portion above a threshold. So a £400,000 second home pays standard SDLT (£7,500) plus 5% of £400,000 (£20,000), totalling £27,500.
Scotland — LBTT
Scotland operates its own Land and Buildings Transaction Tax, with different bands set annually by the Scottish Government:
| Band | Rate |
|---|---|
| £0 – £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| £750,001 + | 12% |
First-time buyers in Scotland pay no LBTT on the first £175,000. Above that, standard LBTT rates apply (there's no FTB relief above the threshold like there is in England).
Additional properties attract an Additional Dwelling Supplement (ADS) of 8% on the full price — higher than the English equivalent.
Wales — LTT
Wales replaced SDLT with Land Transaction Tax in April 2018. LTT has the highest nil-rate band of the three nations but a higher 6% rate kicks in earlier:
| Band | Rate |
|---|---|
| £0 – £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1,500,000 | 10% |
| £1,500,001 + | 12% |
Wales doesn't operate a separate first-time buyer relief — instead the headline £225,000 nil-rate band is more generous than England's £125,000. Additional properties pay a 5% surcharge on the full price.
Worked examples
To see how the three nations compare, here's what you'd pay on a £300,000 home in each scenario:
| Scenario (£300k home) | England & NI | Scotland | Wales |
|---|---|---|---|
| Standard buyer | £5,000 | £4,600 | £4,500 |
| First-time buyer | £0 | £2,500 | £4,500 |
| Additional property | £20,000 | £28,600 | £19,500 |
Try other prices and scenarios in the calculator above — or use the full mortgage calculator which also shows your monthly repayment and total interest over the term.
When and how to pay
Stamp duty must be paid:
- England & Northern Ireland (SDLT) — within 14 days of completion
- Scotland (LBTT) — within 30 days of completion
- Wales (LTT) — within 30 days of completion
In practice your solicitor or conveyancer handles the filing and payment on your behalf — they'll ask for the funds as part of your completion statement. Penalties for late payment are substantial, but if you've engaged a regulated conveyancer this should never be a problem you face directly.
How to reduce your stamp duty bill — legally
Stamp duty is largely unavoidable, but a few legitimate strategies can reduce or defer it:
- Time your move — if your purchase price is just over a band threshold, negotiating £1 or £2 below it can save thousands.
- Mixed-use properties — buildings with both residential and commercial elements (a flat above a shop, for example) attract commercial SDLT rates, which can be lower for higher-priced properties.
- Multiple dwellings relief — if buying two or more linked properties, you can claim a calculation based on the average price per dwelling. This was tightened in 2024 but still applies in some cases.
- Reclaim the surcharge — if you pay the additional-property surcharge on what becomes your main residence (because your old one hadn't sold), you can reclaim within 36 months once the old home is sold.
- Use a broker — a whole-of-market mortgage broker can sometimes spot stamp duty optimisations that your conveyancer won't, particularly for complex purchases.
Avoid any "scheme" promising to eliminate stamp duty entirely on a standard residential purchase. HMRC actively pursues these and will recover the tax plus interest and penalties from the buyer, even years later.
Frequently asked questions
Do first-time buyers pay stamp duty?
In England and Northern Ireland, first-time buyers pay 0% stamp duty on the first £300,000 of any property up to £500,000, then 5% on the portion between £300,000 and £500,000. Above £500,000 first-time buyer relief is withdrawn and you pay standard SDLT rates. Scotland has its own £175,000 nil-rate band for first-time buyers under LBTT. Wales has no separate first-time buyer relief but already has a higher £225,000 nil-rate threshold under LTT.
How much stamp duty do you pay on a £300,000 house in England?
A standard buyer pays £5,000 — 0% on the first £125,000, 2% on the next £125,000 (£2,500) and 5% on the final £50,000 (£2,500). A first-time buyer pays £0 because the property is under £300,000.
What's the second-home surcharge in 2026?
5% on top of standard SDLT for England and Northern Ireland (raised from 3% on 31 October 2024). Scotland's ADS is 8%. Wales charges a 5% additional property surcharge under LTT. All three are levied on the full property price.
When do you have to pay stamp duty?
SDLT must be paid within 14 days of completion in England and Northern Ireland. LBTT and LTT must be paid within 30 days of completion in Scotland and Wales respectively. Your conveyancer normally handles the return and payment.
Can stamp duty be added to a mortgage?
Not directly — the tax has to be paid in cash at completion. However, you can borrow slightly more on your mortgage (subject to affordability and LTV limits) and use the extra to fund the stamp duty bill, effectively spreading the cost over the mortgage term but at interest.
Is stamp duty different in Scotland and Wales?
Yes. Scotland charges LBTT and Wales charges LTT. Both have their own bands, rates and reliefs distinct from England's SDLT. Stamp duty in this guide refers to the equivalent tax in each nation.
Related guides
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Bands, the £100k tax trap, Scotland, NI, tax codes — plain English.
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Save more for a deposit by cutting income tax and NI together.
Cash ISA vs Stocks & Shares ISA 2026/27
Where to park your deposit while you save — Cash, S&S or LISA.
Full Mortgage & Stamp Duty Calculator
Repayments, total interest, stamp duty and overpayment savings.
Disclaimer: This article is for illustrative and educational purposes only and is not financial, tax or legal advice. Stamp duty rates and thresholds are correct to the best of our knowledge for the 2026/27 UK tax year but may change. For personalised advice please consult a qualified conveyancing solicitor or chartered accountant.