UK Stamp Duty Calculator 2025/26

Stamp duty is a tax you pay when buying property or land over a certain price in the UK. The name varies by region: Stamp Duty Land Tax (SDLT) in England and Northern Ireland, Land and Buildings Transaction Tax (LBTT) in Scotland, and Land Transaction Tax (LTT) in Wales. Each region sets its own rates and thresholds independently.

The tax uses progressive bands, meaning you pay different rates on different portions of the property price. This is similar to how income tax works. You do not pay the highest rate on the entire purchase price, only on the portion that falls within that band. For example, buying a £500,000 home in England does not mean paying 5% on the full amount.

2025/26 rates and changes

From 1 April 2025, stamp duty rates in England changed. The nil-rate threshold dropped from £250,000 to £125,000, meaning more buyers now pay tax. First-time buyer relief was also reduced: the nil-rate band fell from £425,000 to £300,000, and the maximum property price for relief dropped from £625,000 to £500,000. The additional property surcharge increased from 3% to 5%.

These changes mean significantly higher costs for many buyers. A £350,000 property now costs £7,500 in stamp duty compared to £5,000 under the previous rates. First-time buyers purchasing at £450,000 previously paid £2,500 but now pay £7,500 with no relief available above £500,000.

First-time buyers

England offers relief for first-time buyers, but only on properties up to £500,000. Within this limit, you pay nothing on the first £300,000 and 5% on any amount between £300,001 and £500,000. If the property exceeds £500,000, you pay standard rates with no relief at all. Both buyers must be genuine first-time buyers with no previous property ownership worldwide.

Scotland offers first-time buyer relief up to £175,000 with no maximum property price cap. Wales provides no first-time buyer relief, so all buyers pay the same rates regardless of whether they have owned before.

Additional properties

Buying a second home, buy-to-let investment, or any additional residential property triggers the higher rates surcharge. In England, this is an extra 5% on top of the standard rates in every band. The surcharge applies even if your existing property is overseas or if you part-own another property. Companies buying residential property also pay the surcharge.

You can reclaim the surcharge if you sell your previous main residence within 3 years of buying the new one. Contact HMRC directly for a refund, which can be claimed up to 12 months after the sale of your old home.

Payment and deadlines

Stamp duty must be paid within 14 days of completion. Your solicitor or conveyancer handles this for you, filing the Land Transaction Return and sending payment to HMRC. Until the tax is paid, you cannot register your ownership at the Land Registry. Late payment incurs automatic penalties starting at £100 and interest charges on the unpaid amount.