How Stamp Duty is worked out
Stamp Duty Land Tax is charged in slices, like income tax: each rate applies only to the part of the price inside its band. For a home that will be the only residential property you own:
| 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% |
| Above £1.5 million | 12% |
First-time buyers
If you and everyone buying with you have never owned a home anywhere in the world, you pay nothing up to £300,000 and 5% on the part from £300,001 to £500,000. If the price is over £500,000 the relief does not apply at all and the normal rates are used.
Second homes and buy-to-let: the 5% surcharge
If you will own more than one residential property after buying (anywhere in the world), you usually pay 5% on top of every band – unless you are replacing your main home. The surcharge does not apply to properties under £40,000. If you sell your old main home within 36 months you can claim the extra back.
Non-UK residents: the 2% surcharge
Buyers who were not in the UK for at least 183 days in the 12 months before buying usually pay a further 2% on top.
Worked examples
- Home mover, £295,000: 0% on £125,000 + 2% on £125,000 (£2,500) + 5% on £45,000 (£2,250) = £4,750.
- First-time buyer, £500,000: 0% on £300,000 + 5% on £200,000 = £10,000.
- Second home, £295,000: £4,750 + 5% of £295,000 (£14,750) = £19,500.
You must file an SDLT return and pay within 14 days of completion – your solicitor or conveyancer normally does this for you.
When you pay and other buying costs
Remember to budget for the other costs of buying too: solicitor or conveyancer fees, searches, the survey, mortgage fees and removal costs. Use our loan calculator to see what a mortgage would cost each month.
Shared ownership and new-builds
New-build homes pay the same rates as older homes. Shared ownership and some other purchases have special rules (for example paying on the whole market value up front, or in stages). If your purchase is unusual, use HMRC’s own SDLT calculator or ask your solicitor to confirm the figure.