For most homebuyers in England and Northern Ireland, stamp duty (Stamp Duty Land Tax, or SDLT) is charged on a sliding scale from 0% up to 12%, depending on the purchase price, whether you're a first-time buyer, and whether you already own another property. There's no single "stamp duty rate" that applies to everyone, so the honest answer is: it depends on your price, your buyer status, and your circumstances, and the figures below will let you work out roughly what you'd pay.
How stamp duty actually works
SDLT is not charged as one flat percentage of the whole purchase price. It's tiered, like income tax, which means different portions of the price are taxed at different rates as you move up through the bands.
For most buyers purchasing a main residence in England or Northern Ireland, the standard residential rates are:
- Up to £125,000: 0%
- £125,001 to £250,000: 2%
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Above £1.5 million: 12%
So if you buy a home for £350,000, you don't pay 5% on the whole amount. You pay 0% on the first £125,000, 2% on the next £125,000, and 5% on the remaining £100,000. As an illustrative example only, that works out at roughly £7,500, though you should always check the exact figure with a solicitor or an up-to-date calculator before relying on it for budgeting.
Scotland and Wales have their own equivalent taxes (Land and Buildings Transaction Tax, and Land Transaction Tax respectively), with different bands and rates, so if you're buying outside England or Northern Ireland, these figures won't apply directly to you.
First-time buyers pay less
If you're a genuine first-time buyer (meaning you've never owned a residential property anywhere in the world, including abroad), you get relief on the first portion of the price:
- Up to £300,000: 0%
- £300,001 to £500,000: 5%
If the property costs more than £500,000, the relief doesn't apply at all, and you pay the standard rates on the full amount instead, as though you weren't a first-time buyer.
This relief can make a genuinely meaningful difference. As an illustrative example, a first-time buyer purchasing at £350,000 would pay SDLT only on the £50,000 above the £300,000 threshold, at 5%, a modest sum compared with what a home mover would pay on the same price.
Buying a second property costs more
If you already own a property anywhere in the world and you're buying another one, whether that's a buy-to-let, a holiday home, or a new main home you intend to keep alongside an existing one, you'll typically pay an extra surcharge on top of the standard rates. This surcharge applies to the whole price, including the portion that would otherwise be tax-free.
In practice this means an additional property purchase can end up costing several thousand pounds more in SDLT than the same purchase would for someone with no other property. If you're selling your existing main home and buying a new one as a straight replacement, there are rules that can mean you avoid the surcharge, or reclaim it later if your sale completes within a set window after your purchase, so it's worth getting proper advice before assuming you'll be charged it.
Why this catches people out
A common mistake is assuming the surcharge only applies to obvious buy-to-let purchases. It can also apply if you're buying a new home before you've sold your current one, even if you fully intend to sell shortly afterwards. Anyone in that position should ask about the surcharge and the reclaim process early, not after exchange.
Do you need to pay it yourself, or does someone sort it for you?
Your conveyancing solicitor normally calculates and submits your SDLT return and arranges payment on completion day, usually out of the funds you've sent them. You don't typically need to work out the exact figure and pay HMRC directly, but you do need to budget for it as part of your overall moving costs, alongside your deposit, legal fees, survey costs, and any lender arrangement fee.
This is one of the areas where a mortgage adviser at The Mortgage Experts can help beyond just the mortgage itself: when we talk through affordability and what you can comfortably borrow, we factor in the whole cost of moving, stamp duty included, so there are no unpleasant surprises close to completion.
A few things that can change your bill
- New build versus existing property: stamp duty applies the same way regardless of whether the home is new or resale, there's no separate new-build discount.
- Shared ownership and other schemes: these have their own SDLT rules, which can differ from a standard purchase, so always check the specifics with your solicitor.
- Non-UK resident buyers: an additional surcharge can apply on top of everything else described here.
- Government policy changes: thresholds and rates have shifted in recent years and can shift again at future Budgets, so always check the current rates at the time you're buying rather than relying on anything you read some months ago, this article included.
Frequently asked questions
Do I pay stamp duty on a remortgage? No. Stamp duty is a tax on purchasing a property. Remortgaging with your existing lender, or switching to a new lender on the same property you already own, doesn't trigger an SDLT charge because no property is changing hands.
Can stamp duty be added to my mortgage? Many lenders will allow you to add stamp duty costs to your mortgage rather than paying it from savings, though doing so increases what you borrow and therefore your monthly payments and the total interest you'll pay over the term. Whether this makes sense depends on your wider finances, which is exactly the kind of thing worth talking through with an adviser.
What happens if I don't pay stamp duty on time? SDLT is normally due within 14 days of completion, and your solicitor usually handles this as part of the conveyancing process. Missing the deadline can bring penalties and interest, which is another reason to let your solicitor manage the payment rather than leaving it until the last minute.
Working out exactly what you'll owe, and how it fits around your deposit and borrowing, is easier with someone looking at the whole picture alongside you. If you'd like to talk through your own numbers before you commit to an offer, get in touch with The Mortgage Experts and we'll help you plan the real cost of your move, not just the headline price.