How Stamp Duty Is Calculated
SDLT works in bands, like income tax. Each rate only applies to the slice of the purchase price within that band — not the full amount. So on a £300,000 purchase at standard rates: 0% on the first £125,000, 2% on the next £125,000, and 5% on the remaining £50,000, giving a total of £4,000.
First-Time Buyer Relief
First-time buyers pay no SDLT on the first £300,000 and 5% on the portion between £300,001 and £500,000. If the purchase price exceeds £500,000, no relief applies and standard rates are charged on the full price. Both buyers must be first-time buyers in a joint purchase for the relief to apply.
Additional Property Surcharge
Buying a second home, a buy-to-let property, or any additional residential property attracts a 5% surcharge on top of all standard SDLT bands. This applies from the first pound and was increased from 3% to 5% in October 2024. The surcharge can be reclaimed if you sell your previous main residence within three years.
Scotland & Wales
SDLT only applies in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT), both with different rate bands. This calculator covers SDLT only.
Frequently Asked Questions
How is stamp duty calculated in the UK?
SDLT is calculated in bands, similar to income tax. Each band rate only applies to the slice of the purchase price within it. For example, on a £300,000 standard purchase: 0% on the first £125,000, 2% on the next £125,000 (£125,001–£250,000), and 5% on the final £50,000 (£250,001–£300,000). Total SDLT: £4,000.
Do first-time buyers pay stamp duty?
First-time buyers pay no SDLT on the first £300,000 and 5% on the portion between £300,001 and £500,000. If the purchase price is above £500,000, first-time buyer relief does not apply and standard rates are charged on the full price. Both buyers must qualify as first-time buyers in a joint purchase.
How much extra stamp duty do you pay on a second home?
From October 2024, buyers of additional residential properties pay a 5% surcharge on top of all standard SDLT rates. This applies from the first pound of the purchase price. The surcharge may be reclaimed if you sell your previous main residence within three years of completing the new purchase.
When do you pay stamp duty?
SDLT must be paid within 14 days of completing your property purchase. Your solicitor or conveyancer will typically handle the SDLT return and payment on your behalf as part of the conveyancing process.
Does stamp duty apply in Scotland and Wales?
No. Scotland has Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT), each with their own rate bands and thresholds. This calculator only covers SDLT for properties in England and Northern Ireland.