Stamp duty is usually the biggest cash cost of buying a home after the deposit, and since 1 April 2025 most buyers in England pay more of it than they did a year earlier. The good news is that the calculation is simple once you see how the bands work: each rate applies only to the slice of the price that falls inside its band, just like income tax.
This guide sets out the current Stamp Duty Land Tax (SDLT) rates for England and Northern Ireland, first-time buyer relief, the 5% surcharge on additional homes and the 2% non-resident surcharge, then works through four prices for three types of buyer. It also shows how the rules changed since 2016, when and how you pay, and the refund you can claim if you sell your old home late. To get your own figure in seconds, use the free Stamp Duty Calculator.
This guide is educational, not tax advice. Figures are checked against GOV.UK, Revenue Scotland and Welsh Government guidance as of November 2026, but your conveyancer will confirm the exact amount for your purchase.
Current stamp duty rates in England and Northern Ireland
HMRC's residential property rates page lists these bands, which have applied since 1 April 2025, when the temporary higher thresholds introduced in September 2022 ended:
| Portion of the price | Standard rate | Additional property (+5%) | Non-UK resident (+2%) |
|---|---|---|---|
| Up to £125,000 | 0% | 5% | 2% |
| £125,001 to £250,000 | 2% | 7% | 4% |
| £250,001 to £925,000 | 5% | 10% | 7% |
| £925,001 to £1.5 million | 10% | 15% | 12% |
| Above £1.5 million | 12% | 17% | 14% |
First-time buyer relief
First-time buyers pay 0% up to £300,000 and 5% from £300,001 to £500,000. The relief cannot be claimed at all if the price is over £500,000; standard rates then apply to the whole price, so the maximum first-time buyer bill is £10,000 (5% of £200,000). Under HMRC's manual (SDLTM29811), every buyer must be a first-time buyer, meaning they have never owned a home in the UK or anywhere else in the world, and each must intend to live in the property as their only or main residence.
Additional properties: the 5% surcharge
If you will own more than one residential property at the end of the day of purchase, including a second home or buy-to-let, you usually pay the higher rates: 5 percentage points on top of each band for purchases completing from 31 October 2024 (it was 3% before). The higher rates do not apply to a property costing less than £40,000.
Non-UK residents: a further 2%
Since 1 April 2021, buyers who were not present in the UK for at least 183 days in the 12 months before the purchase pay rates 2 percentage points higher. This sits on top of every other rate, including first-time buyer relief and the 5% surcharge, so a non-resident buying a second home pays 7 points over the standard bands. You can reclaim it if you later spend 183 days in the UK in a continuous 365-day period within the window that runs from 364 days before to 365 days after the purchase.
How to work out stamp duty: the slice method
The most common mistake is applying one rate to the whole price. Instead:
- Pick the right table: standard, first-time buyer (only if the price is £500,000 or less), or higher rates.
- Split the price into the bands above, from the bottom up.
- Multiply each slice by its band rate.
- Add the slices together. Add 2 points per band if you are a non-UK resident.
HMRC's own example: a £295,000 home bought by a home mover pays 0% on £125,000, 2% on £125,000 (£2,500) and 5% on the final £45,000 (£2,250), so £4,750.
Worked examples at four prices
These figures come from the same band logic as our calculator, run in code. “Home mover” also covers anyone who has owned before but will own only this property after buying.
| Price | Home mover | First-time buyer | Additional property |
|---|---|---|---|
| £190,000 | £1,300 (0.68%) | £0 | £10,800 (5.68%) |
| £285,000 | £4,250 (1.49%) | £0 | £18,500 (6.49%) |
| £450,000 | £12,500 (2.78%) | £7,500 | £35,000 (7.78%) |
| £1,100,000 | £53,750 (4.89%) | £53,750 (no relief) | £108,750 (9.89%) |
£190,000
Home mover: 0% on £125,000 plus 2% on £65,000 = £1,300. A first-time buyer is entirely inside the £300,000 nil band, so pays nothing. As an additional property: 5% on £125,000 (£6,250) plus 7% on £65,000 (£4,550) = £10,800. Even a cheap buy-to-let carries a large bill because the surcharge applies from the first pound.
£285,000
Home mover: £0 + 2% of £125,000 (£2,500) + 5% of £35,000 (£1,750) = £4,250. First-time buyer: £0, a saving of £4,250. Additional property: £6,250 + 7% of £125,000 (£8,750) + 10% of £35,000 (£3,500) = £18,500. A non-resident home mover would pay £9,950.
£450,000
Home mover: £0 + £2,500 + 5% of £200,000 (£10,000) = £12,500. First-time buyer: 0% on £300,000 and 5% on £150,000 = £7,500, a £5,000 saving. Additional property: £6,250 + £8,750 + 10% of £200,000 (£20,000) = £35,000.
£1,100,000
Home mover: £0 + £2,500 + 5% of £675,000 (£33,750) + 10% of £175,000 (£17,500) = £53,750. A first-time buyer gets no relief above £500,000, so also pays £53,750. Additional property: £6,250 + £8,750 + 10% of £675,000 (£67,500) + 15% of £175,000 (£26,250) = £108,750, almost 10% of the price.
Note the first-time buyer cliff edge: at £500,000 the bill is £10,000, but at £500,001 relief disappears and it jumps to £15,000. If you are a first-time buyer close to that line, every pound of negotiation matters.
How stamp duty changed: 2016 to 2026
Many buyers remember lower bills from friends who bought a few years ago. HMRC's archive of previous rates shows why:
| Period | What changed |
|---|---|
| 1 April 2016 | 3% surcharge on additional dwellings introduced. Standard bands: 0% to £125,000, 2% to £250,000, 5% to £925,000. |
| 22 November 2017 | First-time buyer relief introduced: 0% to £300,000, 5% to £500,000. |
| 8 July 2020 to 30 June 2021 | Pandemic holiday: nil band raised to £500,000 for everyone; first-time buyer relief replaced by the reduced rates. |
| 1 April 2021 | 2% non-resident surcharge begins. |
| 1 July to 30 September 2021 | Taper: nil band £250,000; first-time buyer relief returns. |
| 1 October 2021 to 22 September 2022 | Back to the £125,000 nil band and 2% slice. |
| 23 September 2022 to 31 March 2025 | Nil band £250,000 (no 2% band); first-time buyers 0% to £425,000 and 5% to £625,000. |
| 31 October 2024 | Additional-dwelling surcharge rises from 3% to 5%. |
| 1 April 2025 onwards | Nil band back to £125,000 with the 2% band; first-time buyers 0% to £300,000 and 5% to £500,000. |
£285,000 then vs now
| Completion date | Home mover | Additional property |
|---|---|---|
| 2019 (pre-holiday rates, 3% surcharge) | £4,250 | £12,800 |
| Holiday, July 2020 to June 2021 | £0 | £8,550 |
| September 2022 to October 2024 | £1,750 | £10,300 |
| November 2024 to March 2025 (5% surcharge) | £1,750 | £16,000 |
| Since 1 April 2025 | £4,250 | £18,500 |
So a home mover buying at £285,000 today pays £2,500 more than in early 2025, the cost of losing the £250,000 nil band. A buy-to-let investor pays £5,700 more than in 2019. First-time buyers lost the most at the upper end: a £450,000 home cost £1,250 in 2023 (5% of the £25,000 above £425,000) but costs £7,500 now.
Scotland and Wales use different taxes
SDLT applies only in England and Northern Ireland. Scotland and Wales have devolved taxes with their own bands, and neither has the 2% non-resident surcharge.
| Scotland: LBTT (from 1 April 2021) | Rate | Wales: LTT main rates (from 10 Oct 2022) | Rate |
|---|---|---|---|
| Up to £145,000 | 0% | Up to £225,000 | 0% |
| £145,001 to £250,000 | 2% | £225,001 to £400,000 | 6% |
| £250,001 to £325,000 | 5% | £400,001 to £750,000 | 7.5% |
| £325,001 to £750,000 | 10% | £750,001 to £1.5 million | 10% |
| Over £750,000 | 12% | Over £1.5 million | 12% |
In Scotland, first-time buyer relief raises the nil band to £175,000 (worth up to £600), and second homes pay the Additional Dwelling Supplement of 8% of the whole price for transactions from 5 December 2024. Wales has no first-time buyer relief, and its higher residential rates, from 11 December 2024, run from 5% up to 17%. On a £285,000 home the main-rate bill is £3,850 in Scotland and £3,600 in Wales, against £4,250 in England.
When you pay and who files
HMRC says you must send an SDLT return and pay the tax within 14 days of completion. In practice your solicitor or conveyancer files the return and pays on completion day, then adds the amount to their completion statement, so you need the cash ready alongside your deposit. A return is required even when no tax is due if you are claiming a relief, such as first-time buyer relief, according to GOV.UK's reliefs page. Missing the deadline can bring penalties and interest.
Lenders will not normally add stamp duty to the mortgage itself. If you fund it by putting down a smaller deposit, your loan-to-value and possibly your rate go up; model the effect in the Mortgage Calculator, and check what the monthly payment leaves you each month with the UK Take-Home Pay Calculator.
Refund when you sell your old home within 3 years
If you buy your new main home before selling the old one, you will still own two homes at the end of the day, so the 5% surcharge applies. HMRC's higher rates guidance lets you claim it back if you sell or give away your previous main residence within 3 years of buying the new one. The refund claim must be made within 12 months of the later of the sale of the old home and the filing date of the return for the new one. On a £450,000 purchase, that refund is £22,500 (the gap between £35,000 and £12,500).
Shared ownership and mixed-use property
For shared ownership you can either make a market value election and pay once on the full market value (with nothing more to pay when you staircase), or pay in stages, in which case no further SDLT is due until your share goes above 80%. First-time buyers buying their first share may be able to claim relief.
Mixed-use property, such as a shop with a flat above, is taxed at the non-residential rates: 0% up to £150,000, 2% from £150,001 to £250,000 and 5% above £250,000. Take specialist advice before relying on this; HMRC looks closely at mixed-use claims.
Common mistakes to avoid
- Applying one rate to the whole price. Only each slice is taxed at its band rate.
- Using pre-April 2025 bands. Older articles and calculators still show the £250,000 nil band and the £425,000 first-time buyer band.
- Assuming partial first-time buyer relief above £500,000. It is all or nothing.
- Buying jointly with a previous owner. If any buyer has owned a home anywhere in the world, first-time buyer relief is lost for everyone.
- Forgetting the surcharge when your sale is delayed. You pay 5% extra now and reclaim it later, so budget for the cash.
- Missing the refund deadline. Diary the 12-month claim window as soon as your old home sells.
- Using England's bands in Scotland or Wales. LBTT and LTT are separate taxes with different bands.
The short answer
In England and Northern Ireland, a home mover pays 0% on the first £125,000, 2% to £250,000 and 5% to £925,000, so £4,250 on £285,000 and £12,500 on £450,000. First-time buyers pay nothing up to £300,000 and 5% above that up to £500,000. Second homes and buy-to-lets add 5 points to every band, and non-residents add 2 more. Pay within 14 days of completion, usually through your solicitor, and reclaim the surcharge if you sell your old home within 3 years.
Frequently asked questions
How much stamp duty will I pay on a £285,000 house?
In England or Northern Ireland a home mover pays £4,250: nothing on the first £125,000, 2% on the next £125,000 (£2,500) and 5% on the last £35,000 (£1,750). A first-time buyer pays nothing, because the first £300,000 is at 0%. As an additional property, such as a buy-to-let, the bill is £18,500.
Do first-time buyers pay stamp duty in 2026?
Only above £300,000. First-time buyers in England and Northern Ireland pay 0% up to £300,000 and 5% on the part from £300,001 to £500,000, so a £450,000 home costs £7,500. If the price is over £500,000 the relief is lost completely and standard rates apply to the whole price. Every buyer must never have owned a home anywhere in the world and must intend to live in it as their only or main residence.
What is the stamp duty surcharge on a second home?
Since 31 October 2024 it is 5 percentage points on top of every standard band, for additional residential property costing £40,000 or more. Before that it was 3%, introduced on 1 April 2016. On a £285,000 buy-to-let the surcharge adds £14,250 to the normal £4,250 bill.
Can I get the higher rates refunded if I sell my old home later?
Yes, if the new property replaced your main home. If you sell or give away your previous main residence within 3 years of buying the new one, you can claim back the extra over the standard rates. The claim must be made within 12 months of the later of the sale and the filing date of the return for the new home.
When do I have to pay stamp duty?
An SDLT return must be sent to HMRC and the tax paid within 14 days of completion. Your solicitor or conveyancer usually files the return and pays on completion day, so you need the money in cash on top of your deposit. Late filing or payment can lead to penalties and interest.
Is stamp duty the same in Scotland and Wales?
No. Scotland charges Land and Buildings Transaction Tax (0% up to £145,000, then 2%, 5%, 10% and 12%) and Wales charges Land Transaction Tax (0% up to £225,000, then 6%, 7.5%, 10% and 12%). On a £285,000 home that is £3,850 in Scotland and £3,600 in Wales, against £4,250 in England.
This guide is general information, not professional advice. Rates and rules change — check the official source before you file or sign anything. See our Disclaimer.