Stamp Duty Land Tax in England and Northern Ireland

What is stamp duty?

Stamp duty (officially Stamp Duty Land Tax, or SDLT) is a tax you may have to pay when you buy a residential property in England or Northern Ireland above a set price threshold.

The amount of stamp duty you pay depends on the purchase price of the property and your circumstances, and it is calculated using bands (so different portions of the price are taxed at different rates).

Stamp duty rules vary across the UK. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT), each with its own thresholds and rates. This guide focusses on stamp duty in England and Northern Ireland, where Reeds Rains operates.

When do you have to pay stamp duty?

Stamp duty is reported to HMRC using an SDLT return. The SDLT return and any stamp duty due must usually be filed and paid within 14 days of the “effective date” of the transaction (normally completion). Your solicitor or conveyancer will typically deal with this as part of the conveyancing process.

How much stamp duty will I have to pay now?

Use the stamp duty calculator on this page to get a quick estimate of how much stamp duty (SDLT) you may pay when buying a property in England or Northern Ireland.

Enter the purchase price and select the options that apply to you (for example, first-time buyer or buying an additional property). The calculator applies the current SDLT bands and rates to give an estimated total.

Please note: the calculator provides an estimate for guidance only. Your solicitor or conveyancer will confirm the exact stamp duty due and submit the SDLT return to HMRC.

Stamp duty rates for your main home (standard residential rates)

These stamp duty rates generally apply if, after completion, the property you are buying will be your only residential property:

• 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% 

Because stamp duty is charged in bands, moving into a higher band does not mean you pay that higher rate on the whole price — only on the portion within that band.

Stamp duty for first-time buyers

If you (and anyone you are buying with) are first-time buyers, you may qualify for First-time Buyers’ Relief:

• 0% on the first £300,000
• 5% on the portion from £300,001 to £500,000

If the purchase price is over £500,000, first-time buyer relief generally does not apply and the standard stamp duty rates are used.

Stamp duty on second homes and buy-to-let (higher rates)

If buying the property means you will own more than one residential property (for example, a second home or buy-to-let), you will usually pay higher stamp duty rates. From 31st October 2024, this is typically an additional 5% on top of the standard residential stamp duty rates (subject to the detailed conditions and exceptions in the rules).

Whether higher rates apply can depend on your circumstances (for example, if you are replacing your main residence). Your solicitor or conveyancer can confirm the correct stamp duty position for your purchase.

Buying in Wales?

If you are buying in Wales, you do not pay stamp duty (SDLT). If you're buying in Wales you will pay a Land Transaction Tax with different rates and thresholds.