Key takeaways
- Standard rates start at 2% on the portion above £125,000.
- First-time buyers pay nothing up to £300,000 and 5% from £300,001 to £500,000.
- Buying an additional home usually adds 5% to every band.
- Your solicitor files the return and pays HMRC within 14 days of completion.
Stamp duty explained: what is it?
Stamp Duty Land Tax is a tax on buying land or property in England and Northern Ireland. It’s paid by the buyer, not the seller, and it’s charged on increasing portions of the price, like income tax bands.
Wales and Scotland have their own taxes, so this guide covers buying in Kent and the rest of England.
What are the stamp duty rates?
These rates apply if the home you’re buying will be the only residential property you own:
| Portion of the price | SDLT 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% |
Example: on a £295,000 home you pay 0% on the first £125,000, 2% on the next £125,000 (£2,500) and 5% on the final £45,000 (£2,250). Total: £4,750.
Do first-time buyers pay stamp duty?
First-time buyers get relief if everyone buying is a first-time buyer and the price is £500,000 or less:
- No SDLT on the first £300,000
- 5% on the portion from £300,001 to £500,000
Example: a first-time buyer paying £320,000 pays 5% on £20,000, which is £1,000. Above £500,000 the relief doesn’t apply and standard rates are used. See our first-time buyer guide.
What if I’m buying an additional property?
If you’ll own more than one home after buying, you’ll usually pay an extra 5% on top of every band. That includes buy-to-let and second homes.
You won’t pay the extra 5% if you’re replacing your main residence and sell the old one within 36 months. If you complete your purchase before selling, you pay the higher rates and can claim a refund when the old home sells.
Buyers who aren’t UK resident usually pay a further 2% surcharge.
When and how is stamp duty paid?
Your solicitor works out the tax, submits the SDLT return to HMRC and pays it on your behalf within 14 days of completion. You’ll send the money to your solicitor before completion, along with your deposit.
Include stamp duty in your budget from the start, alongside your deposit, conveyancing costs, survey and removals.
How can I check my stamp duty?
Use HMRC’s SDLT calculator on GOV.UK for your exact figure. Rates can change in a Budget, so check again before you exchange. Your solicitor will confirm the final amount.
FAQs
Stamp duty FAQs
How much stamp duty will I pay on a £250,000 home?
£2,500 at standard rates (2% of the £125,000 above the first £125,000). A first-time buyer pays nothing.
Who pays stamp duty, the buyer or the seller?
The buyer.
Do I pay stamp duty on a shared ownership home?
Special rules apply. Your solicitor will explain whether to pay on the full value or your share.
When is stamp duty due?
Within 14 days of completion. Your solicitor files the return and pays it for you.
Can I add stamp duty to my mortgage?
Not directly. You normally need the funds ready before completion, though some buyers borrow more to free up savings. Speak to your mortgage adviser.
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