Stamp Duty Land Tax is the slice HMRC takes when you buy property in England or Northern Ireland, charged in bands on the price above £125,000.
Stamp Duty, properly Stamp Duty Land Tax (SDLT), is the tax you pay when buying a home or land in England and Northern Ireland. It is one of the biggest single costs of moving, and after a temporary discount ended on 31 March 2025, the starting threshold fell back to £125,000, pulling many more buyers into paying it.
Like Income Tax, SDLT is a tiered tax. You do not pay a single rate on the whole price; you pay each rate only on the slice of the price that falls in each band. The standard residential bands for 2025/26 are:
| Portion of price | Standard rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Buyers of additional properties pay a 5% surcharge on top of each band (the surcharge rose from 3% to 5% on 31 October 2024). Non-UK residents pay a further 2% surcharge.
Suppose Jordan, a home-mover (not a first-time buyer), buys a house for £420,000 in 2025/26.
Total SDLT = £11,000.
Now compare a first-time buyer purchasing the same £420,000 home. Because the price is under £500,000, first-time buyer relief applies:
Total SDLT = £6,000, a £5,000 saving. Our Stamp Duty calculator handles all the bands, surcharges, and reliefs automatically.
SDLT must be reported and paid within 14 days of completion, normally handled by your solicitor or conveyancer. Miss it and HMRC charges penalties and interest.
If you buy in Scotland, you pay Land and Buildings Transaction Tax (LBTT) instead, with a nil-rate band up to £145,000 (£175,000 for first-time buyers) and an Additional Dwelling Supplement of 8%. In Wales, you pay Land Transaction Tax (LTT), which has no first-time buyer relief but a higher £225,000 starting threshold. Always check which tax applies where the property sits, not where you live.
Note that Stamp Duty is a cost of buying; when you later sell at a profit, a separate tax, Capital Gains Tax, may apply if the property is not your main home.
The return of the £125,000 threshold in April 2025 quietly added thousands to the bill for ordinary movers. Always budget Stamp Duty before you fix your maximum offer.
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