When buying a home in England or Northern Ireland, stamp duty is one of the highest upfront costs to plan for. You need to pay it within 14 days of completion, and in most cases, your solicitor handles it by filing the return and settling the bill on your behalf.
How much you pay ultimately depends on three things. The price, whether you are a first-time buyer and whether this is your only home.
Stamp duty at a glance:
- Stamp Duty Land Tax (SDLT) is a tax on buying property or land over a certain price in England and Northern Ireland.
- You must pay it within 14 days of completion. Your solicitor normally files and pays it on completion day, using funds you provide in advance.
- The buyer, NOT the seller, pays stamp duty.
- Stamp duty does not apply to the first £125,000 of a main home.
- First-time buyers pay no Stamp duty on the first £300,000 as long as the home costs £500,000 or less.
- Additional properties have a 5% surcharge on top of the standard rates.
- Each rate only applies to the portion of the price within that band.
*Data is correct as of August 2026. Rates may change. The most recent change was April 2025. Always check the HMRC calculator before you budget. *
What is stamp duty?
Stamp duty, or Stamp Duty Land Tax (SDLT), is a tax paid to HMRC when you buy a property or piece of land above a certain price. At present, stamp duty applies to the portion of the price above £125,000. It applies if you are buying a freehold, a new or existing leasehold or a share through a shared ownership scheme.
Across the UK, the tax has slight differences. In Scotland, for example, LBTT (Land and Buildings Transaction Tax) applies, and in Wales, LTT (Land Transaction Tax) applies. They both have their own rates and thresholds, so figures quoted in this piece should not be assumed as relevant to property purchases in Wales or Scotland.
The amount of stamp duty you pay is based on what is known as the “consideration”. This is the price you agree for the property. Properties worth less than £40,000 are completely exempt from stamp duty.
When do you pay stamp duty?
You must pay Stamp Duty within 14 days of completing your purchase. This is done by sending an SDLT return to HMRC and paying any tax due. Worth remembering, completion is the day you take the keys and move in. It’s not the day you exchange contracts.
In most cases, you’ll not deal with Stamp Duty yourself. Your solicitor or conveyancer will calculate the bill and pay it on your behalf, having collected the funds from you in advance.
If you do not use a solicitor, stamp duty is your responsibility, and you’ll need to ensure you meet the 14-day deadline. If you fail to pay on time, HMRC may issue penalties and charge interest the moment the due date passes. A fine of £100 is applied automatically if your return is up to three months late, rising to £200 beyond that. If the return is still outstanding after 12 months, HMRC can add a further tax-based penalty of up to the full amount of tax owed. Interest is charged separately on any tax paid late, from the due date until it is settled.
How much stamp duty will I pay?
Stamp duty is paid in bands, a little like income tax. Each rate applies to the portion of the property that falls within that band, not the full price.
Our table below shows how much stamp duty you would pay when buying a new property as your main home and when buying a second home.
| Portion of purchase price | Standard rate (main/only home) | Additional property rate |
| Up to £125,000 | 0% | 5% |
| £125,001-£250,000 | 2% | 7% |
| £250,001-£925,000 | 5% | 10% |
| £925,001-£1.5 million | 10% | 15% |
| £1.5 million+ | 12% | 17% |
Stamp duty when buying a second home
If your purchase means you own more than one home, a 5% surcharge is normally added to stamp duty rates.
The surcharge does not apply if you are replacing your main home, as long as the previous residence is sold within 36 months of the new purchase. If you have not sold your old home by completion day, you’ll pay the higher rates upfront but can then apply for a refund once the sale goes through.
Stamp duty for non-UK residents
If you are not a UK resident for tax purposes, you’ll pay a 2% surcharge on any residential property you buy. It is important to remember that this 2% is added to any other rates that may apply. This means that a 10% additional property rate becomes 12% and a 5% standard property rate rises to 7%.
Do first-time buyers pay stamp duty?
First-time buyers do pay stamp duty, but it comes with a generous discount, known as first-time buyers’ relief. If you and anyone you are buying the property with are first-time buyers, stamp duty will apply as follows:
| Portion of House Price | Stamp Duty Rate |
| Up to £300,000 | 0% |
| £300,001-£500,000 | 5% |
| £500,001+ | Normal rates apply |
As you can see, you’ll pay no stamp duty on the first £300,000 of a property if you are a first-time buyer. However, if the property costs more than £500,000, you cannot claim the relief and will pay normal stamp duty rates.
Remember, this is a relief, not an exemption, so you still need to submit an SDLT return to take advantage of it.
What homes are exempt from stamp duty?
Some property transactions are exempt from stamp duty. In many cases, you will not have to submit a return at all. You won’t pay stamp duty if:
- Property is left to you in a will
- No money or other payment changes hands for the transfer
- Freehold property is purchased for less than £40,000
- You buy a lease of 7 years or more where the premium is under £40,000 and annual rent is under £1,000
- The property is transferred to you because of divorce or dissolution of a civil partnership
It’s important to know the difference between an exemption and relief. An exemption means no tax, and in most cases, no need to file. A relief, such as the first-time buyers’ relief, can reduce your bill to zero, but you still need to submit an SDLT return to claim it.
How to work out stamp duty
One of the aspects of stamp duty that confuses people the most is knowing how much they are meant to pay. Stamp duty is banded, so the easiest way to work out what you owe is to calculate the tax due on each portion of the price, then add it all together.
We’ve put together two examples:
Example 1: A house bought for £295,000
- 0% on the first £125,000
- 2% on the next £125,000 (£125,001-£250,000) =£2,500
- 5% on the final £45,000 (£250,001-£295,000) =£2,250
- Total stamp duty: £4,750
Example 2: A first-time buyer buying a house for £500,000
- 0% on the first £300,000
- 5% on the remaining £200,000 =£10,000
- Total stamp duty: £10,000
For more complex purchases, such as an additional property, a leasehold or non-resident purchase, the quickest and most accurate way to see how much you’ll owe is to use the free HMRC Stamp Duty Land Tax Calculator, which applies the current bands automatically.
Can you add stamp duty to a mortgage?
You can add your stamp duty to your mortgage if you are unable to cover the bill with your own funds. You’ll need to borrow more on your mortgage to cover it, and it is important to note that:
- Interest will be applied to the extra borrowing. This means that over the course of the mortgage, you’ll likely pay more than you should for your stamp duty.
- The LTV (Loan-to-value) may increase. By borrowing more, you increase your loan against the property’s value. This could mean you are tipped into a higher LTV band, and therefore a higher interest rate.
You’ll also need to consider that the lender may have strict lending criteria, and by adding your stamp duty, you may find that you are no longer eligible for the mortgage product you hoped for. Speaking to an independent mortgage adviser will help you find the best option for your circumstances.
Considering a new home?
Understanding stamp duty early on helps your moving experience run much more smoothly. You’ll have a clearer idea of what you can afford before you start viewings and know how to fulfil your obligations on time. Ready to take the next step? Browse our houses for sale in Epsom to find a property that aligns with your plans and budget. Contact us today.