How the tax actually works
"Stamp Duty" is the catch-all name for the tax on buying a home, but the UK has three separate systems with different bands. The key idea in all of them: the rate applies only to each slice of the price inside a band — not to the whole price. That is why a £350,000 home costs far less than 5% of £350,000.
England & Northern Ireland — SDLT (2026/27)
| Price slice | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5m | 10% |
| Over £1.5m | 12% |
Worked example — a £350,000 home: £0 on the first £125,000, 2% (£2,500) on the next £125,000, and 5% (£5,000) on the final £100,000. Total £7,500. GOV.UK — SDLT · 2026/27
First-time buyers in England
If you are a first-time buyer in England or Northern Ireland, the first £300,000 of a home up to £500,000 is tax-free, and you pay 5% on the portion from £300,001 to £500,000. Over £500,000, the relief disappears entirely and standard rates apply. Worked examples:
| House price | First-time buyer | Standard rate | You save |
|---|---|---|---|
| £250,000 | £0 | £2,500 | £2,500 |
| £300,000 | £0 | £5,000 | £5,000 |
| £350,000 | £2,500 | £7,500 | £5,000 |
| £450,000 | £7,500 | £12,500 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
| £520,000 | £16,000 | £16,000 | £0 |
The relief saves the same £5,000 across most of the range, because you pay 5% instead of the standard 0%/2%/5% blend. Above £500,000 the benefit vanishes — an important cliff edge if you are close to the limit.
Scotland — LBTT (2026/27)
| Price slice | Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Over £750,000 | 12% |
Worked example — the same £350,000 home: £0 up to £145,000, 2% (£2,100) to £250,000, 5% (£3,750) to £325,000, then 10% (£2,500) on the final £25,000. Total £8,350. Scottish first-time buyers get a nil-rate band raised to £175,000. gov.scot — LBTT · 2026/27
Wales — LTT (2026/27)
| Price slice | Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1.5m | 10% |
| Over £1.5m | 12% |
Worked example — the same £350,000 home: £0 up to £225,000, then 6% (£7,500) on the £125,000 above it. Total £7,500. Wales has no separate first-time buyer relief. gov.wales — LTT · 2026/27
What is not included
These figures are for a single main home. They do not include the higher rates for additional properties (buy-to-let or second homes, an extra 5% in England from 2025), nor company purchases. Stamp Duty is paid on the price before any mortgage deposit, and is payable within 14 days of completion in England and Wales, or 30 days in Scotland.
Frequently asked questions
Do I pay Stamp Duty on the whole house price?
Is Stamp Duty different for first-time buyers?
Does my mortgage or deposit reduce Stamp Duty?
When do I have to pay it?
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