Stamp Duty Land Tax (SDLT) is a tax you pay when buying property or land in England and Northern Ireland above a certain price threshold. First-time buyers benefit from higher nil-rate thresholds, and additional properties attract a 3% surcharge.
Current Stamp Duty Rates (England & Northern Ireland)
Stamp duty land tax (SDLT) is charged on property purchases in England and Northern Ireland. Scotland and Wales have their own versions (LBTT and LTT respectively).
| Property Price Band | Rate |
|---|---|
| Up to £250,000 | 0% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Stamp duty is calculated on a tiered basis — you only pay the higher rate on the portion of the price within each band, similar to income tax. Use our mortgage calculators to estimate your total costs.
First-Time Buyer Relief
First-time buyers benefit from significant stamp duty relief:
- No stamp duty on properties up to £300,000
- 5% on the amount between £300,001 and £500,000
- Properties over £500,000 — normal rates apply (no first-time buyer relief)
To qualify, you must never have owned a property (including abroad), and it must be your main residence.
Additional Property Surcharge
If you already own a property and are buying an additional one (buy-to-let, second home, holiday home), you'll pay an extra 3% surcharge on top of the standard rates. This applies from the first pound.
You may be able to reclaim the surcharge if you sell your previous main residence within 3 years of buying the new one.
Stamp Duty Calculation Examples
Example 1: £350,000 property (standard buyer)
- £0 - £250,000 = 0% = £0
- £250,001 - £350,000 = 5% = £5,000
- Total: £5,000
Example 2: £350,000 property (first-time buyer)
- £0 - £300,000 = 0% = £0
- £300,001 - £350,000 = 5% = £2,500
- Total: £2,500
Remember to budget stamp duty alongside other mortgage fees when planning your purchase.
Frequently Asked Questions
- Do first-time buyers pay stamp duty?
- First-time buyers pay no stamp duty on properties up to £300,000. For properties between £300,001 and £500,000, you pay 5% on the amount above £300,000. Above £500,000, normal rates apply.
- How much extra stamp duty on a second home?
- You pay a 3% surcharge on top of normal stamp duty rates when purchasing additional properties (buy-to-let, second homes, etc.).
- When do I pay stamp duty?
- Stamp duty must be paid within 14 days of completion. Your solicitor or conveyancer will usually handle this for you.
- Can I reclaim the additional property surcharge?
- Yes. If you sell your previous main residence within 3 years of buying a new one, you can apply for a refund of the 3% surcharge from HMRC.
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