What is stamp duty and who pays it in the UK?

Stamp Duty Land Tax (SDLT) is a tax paid by the buyer when purchasing residential or commercial property in England and Northern Ireland over a certain price threshold. The buyer's solicitor or conveyancer typically files the SDLT return and transfers payment to HMRC within 14 days of completion. SDLT applies to freehold purchases, leasehold purchases over £125,000, and transfers of property in exchange for consideration.

How is stamp duty calculated in 2026?

SDLT uses a tiered slice system — each portion of the property price falling within a band is taxed at that band's rate. For residential property in 2026: 0% on the first £125,000, 2% on £125,001–£250,000, 5% on £250,001–£925,000, 10% on £925,001–£1,500,000, and 12% above £1,500,000. Surcharges add to every band rate. Our stamp duty calculator does the maths automatically.

How much stamp duty do I pay calculator gives accurate results?

Yes — this stamp duty calculator uses the official HMRC SDLT bands effective from 1 April 2025 (applicable for 2026 transactions). Enter your property price, buyer type, and residency status and you'll see the exact SDLT due, plus a band-by-band breakdown. The figure matches what your solicitor will calculate on completion. Always double-check edge cases like mixed-use property or six-or-more bulk purchases with a professional.

Do first-time buyers pay stamp duty in the UK?

First-time buyers pay no SDLT on properties up to £300,000, and 5% on the slice between £300,001 and £500,000. Above £500,000, the relief is lost entirely and standard rates apply on the full price. Both buyers in a joint purchase must qualify as first-time buyers — if either party has previously owned residential property anywhere in the world, no relief applies.

What is the additional property stamp duty surcharge?

The additional property surcharge is +5% on top of every SDLT band rate for buyers who already own one or more residential properties anywhere in the world. It applies to second homes, holiday homes, buy-to-let purchases, and properties bought by limited companies. The surcharge increased from 3% to 5% on 31 October 2024 (Autumn Budget). On a £400,000 second home, the surcharge adds £20,000 to the SDLT bill.

What is the buy-to-let stamp duty calculator rate?

Buy-to-let purchases attract the same 5% additional property surcharge on every SDLT band. So a £300,000 buy-to-let in 2026 pays: 5% on the first £125,000 (£6,250), 7% on the next £125,000 (£8,750), and 10% on the final £50,000 (£5,000) — total £20,000. Compare this with £2,500 SDLT for the same property as a sole main residence. Our buy to let stamp duty calculator handles this automatically when you select 'Additional property'.

How much is stamp duty on a second home in 2026?

Stamp duty on a second home in 2026 = standard SDLT + 5% additional property surcharge across all bands. Example: £500,000 second home pays £2,500 (0% on first £125K + 2% on £125K–£250K) + £12,500 (5% on £250K–£500K) standard, plus £25,000 (5% surcharge on the full £500K above £40K) = £40,000 total. Use the second home stamp duty calculator to see your exact figure.

What is the non-resident stamp duty surcharge?

Non-UK residents pay an extra 2% on top of every SDLT band rate when buying residential property in England or Northern Ireland. Introduced in April 2021, the surcharge applies to individuals who have not been physically present in the UK for at least 183 days in the 12 months before purchase, and to non-UK resident companies. The 2% surcharge stacks with the 5% additional property surcharge, so a non-resident buying a second home pays an extra 7% across the board.

What are the stamp duty exemptions in the UK?

Common stamp duty exemptions: transfers between spouses or civil partners, property left in a will, transfers on divorce or dissolution, gifts where no money changes hands and no mortgage is taken on, certain freehold purchases under £40,000, and zero-rated commercial property transactions under £150,000. Stamp duty exemptions also apply to certain charity and pension fund acquisitions. Always check eligibility with a conveyancer before claiming.

When is stamp duty due on a property purchase?

SDLT must be paid to HMRC within 14 days of the effective date of the transaction (usually completion day). Your solicitor or conveyancer normally files the SDLT1 return and transfers payment from your funds. Missing the 14-day deadline triggers automatic penalties (£100 fixed) plus daily interest on the unpaid amount. Penalties escalate quickly — £200 after 6 months, then a tax-geared penalty up to 100% of the SDLT owed.

Can I claim back the additional property stamp duty surcharge?

Yes — if you bought a new main residence before selling your previous one and paid the 5% surcharge, you can reclaim it from HMRC if you sell the old main residence within 36 months of buying the new one. The refund claim must be made within 12 months of the sale of the previous home, or 12 months of the SDLT return filing date, whichever is later. Submit form SDLT16 or apply online via your Government Gateway account.

What are the stamp duty rates for non-residential property?

Non-residential and mixed-use property (e.g. shops, offices, land, mixed flat-above-shop) uses different SDLT bands: 0% on the first £150,000, 2% on £150,001–£250,000, and 5% above £250,000. First-time buyer relief and the 5% additional property surcharge do not apply to non-residential property. Mixed-use is often cheaper than pure residential at the same price — but HMRC scrutinises mixed-use claims carefully.

Is stamp duty different in Scotland and Wales?

Yes. Scotland uses Land and Buildings Transaction Tax (LBTT), administered by Revenue Scotland — different bands, different first-time buyer threshold (£175,000), and a higher Additional Dwelling Supplement (6% as of 2025). Wales uses Land Transaction Tax (LTT), administered by the Welsh Revenue Authority — no general first-time buyer relief but higher zero-rate threshold (£225,000). This stamp duty calculator covers England and Northern Ireland only; check Revenue Scotland or WRA for those nations.

How accurate are online stamp duty calculators?

A well-built SDLT calculator that uses the current HMRC bands is accurate to the penny for standard residential purchases. Edge cases that need professional advice: properties with annexes, mixed-use boundary cases, linked transactions, six-or-more bulk purchases (now non-residential rates), Multiple Dwellings Relief replacement scenarios, and trust or corporate purchases. Always have your solicitor verify the SDLT figure before completion.

Is stamp duty tax-deductible against rental income?

No — SDLT paid on a buy-to-let purchase cannot be deducted from rental income for income tax. However, SDLT is treated as a capital cost: it's added to the property's acquisition cost when calculating Capital Gains Tax on a future sale. So the relief is deferred until disposal, not lost. Stamp duty paid on a main residence has no tax relief at all (and the main residence is usually CGT-exempt anyway).

Do limited companies pay more stamp duty than individuals?

Yes — limited companies always pay the additional property surcharge (5%) on every residential purchase, even when buying their first property. Companies purchasing residential property over £500,000 may also be liable for the 15% flat rate under the Annual Tax on Enveloped Dwellings (ATED) regime, unless an exemption applies (e.g. genuine property rental business). Specialist tax advice is essential before structuring property purchases through a company.

What other costs are involved in buying a house in the UK?

Beyond SDLT, budget for: solicitor/conveyancer fees (£1,000–£2,000), Land Registry fees (£20–£910 sliding scale), property survey (£300–£1,500 depending on type), mortgage arrangement fee (£0–£2,000), mortgage valuation (£150–£1,500), removal costs (£300–£2,000), buildings and contents insurance, leasehold notice fees if applicable, and mortgage protection insurance. Total non-SDLT costs typically add 1.5%–3% of the property price.

How can I reduce my stamp duty bill legally?

Legal ways to reduce SDLT: qualify for first-time buyer relief, claim Multiple Dwellings Relief replacement on linked transactions, ensure correct mixed-use classification, time the sale of your previous main residence within 36 months to reclaim the surcharge, use shared ownership (you pay SDLT only on the share you buy, or opt to pay on the full market value), and confirm correct property type classification. Avoid 'SDLT mitigation schemes' marketed by promoters — HMRC routinely challenges these and you may owe back tax plus penalties.

payments

Stamp Duty Calculator

calculators.im ↗

home Property Details

Property Price (£)

Buyer Type

Property Type

Non-UK resident (adds +2% surcharge — applies if outside UK 183+ days in past 12 months)

payments Your Stamp Duty

Total SDLT Due

£5,000

Effective rate 1.43%

Property Price

£350,000

Total Cost

£355,000

Band-by-Band Breakdown

Input Values

Property Price

Buyer Type

Standard buyer (replacing main residence)

First-time buyer

Additional property (second home / buy-to-let)

lightbulb Tips

•FTB relief vanishes above £500,000 — every £ over costs you
•Both joint buyers must qualify as first-time
•Additional property surcharge: +5% on every band
•Non-UK resident? Add +2% on top (stacks with 5%)
•SDLT due within 14 days of completion