Stamp Duty explained: rates, bands and first-time buyer relief
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Quick answer: Stamp Duty Land Tax (SDLT) is paid on property over 125,000 pounds in England and Northern Ireland, with rates rising in bands from 2% to 12%. First-time buyers pay nothing up to 300,000 pounds, and there is a 5% surcharge on additional properties.
Stamp Duty Land Tax is a tax on buying property or land in England and Northern Ireland (Scotland and Wales have their own versions). It is charged in slices, like Income Tax, so you only pay each rate on the part of the price within that band. This guide explains the bands, first-time buyer relief and the surcharge on second homes.
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Read the full mortgages & first homes guide →Quick answer: Stamp Duty threshold 2026 →Primary source: www.gov.uk/stamp-duty-land-tax
How the bands work
SDLT is charged on slices of the price. On a standard purchase you pay 0% on the first 125,000 pounds, 2% on the part from 125,000 to 250,000, 5% from 250,000 to 925,000, 10% from 925,000 to 1.5m and 12% above that.
Worked example: on a 300,000 pound home a standard buyer pays nothing on the first 125,000, 2,500 pounds on the next 125,000 (at 2%), and 2,500 pounds on the final 50,000 (at 5%), giving a total of 5,000 pounds.
First-time buyer relief
First-time buyers pay no SDLT on the first 300,000 pounds and 5% on any portion from 300,000 to 500,000. On the 300,000 pound example above, a first-time buyer would pay nothing.
The relief is only available if the price is 500,000 pounds or less and every buyer is a first-time buyer who has never owned property anywhere in the world.
Second homes, buy-to-let, and Scotland and Wales
If you buy an additional residential property, a 5% surcharge is added to every band. There are refunds if the extra property was a replacement main home sold within set time limits.
Scotland charges Land and Buildings Transaction Tax (LBTT) and Wales charges Land Transaction Tax (LTT), each with different bands and thresholds, so check the rules for the nation where you are buying.
Common questions
How much stamp duty will I pay?
It depends on the price and buyer type. On a 300,000 pound home a standard buyer pays 5,000 pounds and a first-time buyer pays nothing. Use our Stamp Duty calculator for your exact figure.
Do first-time buyers pay stamp duty?
Not on the first 300,000 pounds, provided the property costs 500,000 pounds or less. Above 300,000 (up to 500,000) they pay 5% on the excess.