| Standard nil-rate band | £125,000 |
|---|---|
| First-time buyer relief | 0% to £300,000; 5% to £500,000; none above £500,000 |
| Additional property surcharge | 5% on top of standard rates |
| Non-UK resident surcharge | 2% on top of all other rates |
| When to file and pay | Within 14 days of completion |
| Scotland and Wales | LBTT and LTT apply instead |
What is stamp duty and who pays it?
Stamp duty is a tax paid by the buyer, not the seller, when you buy a freehold or leasehold property. In England and Northern Ireland it is called Stamp Duty Land Tax (SDLT) and is collected by HMRC.
Your solicitor or conveyancer usually files the return and pays the tax for you. It must be paid within 14 days of completion. Late payment can lead to penalties and interest. Stamp duty cannot normally be added to your mortgage, so budget for it in cash alongside your deposit.
What are the current stamp duty rates?
For a main home, SDLT is charged only on the portion of the price within each band. These rates have applied since 1 April 2025 and remain in place as at October 2026.
| Portion of price | Main home | Additional property |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5 million | 10% | 15% |
| Over £1.5 million | 12% | 17% |
Non-UK residents add 2% to each band. Rates can change at any Budget, so check the latest position before you exchange.
How does first-time buyer relief work?
First-time buyers pay no stamp duty on the first £300,000 and 5% on the portion from £300,001 to £500,000. If the price is above £500,000, no relief applies and the standard rates are used on the whole price.
To qualify, every buyer must be a first-time buyer who has never owned a home anywhere in the world, and the property must be their main residence. If one joint buyer has owned before, the relief is lost. See our first-time buyer mortgages page.
When do you pay the 5% surcharge on additional properties?
The higher rates apply if you will own more than one residential property worth £40,000 or more at the end of the day of purchase, and you are not replacing your main home. They usually apply to buy-to-let purchases and second homes. Property owned overseas counts.
If you buy a new main home before selling your old one, you pay the higher rates at first. You can claim a refund if you sell your previous main home within three years. Companies pay the higher rates on any residential purchase, including their first.
How much stamp duty would I pay? Worked examples
These examples use the rates in force in England and Northern Ireland as at October 2026. They are for illustration only.
| Scenario | Price | SDLT |
|---|---|---|
| First-time buyer | £300,000 | £0 |
| First-time buyer | £450,000 | £7,500 |
| Home mover | £300,000 | £5,000 |
| Home mover | £500,000 | £15,000 |
| Additional property (UK resident) | £500,000 | £40,000 |
| Home mover | £1,500,000 | £93,750 |
| Non-UK resident, main home | £2,000,000 | £193,750 |
For example, a £500,000 home mover pays 0% on £125,000, 2% on the next £125,000 (£2,500) and 5% on the final £250,000 (£12,500). Try our stamp duty calculator for your own figures.
Who pays the non-resident surcharge?
Buyers who were not present in the UK for at least 183 days in the 12 months before purchase pay an extra 2%. It applies on top of all other rates, including first-time buyer and additional property rates.
If one joint buyer is non-resident, the surcharge usually applies to the whole purchase. A spouse or civil partner who is UK resident can bring both buyers within the resident rules. You may reclaim the 2% if you later spend 183 days in the UK within the qualifying period. This matters for many of our international clients.
What about companies, Scotland and Wales?
Companies buying a residential property over £500,000 may pay a flat 17% rate. Reliefs are available, for example where the property is used in a genuine rental business. See our guide to buying through a limited company.
Scotland uses Land and Buildings Transaction Tax (LBTT), and Wales uses Land Transaction Tax (LTT). Both have their own bands and their own surcharges for additional homes. Take advice from your solicitor or a tax adviser on complex purchases. OMB arranges mortgages but does not give tax advice.
Are there other ways to reduce stamp duty?
Options are limited, and you should never use a scheme that claims to avoid SDLT artificially. HMRC actively challenges these. Legitimate points to check include:
- Whether first-time buyer relief applies to every buyer.
- Whether you are replacing your main home, so the surcharge does not apply.
- Whether part of the price relates to fixtures or chattels, such as furniture, which may be excluded if fairly valued.
- Whether a mixed-use property, such as a shop with a flat above, qualifies for non-residential rates.
Your solicitor can confirm what applies to your purchase.
Sources
- GOV.UK: Stamp Duty Land Tax residential property rates
- GOV.UK: Buying an additional residential property
- GOV.UK: Rates of SDLT for non-UK residents
- GOV.UK: SDLT for corporate bodies
Frequently asked questions
How much is stamp duty on a £400,000 house?
For a home mover buying a main residence, SDLT on £400,000 is £10,000: nothing on the first £125,000, £2,500 on the next £125,000 and £7,500 on the remaining £150,000. A first-time buyer would pay £5,000. A buyer of an additional property would pay £30,000.
Do first-time buyers pay stamp duty?
Not on homes up to £300,000. Between £300,001 and £500,000, first-time buyers pay 5% on the portion above £300,000. Above £500,000, relief is lost entirely and standard rates apply. All buyers must be first-time buyers and the home must be their main residence.
Can I add stamp duty to my mortgage?
Usually not directly. Lenders lend against the property value, and stamp duty must be paid within 14 days of completion. Some buyers fund it by using a larger mortgage and a smaller deposit, but this increases borrowing and the interest you pay overall.
Do I pay the 5% surcharge if I own a property abroad?
Yes, in most cases. HMRC counts residential property you own anywhere in the world when deciding whether the higher rates apply. If you are replacing your main home, or you sell your previous main home within three years, you may avoid or reclaim the surcharge.
How do I get the second home surcharge refunded?
If you bought a new main home before selling your old one, you can claim a refund once the old home is sold, provided the sale is within three years. The claim must be made within 12 months of the sale or of filing the SDLT return, whichever is later.
Is stamp duty changing in the October 2026 Budget?
The Autumn Budget is due on 28 October 2026. As at early October 2026, no SDLT changes have been announced. Rates can change at short notice, so check the latest position with your solicitor before exchanging contracts.
Does stamp duty apply in Scotland and Wales?
No. Scotland has Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT). Both have different bands, reliefs and surcharges for additional homes. SDLT covers England and Northern Ireland only.
Who pays stamp duty, the buyer or the seller?
The buyer pays stamp duty. The seller does not pay SDLT on a sale, although they may have other costs such as estate agent fees or capital gains tax on an investment property. Your solicitor normally collects the money from you before completion and pays HMRC.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.