What you need to know about UK stamp duty before you buy
Stamp Duty Land Tax is one of the largest upfront costs of buying a home in England or Northern Ireland, yet it catches many buyers off guard. Unlike the deposit you have been saving for or the solicitor's fee you budgeted, SDLT is a cash tax payable to HMRC within 14 days of completion with no instalment option and no way to add it directly to your mortgage. From 1 April 2025, the temporary higher thresholds that applied since 2022 have expired, pushing bills up for most buyers and removing a significant chunk of first-time buyer relief overnight.
The tax works on a slice basis, not a slab basis. Each portion of the purchase price falls into a band and is taxed at the rate for that band, just like UK income tax. Buying at GBP 260,000 means only the last GBP 10,000 is taxed at 5%, not the whole price. This is important to understand because it means small changes in price rarely cause large jumps in your tax bill, with one major exception: first-time buyers lose their entire relief if the price exceeds GBP 500,000, creating a genuine cliff edge.
This calculator computes your SDLT bill instantly for any property price, including first-time buyer relief, the 5% second-home surcharge introduced in the Autumn Budget 2024, and the 2% non-UK resident surcharge. It also shows the true long-term cost if you effectively finance the stamp duty through a larger mortgage, a scenario far more common than most buyers realise. Enter your property price above and see the full breakdown before you make an offer.
What is Stamp Duty Land Tax (SDLT)?
Stamp Duty Land Tax is a tax you pay to HMRC when you buy a residential property or piece of land in England or Northern Ireland above a certain price. It is one of the largest single up-front costs of buying a home — bigger than your solicitor's fee, your survey, and your removal van combined — and unlike most buying costs, it cannot be deducted from your mortgage offer or paid in instalments. Within 14 days of completion, the full amount must land in HMRC's bank account, normally via your conveyancing solicitor.
SDLT is a slice tax, not a slab tax. That means each portion of the purchase price is taxed at a different rate — you don't suddenly jump to a higher rate on the whole price when you cross a threshold. Buying at £260,000 only taxes that final £10,000 at 5%, not the whole price. This is the same principle as UK income tax bands.
Current SDLT Rates (from 1 April 2025)
The temporary "stamp duty holiday" thresholds introduced in 2022 expired on 31 March 2025. From 1 April 2025 the bands reverted, raising costs for most buyers — particularly first-time buyers, who lost £125,000 of relief overnight.
Standard residential rates (home movers)
| 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% |
| Above £1,500,000 | 12% |
First-time buyer rates
| Portion of price | Rate |
|---|
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| Above £500,000 | No relief — standard rates apply to whole price |
The £500,000 cliff edge is brutal: a first-time buyer paying £499,999 owes £9,999 in SDLT, but at £500,001 they lose the relief entirely and owe £12,500 — a £2,501 jump for spending one extra pound.
Additional property & buy-to-let surcharge
If you'll own more than one residential property anywhere in the world after the purchase, and you're not replacing your main home, you pay an extra 5% on every band. This surcharge rose from 3% to 5% on 31 October 2024 in the Autumn Budget and now applies from £40,000 upwards (so the 0% band is effectively wiped out for additional properties).
Non-UK resident surcharge
Non-UK residents buying residential property pay a further 2% on every band, on top of any other rate that applies. This means an overseas buyer purchasing a second UK property could be paying 19% on the top slice.
How First-Time Buyer Relief Works (and Where the Traps Are)
First-time buyer relief is generous — but tightly defined. To qualify, every buyer named on the purchase must have never previously owned any residential property anywhere in the world, including inherited shares, foreign holiday homes, and buy-to-let interests. If you and your partner are buying jointly and only one of you is a first-time buyer, neither qualifies and standard rates apply to the entire purchase.
The other key trap is the £500,000 cliff. Above this price, relief disappears completely — not gradually. This makes the £495,000–£505,000 price range very sensitive in negotiations: a few thousand pounds either way changes your tax bill by thousands.
Negotiation tip
If you're a first-time buyer and the asking price is £505,000, it is genuinely worth asking the seller to drop to £500,000. At £505,000 your SDLT is £12,750. At £500,000 it is £10,000. You save £2,750 in tax — far more than you "lose" by paying £5,000 less.
The 5% Second-Home Surcharge Explained
The Higher Rates for Additional Dwellings (HRAD) surcharge catches anyone who will own more than one residential property at the end of the day of completion. It applies to buy-to-let landlords, holiday-home buyers, parents purchasing for their children, and anyone buying before they have managed to sell their existing home.
The good news for chain-breakers: if you're buying a new main residence and haven't yet sold the old one, you pay the surcharge up front but can reclaim it if you sell your previous main home within 36 months of completion. You'll need to be quick — and the refund is not automatic; you must apply via the HMRC online portal.
Stamp Duty Across the UK — England, Scotland and Wales
The UK has three different property purchase taxes, depending on where the property is:
- England & Northern Ireland — Stamp Duty Land Tax (SDLT), administered by HMRC. This is what this calculator computes.
- Scotland — Land and Buildings Transaction Tax (LBTT), administered by Revenue Scotland. Different bands, with the 0% threshold at £145,000 (£175,000 for first-time buyers).
- Wales — Land Transaction Tax (LTT), administered by the Welsh Revenue Authority. No first-time buyer relief, but a higher 0% threshold of £225,000 for everyone.
The differences can be substantial. On a £400,000 purchase, an English home mover pays £7,500 in SDLT, while a Welsh buyer pays £7,200 in LTT and a Scottish buyer pays £13,350 in LBTT. Always check the rates for the country you are buying in, not the country you live in.
The Hidden Cost: Stamp Duty on Your Mortgage
Stamp duty is a cash tax. HMRC will not accept a promise to pay or an instalment plan. But for many buyers, finding £10,000–£20,000 in additional cash on top of a deposit is impossible — so they end up rolling the cost into their mortgage by borrowing more against the property.
This is where SDLT quietly becomes one of the most expensive items in your home purchase. A £15,000 stamp duty bill feels painful enough as a one-off — but financed at 4.5% over 25 years, you'll pay back roughly £25,000. That £10,000 of pure interest is the true price of choosing not to pay cash. Use the panel above to see exactly what your own bill would cost financed over your mortgage term.
If you can possibly avoid it, paying SDLT in cash will always be cheaper than borrowing it. But if you do have to add it to the mortgage, two things help dramatically:
- Aggressive overpayments early on. Use our mortgage overpayment calculator to see how directing extra cash at the mortgage in the first few years can wipe out the SDLT slice well before the term ends.
- Remortgaging at every deal end. Don't lapse onto SVR. Even half a percent saved across 25 years on £15,000 of borrowing makes a meaningful dent in the true cost.
What-If Scenarios Worth Modelling
The "what-if" panel above shows your SDLT bill at three nearby price points. A few things to think about as you play with the numbers:
- The £125,000, £250,000 and £300,000 thresholds are where the rate steps up. If a property is priced just above one, see whether the seller will meet you just below.
- For first-time buyers, the £500,000 line is the most expensive cliff in the entire UK property market. Never pay £505,000 if you can pay £500,000.
- For additional property buyers, the surcharge kicks in from £40,000. There is no nil-rate band at all on a buy-to-let purchase.
- Always model the effect of including stamp duty in your mortgage, especially on borderline affordability. £15,000 on the mortgage at 4.5% adds about £83 a month to your payment — small enough to absorb, but large enough to compound against you for decades.
When and How Stamp Duty Is Paid
Your conveyancing solicitor handles SDLT for you in practice. A few days before completion, they'll send you a final completion statement listing every cost — including SDLT — and ask you to transfer the full amount into their client account. On completion day, they pay HMRC and file the SDLT return on your behalf. You should receive an SDLT5 certificate as proof of payment within a couple of weeks.
The legal deadline is 14 days from completion. Late filing triggers an automatic £100 penalty, escalating quickly thereafter, plus interest on the unpaid tax. In practice, no competent conveyancer will let you breach this — but it's worth knowing why your solicitor will be very firm about needing the funds before completion.
Frequently Asked Questions
What are the current UK Stamp Duty rates in 2026?
From 1 April 2025, the standard residential SDLT bands in England and Northern Ireland are: 0% on the first £125,000; 2% on £125,001 to £250,000; 5% on £250,001 to £925,000; 10% on £925,001 to £1.5m; and 12% on anything above £1.5m. First-time buyers pay 0% up to £300,000 and 5% on the slice from £300,001 to £500,000, with no relief if the price exceeds £500,000.
How much is the second home stamp duty surcharge?
If you'll own another residential property anywhere in the world and aren't replacing your main home, you pay a 5% surcharge on top of every standard SDLT band. This rate rose from 3% to 5% on 31 October 2024 and applies from £40,000 upwards.
Do first-time buyers pay any stamp duty?
First-time buyers buying for £300,000 or less pay nothing. Between £300,001 and £500,000 they pay 5% on the slice above £300,000. If the property costs more than £500,000, first-time buyer relief is lost entirely and standard rates apply to the whole price.
Can I add stamp duty to my mortgage?
Stamp duty must be paid in cash to HMRC within 14 days of completion — you cannot directly borrow it from your lender. However, many buyers borrow more against the property to free up cash for the tax bill. This effectively means you finance the SDLT over your mortgage term, paying interest on it for 25–30 years. On a £15,000 SDLT bill at 4.5% over 25 years, you pay back roughly £25,000.
What about Scotland and Wales?
Scotland uses Land and Buildings Transaction Tax (LBTT) administered by Revenue Scotland. Wales uses Land Transaction Tax (LTT) administered by the Welsh Revenue Authority. Both have different bands to England's SDLT. This calculator covers England and Northern Ireland (SDLT) only.
When does stamp duty have to be paid?
Within 14 days of completion. In practice your conveyancing solicitor handles the SDLT return and payment using funds you transfer to them before completion day.
Can I get a refund if I sell my old main home later?
Yes. If you pay the 5% surcharge because you hadn't sold your previous main home in time, you can reclaim it via HMRC's online portal — provided you sell the previous main home within 36 months of completing on the new one. The refund is not automatic; you must apply.
This calculator covers Stamp Duty Land Tax (SDLT) for residential purchases in England and Northern Ireland under the rules effective from 1 April 2025. It does not cover non-residential or mixed-use property, leasehold rent, multiple dwellings relief, or transactions involving companies. Always confirm your final SDLT liability with your conveyancing solicitor. Figures are illustrative and do not constitute tax or financial advice.