Understanding Stamp Duty: How Much Will You Pay?
Stamp duty is a tax imposed on property purchases in the UK, but it only applies when the property’s price surpasses a set threshold. The exact amount you owe depends on various factors, including property value, location, and whether you are a foreigner, first-time buyer, homeowner, or investor. Use our stamp duty calculator below to determine your tax liability instantly. For a comprehensive breakdown of how stamp duty operates across England, Northern Ireland, Scotland, and Wales, along with key deadlines, refer to our full guide.
Stamp Duty Calculator
What is Stamp Duty?
Stamp duty is the general term used to describe property transaction taxes across the UK. However, the official names differ by region:
- England & Northern Ireland: Stamp Duty Land Tax (SDLT)
- Scotland: Land and Buildings Transaction Tax (LBTT)
- Wales: Land Transaction Tax (LTT)
Despite the different names, each UK nation follows a progressive tax system, meaning different portions of a property’s price are taxed at different rates rather than applying a single percentage to the total purchase price.
Stamp duty can be a significant cost, with homebuyers in England and Northern Ireland paying over £10 billion in stamp duty in 2024 (Source: Coventry Building Society). Below, we explain how it works in detail and provide a calculator to help you estimate your costs.
Understanding Stamp Duty: How Much Will You Pay?
England & Northern Ireland (SDLT)
From April 1, 2025, stamp duty rates will be structured as follows:
| Purchase Price | Main Residence | Second Home/Additional Property |
|---|---|---|
| Up to £125,000 (£300,000 for first-time buyers) | 0% | 5% |
| £125,000 – £250,000 | 2% | 7% |
| £250,001 – £925,000 | 5% | 10% |
| £925,001 – £1,500,000 | 2% | 15% |
| £1,500,001+ | 5% | 17% |
- First-time buyers purchasing properties up to £500,000 qualify for a £300,000 tax-free threshold.
- If an additional property is purchased for less than £40,000, the higher surcharge does not apply.
Scotland (LBTT)
Scotland has different tax thresholds, including additional relief for first-time buyers.
| Purchase Price | Main Residence | Second Home/Additional Property |
|---|---|---|
| Up to £145,000 (£175,000 for first-time buyers) | 0% | 8% |
| £145,001 – £250,000 | 2% | 10% |
| £250,001 – £325,000 | 5% | 13% |
| £325,001 – £750,000 | 10% | 18% |
| £750,001+ | 12% | 20% |
Wales (LTT)
Unlike England and Scotland, Wales does not offer specific relief for first-time buyers.
| Purchase Price | Main Residence | Second Home/Additional Property |
|---|---|---|
| Up to £225,000 | 0% | 5% (on up to £180,000) / 8.5% (on £180,001 – £250,000) |
| £225,001 – £400,000 | 6% | 10% |
| £400,001 – £750,000 | 7.5% | 12.5% |
| £750,001 – £1,500,000 | 10% | 15% |
| £1,500,001+ | 12% | 17% |
Stamp Duty for First-Time Buyers
First-time buyers can benefit from reduced rates or exemptions, depending on the country:
England & Northern Ireland
No stamp duty on the first £300,000 for homes up to £500,000
Scotland
No LBTT on the first £175,000
Wales
No specific relief, but 0% tax on properties up to £225,000
If you have ever owned or inherited property—even if you never lived in it—you do not qualify as a first-time buyer
Stamp Duty on Buy-to-Let & Second Homes
A higher rate of stamp duty applies to additional property purchases:
England & Northern Ireland
Extra 5 percentage points on each tax band
Scotland
Extra 8 percentage points
Wales
Extra 5 percentage points
For example, in England, purchasing a £300,000 second home incurs a £17,500 stamp duty charge, compared to £2,500 for a primary residence.
Stamp Duty for Foreign Buyers
Foreign buyers purchasing property in the UK are subject to an additional surcharge:
England & Northern Ireland
+2% on each tax band
Scotland
No additional surcharge
Wales
No additional surcharge
For instance, if a non-UK resident purchases a £500,000 property in England, they would pay an extra 2% tax (£10,000) on top of the standard stamp duty rates. This surcharge applies even if the buyer intends to live in the property.
When Must You Pay Stamp Duty?
Stamp duty payment deadlines vary by region:
Region
- England & Northern Ireland
- Scotland & Wales
Payment Deadline
- Within 14 days of completion
- Within 30 days of completion
Failure to pay on time may result in penalties and interest charges. In most cases, your solicitor will handle the payment for you.
How to Pay Stamp Duty
Stamp duty payment deadlines vary by region:
England & Northern Ireland (Paid to HMRC):
- Submit a stamp duty return online at Gov.uk.
- Obtain a Unique Transaction Reference Number (UTRN).
- Pay via online banking, debit card, or cheque.
Scotland (Paid to Revenue Scotland):
- Submit an online return at Revenue Scotland.
- Use a 13-character reference code beginning with ‘RS’.
- Pay via bank transfer (Faster Payments, Bacs, or CHAPS).
Wales (Paid to Welsh Revenue Authority):
- Submit a tax return at Welsh Revenue Authority.
- Use the format: "Postcode / Surname of Buyer".
- Pay via bank transfer (Bacs or CHAPS).
Adding Stamp Duty to Your Mortgage
While it is possible to add stamp duty to your mortgage, doing so increases long-term costs due to interest. For example:
- Borrowing £2,500 extra at 5% interest over 25 years results in £6,000 total repayment.
- Adding stamp duty may also impact your Loan-to-Value (LTV) ratio, affecting mortgage rates.
We recommend consulting a mortgage advisor before making this decision.
Stamp duty can be a substantial cost when buying a home, but understanding the rules and potential reliefs can help minimize your expenses. Use our stamp duty calculator to get an instant estimate and consult our detailed guide for further insights. If you have questions about your specific situation, speak with a qualified conveyancer or tax advisor for expert guidance.