Stamp duty payable
| Price band | Rate | Taxable amount | Duty |
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How stamp duty works
Stamp Duty Land Tax (SDLT) is a tax you pay when buying property or land over a certain price in England and Northern Ireland. Crucially, it works in tiered bands, not as a single flat rate — you pay each band's rate only on the portion of the price that falls within that band, exactly like income tax. This is the most misunderstood aspect of stamp duty, and why the band-by-band breakdown above matters.
For a standard purchase (replacing your main residence) at 2025 rates, you pay nothing on the first £125,000, then 2% on the portion to £250,000, 5% to £925,000, 10% to £1.5 million, and 12% above that. So a £300,000 home costs £5,000 in stamp duty — not 5% of the whole price, but 2% of one slice plus 5% of another.
First-time buyers receive valuable relief: no duty on the first £300,000, and 5% on the portion between £300,001 and £500,000. Above £500,000, the relief disappears entirely and standard rates apply to the whole price. Additional properties — second homes and buy-to-let — carry a 5 percentage point surcharge on every band, which can add tens of thousands to the bill.
Stamp duty is payable within 14 days of completion, normally handled by your solicitor as part of your closing costs. Because the thresholds and rates change frequently with government budgets, always verify the current figures at gov.uk before committing to a purchase. Scotland (LBTT) and Wales (LTT) operate entirely separate systems with their own rates.