How much stamp duty will I pay?
Stamp duty is charged in slices, so you only pay each rate on the part of the price in that slice. Here is how it works, with worked examples.
The short answer
On a £300,000 home bought as your only residence in England or Northern Ireland, stamp duty is £5,000. For a first-time buyer on the same price it is nothing. For a second home it is £20,000. The rate depends on the price, whether you are a first-time buyer, and whether you already own another home.
For your own figure, use the stamp duty calculator. It also covers Scotland and Wales, which have their own taxes.
How the rates work
Stamp Duty Land Tax (SDLT) applies to homes bought in England and Northern Ireland. It is a tiered tax, like income tax. You pay each rate only on the slice of the price that falls inside that band:
| Part of the price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
These are the rates on GOV.UK: Residential property rates. Rates and thresholds change, so check there for the latest.
Worked example: moving home at £400,000
- The first £125,000 is at 0%, so £0.
- The next £125,000 (up to £250,000) is at 2%, so £2,500.
- The last £150,000 (up to £400,000) is at 5%, so £7,500.
The total is £10,000. The same sums at £300,000 give £2,500 plus £2,500, which is £5,000.
First-time buyers
First-time buyers pay no stamp duty on the first £300,000, and 5% on the part between £300,001 and £500,000. On a £400,000 home that is 5% of £100,000, which is £5,000, half what a home-mover pays. The relief is not available if the price is over £500,000, and you pay the standard rates on the whole price. To qualify, you and anyone you buy with must never have owned a home anywhere in the world, and you must live in the property.
Second homes and buy-to-let
If you buy another residential property and keep your existing home, an extra 5% is added to every band, on the whole price. A second home at £300,000 costs £15,000 extra on top of the £5,000, so £20,000 in all. The surcharge does not apply if you are replacing your main home. Non-UK residents pay a further 2% surcharge. Check GOV.UK for exceptions and for how the rules apply if you sell your previous home later.
Scotland and Wales
Scotland charges Land and Buildings Transaction Tax (LBTT) and Wales charges Land Transaction Tax (LTT). The thresholds and rates differ, and Wales has no first-time buyer relief. Our stamp duty calculator covers all three.
When and how you pay
Stamp duty is normally paid within 14 days of completing the purchase. Your solicitor or conveyancer usually files the return and pays on your behalf, so it is added to the money you hand over on completion. Remember to include it when working out how much you need for the purchase, along with legal fees, a survey and any mortgage arrangement fees.
Where to learn more
This guide is for information only and is not tax or legal advice. Rates change, so check the latest on GOV.UK or ask your solicitor.