Stamp Duty When Buying a House
Stamp Duty Land Tax (SDLT) is the tax you pay when you buy a residential property in England or Northern Ireland above a certain price. Scotland has LBTT and Wales has LTT — different names, similar concept. This guide covers the English system.
Standard SDLT Bands (2024–25)
| Property price band | SDLT rate |
|---|---|
| Up to £250,000 | 0 % |
| £250,001 – £925,000 | 5 % |
| £925,001 – £1,500,000 | 10 % |
| Over £1,500,000 | 12 % |
SDLT is a slab tax — you only pay the higher rate on the portion above each threshold, not on the entire price.
First-Time Buyer Relief
If you are a first-time buyer purchasing a property up to £625,000, you pay no SDLT on the first £425,000 and 5 % on the portion between £425,001 and £625,000. If the property costs more than £625,000, you lose the relief entirely and pay standard rates.
Additional Property Surcharge
Buying a second home or a buy-to-let? You pay a 3 % surcharge on top of the standard rates on the entire purchase price (for properties over £40,000). This applies even if your first property is overseas. You may be able to reclaim the surcharge if you sell your previous main residence within 36 months of buying the new one.
Worked Examples
Example 1: £350,000 (standard buyer)
- First £250,000 at 0 % = £0
- Next £100,000 at 5 % = £5,000
- Total SDLT = £5,000
Example 2: £500,000 (first-time buyer)
- First £425,000 at 0 % = £0
- Next £75,000 at 5 % = £3,750
- Total SDLT = £3,750
Example 3: £350,000 (additional property)
- Standard SDLT = £5,000 (as above)
- 3 % surcharge on £350,000 = £10,500
- Total SDLT = £15,500
Want to calculate stamp duty for your exact property price? Use our free Stamp Duty Calculator on CalcPad.
Rates shown are for England and Northern Ireland. Scotland and Wales have their own systems. Always verify with HMRC or a solicitor before completing a purchase.