How does UK stamp duty work? Rates, bands and the surcharges (2025/26)
Stamp Duty Land Tax (SDLT) is the tax you pay when you buy a property or land in England or Northern Ireland above a certain price. It's one of the biggest one-off costs of moving, yet it's widely misunderstood — partly because the rules differ for first-time buyers and for people buying an additional property. Here's how it works for the 2025/26 tax year.
Where stamp duty applies
SDLT covers England and Northern Ireland. Scotland has its own version (Land and Buildings Transaction Tax, LBTT) and Wales has Land Transaction Tax (LTT), both with different bands. The principle is the same everywhere: the more the property costs, the higher the rate — but only on the slice of the price within each band.
Standard rates for 2025/26
For someone buying their main home (and not a first-time buyer), the bands from April 2025 are:
- 0% on the portion up to £125,000
- 2% on the portion from £125,001 to £250,000
- 5% on the portion from £250,001 to £925,000
- 10% on the portion from £925,001 to £1.5 million
- 12% on anything above £1.5 million
Like income tax, these bands are marginal — you don't pay one flat rate on the whole price, only each rate on the part of the price that falls in that band.
First-time buyer relief
If you're a first-time buyer you pay no SDLT on the first £300,000, and 5% on the portion from £300,001 to £500,000. If the property costs more than £500,000 the relief doesn't apply at all and you pay the standard rates instead. On a joint purchase, both buyers must be first-time buyers to qualify.
The additional-property surcharge
Buying a second home or a buy-to-let? You pay a 5% surcharge on top of the standard rates, across the whole price (this surcharge rose from 3% to 5% in late 2024). It's why landlords and second-home buyers face a much larger bill than someone buying their only home.
£350,000 home, standard purchase: 0% on the first £125,000 + 2% on the next £125,000 (£2,500) + 5% on the final £100,000 (£5,000) = £7,500.
Same home, first-time buyer: 0% up to £300,000 + 5% on £50,000 = £2,500.
Same home, additional property: £7,500 standard + 5% of £350,000 (£17,500) = £25,000.
Work out your bill
Stamp Duty Calculator
Enter the price and your buyer type — first-time, home mover or additional property — for a band-by-band breakdown of exactly what you'll pay.
Open the calculator →When and how you pay
SDLT is due within 14 days of completion. In practice your solicitor or conveyancer files the return and pays HMRC on your behalf, then bills you — so you rarely deal with HMRC directly. You can't usually add it to your mortgage, so it needs to be cash you have ready alongside the deposit.
Common mistakes
Forgetting to budget for it. On a £350,000 home a mover pays £7,500 — money that must be available on completion, separate from the deposit.
Assuming first-time relief always applies. It vanishes entirely above £500,000.
Overlooking the surcharge timing. If you buy a new main home before selling the old one, you may pay the 5% surcharge upfront and reclaim it later — plan for the cashflow.