Stamp Duty

Stamp Duty Land Tax (SDLT) is a tax HMRC charges when you buy residential property or land in England or Northern Ireland above a certain price. It isn't a flat percentage of the purchase price, it's charged in bands, so the rate climbs as the price rises, and you only pay the higher rate on the slice of the price that falls into that band.

The tax hits buyers at exactly the moment they've already committed the most money to a purchase, which is why it's worth budgeting for well before you make an offer. Use the UK Stamp Duty Calculator to see the exact figure for a given price, buyer status, and property type.

SDLT is the sum of the tax owed in each band the purchase price passes through, plus a surcharge if the property counts as an additional one:

Standard bands: 0% up to £125,000 → 2% from £125,001–£250,000 → 5% from £250,001–£925,000 → 10% from £925,001–£1,500,000 → 12% above £1,500,000.

First-time buyer bands (up to £500,000 only): 0% up to £300,000 → 5% from £300,001–£500,000.

Additional property surcharge: +5% of the full purchase price, added on top of the standard bands.

A first-time buyer purchasing a £350,000 home pays £0 on the first £300,000 and 5% on the remaining £50,000, for a total of £2,500, an effective rate of just 0.71%. Buy that same £350,000 property as a second home instead, and standard bands plus the 5% surcharge push the bill to £25,000, an effective rate of over 7%.

• It's paid on top of your deposit and mortgage, not funded by them, lenders don't typically include SDLT in the loan amount, so you need the cash available separately.
• First-time buyer relief is a cliff-edge, not a taper. Cross £500,000 and you lose the entire relief, paying standard rates on the full price instead of a reduced rate.
• The additional property surcharge doesn't combine with first-time buyer relief, if the purchase counts as an additional property, relief doesn't apply even if it's your first purchase in your own name.
• Rates change through government budgets. The additional property surcharge rose from 3% to 5% in the October 2024 Budget, so always check the current figure before exchange rather than relying on an old estimate.
• Compare your SDLT bill against your take-home pay via PAYE and National Insurance deductions using the UK Take-Home Pay Calculator to see the full affordability picture.