What is stamp duty?
Stamp duty, formally Stamp Duty Land Tax, is a tax paid by buyers of property or land in England and Northern Ireland. It is charged in bands on the price. In 2026 home movers pay nothing on the first £125,000, and first-time buyers pay nothing on the first £300,000.
Each rate applies only to the slice of the price within its band. For a single home the rates are 0% up to £125,000 and 2% to £250,000. Then come 5% to £925,000, 10% to £1.5 million and 12% above that. First-time buyers pay 0% on the first £300,000 and 5% up to £500,000, but lose the relief entirely above £500,000.
Buyers of additional homes, such as second homes and buy-to-let, pay an extra 5% on top of each band. Non-UK residents pay a further 2%. The tax must be paid within 14 days of completion, and a solicitor usually handles it. Buyers can use HMRC's online calculator to check what they owe. For example, a home mover buying a £300,000 home would pay £5,000.
Scotland has its own Land and Buildings Transaction Tax, and Wales has Land Transaction Tax. Many economists dislike stamp duty because it discourages people from moving home, even when a move would suit them better. Some propose replacing it with an annual property tax. It still raises billions each year, which makes it hard to scrap.
Stamp duty in England and Northern Ireland, plus council tax and business rates in England.
How it works
- Stamp duty nil-rate band: No stamp duty below this price. Stamp duty taxes moving, so it locks people into the wrong homes and gums up the market.
- Stamp duty 2% band rate: Applies to the slice of price from £125,000 to £250,000.
- Stamp duty 5% band rate: The slice from £250,000 to £925,000. Most stamp duty in London and the South East comes from this band.
- Stamp duty 10% band rate: The slice from £925,000 to £1.5m. High rates mean fewer expensive homes change hands.
- Stamp duty 12% band rate: The top slice above £1.5m. Prime London sales fell sharply after rates rose here.
- First-time buyer nil-rate threshold: First-time buyers pay nothing up to this price. Much of the saving gets priced into what sellers ask.
- Additional dwellings surcharge: Extra points on every band for second homes. Helps first-time buyers compete but may reduce rental supply.
- Non-resident surcharge: Extra 2% for buyers not resident in the UK. Popular, but raises little.
The left tends to support higher charges on second homes and landlords to help first-time buyers compete.
The right tends to favour cutting or abolishing stamp duty, arguing it blocks people moving and gums up the housing market.
Britain is split. Now you decide.
In the Population Decides Budget you can reshape property taxes and test whether cutting stamp duty gets the housing market moving.
Play Population Decides freeCommon questions
Do first-time buyers pay stamp duty?
Not on the first £300,000 if the home costs £500,000 or less. Above £500,000 normal rates apply.
Is there stamp duty in Scotland?
No. Scotland charges Land and Buildings Transaction Tax instead, with its own rates.
Do you pay stamp duty on a second home?
Yes. Buyers of additional homes pay an extra 5% on top of the standard rates.