Stamp duty, and the cliff edge that catches buyers
Stamp duty is cash you have to find on completion day, on top of the deposit. The rates are simple. The reliefs and surcharges are where people get caught.
In England and Northern Ireland you pay no stamp duty on the first £125,000, then 2% to £250,000 and 5% to £925,000. First-time buyers pay nothing up to £300,000, but lose the relief entirely above £500,000.
What stamp duty is and who pays it
Stamp Duty Land Tax is a tax on buying property in England and Northern Ireland. The buyer pays it, and the solicitor usually handles the filing.
Scotland and Wales have their own versions with different names and different thresholds. This page covers England and Northern Ireland.
It is due within 14 days of completion. In practice your conveyancer collects it from you before completion and pays it on your behalf.
The rates, in one table
| Portion of the price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,000 to £250,000 | 2% |
| £250,000 to £925,000 | 5% |
| £925,000 to £1.5 million | 10% |
| Above £1.5 million | 12% |
Rates for a property that will be the only residential property you own. You usually pay 5% on top of every band if you already own another.
It works in slices, like income tax. You do not pay the higher rate on the whole price, only on the portion inside that band.
First-time buyer relief
If everyone buying is a first-time buyer and the home will be your main residence, relief applies.
| Purchase price | What you pay |
|---|---|
| Up to £300,000 | Nothing |
| £300,000 to £500,000 | 5% on the portion above £300,000 |
| Over £500,000 | No relief at all, standard rates on the whole price |
The cliff edge above the cap is real. One pound over and the relief disappears entirely.
That cliff edge is worth knowing when you negotiate. A purchase at £500,000 carries a much smaller bill than one at £505,000.
Everyone buying has to be a first-time buyer. If one of you has owned a home anywhere in the world before, the relief is lost.
Working out whether an offer is affordable?
Stamp duty is only one line of it. Tell us the numbers and we will point you at someone who can price the whole purchase.
Ask us a questionPrefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.
This goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.
The additional property surcharge
If you will own more than one residential property when the purchase completes, you usually pay an extra 5% on top of every band.
It catches more people than expected. Buying before you have sold and helping a child buy while owning your own home can trigger it, and so can inheriting a share of a property in some cases.
If you replace your main residence but the sale completes later, you pay the surcharge and can reclaim it. The reclaim window has a deadline, so put the date in the diary.
Budgeting for it properly
Stamp duty is cash you have to produce on top of the deposit. It cannot be added to the mortgage in most cases.
Use the free HMRC calculator for your exact figure before you make an offer, not after.
If you are buying in Scotland or Wales
Scotland charges Land and Buildings Transaction Tax. Wales charges Land Transaction Tax. Both work in slices like stamp duty, with their own thresholds and their own first-time buyer treatment.
Do not apply the English figures to a Scottish or Welsh purchase. The starting thresholds differ and so does the surcharge on additional properties.
Who this suits, and who it does not
- You are buying near a threshold such as £300,000 or £500,000
- You already own another property anywhere in the world
- You are buying before your current home has sold
- One of two buyers has owned a home before
- Scottish Land and Buildings Transaction Tax
- Welsh Land Transaction Tax
- Commercial property purchases
- Company purchases of residential property
Check broadband before you make an offer
Broadband speeds can vary street by street, so check the exact address before you commit. Ofcom's free checker shows which broadband speeds and mobile coverage are available at any UK property.
Check broadband at an address (Ofcom)
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Questions people actually ask
How much stamp duty will I pay?
Do first-time buyers pay stamp duty?
When do I pay stamp duty?
Can I add stamp duty to my mortgage?
Why am I being charged the extra 5%?
Can I get the surcharge back?
Is stamp duty different in Scotland and Wales?
Does stamp duty apply to a transfer between family members?
How do I check broadband speed at a property?
Where to go next
- GOV.UK, SDLT residential rates
- GOV.UK, SDLT reliefs
- GOV.UK, Stamp Duty calculator
- MoneyHelper (Money and Pensions Service)
Figures checked on 1 September 2026 and correct for the 2026/27 tax year. Rates change, so check the source before you act on a number.
Get the whole cost of buying priced up
We will introduce you to a mortgage adviser for the loan, and cover the protection side ourselves.
Start a conversationPrefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.
This goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.