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 sliceRate
Up to £125,0000%
£125,001 – £250,0002%
£250,001 – £925,0005%
£925,001 – £1.5m10%
Over £1.5m12%

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 priceFirst-time buyerStandard rateYou 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 sliceRate
Up to £145,0000%
£145,001 – £250,0002%
£250,001 – £325,0005%
£325,001 – £750,00010%
Over £750,00012%

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 sliceRate
Up to £225,0000%
£225,001 – £400,0006%
£400,001 – £750,0007.5%
£750,001 – £1.5m10%
Over £1.5m12%

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?
No. Only the portion of the price inside each band is taxed at that band's rate. This keeps the tax progressive and means most buyers pay a blend of rates, not one rate on everything.
Is Stamp Duty different for first-time buyers?
In England, first-time buyers pay nothing up to £300,000 (homes up to £500,000). In Scotland the nil-rate band is £175,000 for first-time buyers. Wales has no separate relief.
Does my mortgage or deposit reduce Stamp Duty?
No. The tax is based on the full purchase price, not the amount you borrow. Your deposit size makes no difference to the calculation.
When do I have to pay it?
In England and Wales, SDLT/LTT must be paid within 14 days of completion. In Scotland, LBTT is due within 30 days. Your solicitor usually handles this as part of the purchase.

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Educational tools only — not financial advice. Rates can change; verify against the latest official guidance before buying.