Yes, you will need to pay for stamp duty when you buy land or a house – that’s because stamp duty is a tax paid on buying land and property. Naturally, there a few exceptions. For example, if you’re buying your first property, you won’t have to pay for it unless the property is worth more than £300,000. In this guide, we’ll walk through the different costs and scenarios you could face – just so you can factor it into budgeting for your new home.
"Stamp duty is one of those costs that can really take people by surprise. It’s not a trivial amount of money, and our own figures last year showed that 41% of potential buyers told us that stamp duty was a factor in their concern at the cost of moving.
But whilst it can be a large cost for some, first time buyers are mostly shielded from it."
Rachel Geddes
Strategic Lender Relationship Director
What is Stamp Duty?
What is Stamp Duty
Stamp duty land tax (SDLT), or Stamp Duty as you and I know it, is a tax you may have to pay when buying land or a home in England and Northern Ireland.
If you’re buying property in Scotland, you’ll have to pay Land and Building Transaction Tax (LBTT). If you’re buying property in Wales, you’ll have to pay Land Transaction Tax (LTT).
Basically, if you’re purchasing a new home or plot of land, you might have to pay a tax on it. Sure, it’s not ideal, but it’s something you don’t want to get caught out by when budgeting.
You’ll need to pay for stamp duty when you:
Buy a freehold property (a house or flat that you own outright)
Buy a new or existing leasehold (a house or flat you lease from a landlord)
Are transferred land or property in exchange for payment (e.g. you take on a mortgage from someone else).
Who pays Stamp Duty?
Do you pay stamp duty when you sell a house?
No, the buyer is always responsible for stamp duty. That's because it's basically a tax on buying property. So, if you buy a house, it's your responsibility to pay the tax.
Buying a second home
Stamp duty can get even more pricey once you start buying multiple properties. This is because the amount of stamp duty you need to pay is much higher if you own more than one home.
How to get a refund on stamp duty
There is a scenario where you can actually get a refund on your stamp duty.
This happens when the sale of your home collapses, but you choose to continue buying a new property anyway. As a result, you technically own two properties – even if you intended on selling your first property – and must now pay the higher rate of tax.
Later, when you sell the home, you can apply for a refund on the higher rate of stamp duty. However, you must sell your home within three years of buying your new home to be eligible for the refund.
Exceptions to the rule
There are some situations where you may pay less stamp duty, or none at all. The most common is first time buyer relief. If you’re buying your first home in England or Northern Ireland, you won’t pay stamp duty on the first £300,000, and you’ll pay 5% on the portion between £300,001 and £500,000. If the property costs more than £500,000, you’ll have to pay stamp duty as normal.
Stamp Duty Calculator
First time buyer
Your stamp duty as a first time buyer would be:
£0.00
Not a first time buyer
The stamp duty on your new property would be:
£0.00
Buying a second home:
Stamp duty on a second property would be:
£0.00
First home (first time buyer)
Main residence
Second Home
When is stamp duty payable?
In England and Northern Ireland, you’ll need to pay stamp duty within 14 days of the completion date (in other words, when you've bought your house). In Scotland and Wales, you have 30 days to do so.
Don't worry though – in most cases, this will be done by your conveyancer as part of the legal work. Should you wish to settle it yourself, you can file a return and pay your tax online.
How is stamp duty calculated?
How much you’ll pay for stamp duty will depend on where you live in the UK. Wales and Scotland having their own rates and thresholds, whilst England and Northern Ireland share the same structure.
In practice, it actually works a little bit like when you get paid. Everyone has a personal tax allowance, so you’re only taxed for income after that figure.
For example, if you're buying a home for £273,000 and aren't eligible for first-time buyer relief, you'll pay:
0% on the first £125,000
2% on the next £125,000
5% on the final £23,000
This works out at a total stamp duty bill of £3,650.
Stamp Duty Rates in 2026
First time buyer relief
Purchase Price | First Time Buyer Rate |
Up to £300,000 | 0% |
£300,001 to £500,000 | 5% |
Over £500,000 | No relief available. Standard rates apply. |
Stamp duty rates in England
Purchase Price Band | Standard Rate | Higher Rate * |
Up to £125,000 | 0% | 5% |
£125,001 to £250,000 | 2% | 7% |
£250,001 to £925,000 | 5% | 10% |
£925,001 to £1.5 million | 10% | 15% |
Over £1.5 million | 12% | 17% |
*The higher rate of tax is paid if you own more than one home.
First time buyer relief
First time buyers in Scotland benefit from stamp duty (or ‘Land and Building Transaction Tax’) relief up to £175k.
Standard stamp duty rates in Scotland
Purchase Price Band | Land and Buildings Transaction Tax (LBTT) Rate |
Up to £145,000 | 0% |
£145,001 to £250,000 | 2% |
£250,001 to £325,000 | 5% |
£325,001 to £750,000 | 10% |
Over £750,000 | 12% |
Stamp duty for additional properties in Scotland
Charge | LBTT Rate |
Additional Dwelling Supplement (ADS) | Flat 8% of the full purchase price |
Wales does not offer a separate first-time buyer relief scheme, though the overall threshold before having to pay is £225k.
Standard stamp duty rates
Purchase Price Band | Standard Rate |
Up to £225,000 | 0% |
£225,001 to £400,000 | 6% |
£400,001 to £750,000 | 7.5% |
£750,001 to £1.5 million | 10% |
Over £1.5 million | 12% |
Stamp duty for additional properties in Wales
Purchase Price Band | Higher Rate* |
Up to £180,000 | 5% |
£180,001 to £250,000 | 8.5% |
£250,001 to £400,000 | 10% |
£400,001 to £750,000 | 12.5% |
£750,001 to £1.5 million | 15% |
Over £1.5 million | 17% |
*The higher rate of tax is paid if you own more than one home.
Can Stamp Duty be added to a mortgage?
Yes, you can add stamp duty to your mortgage. However, this is dependent on the lender agreeing that you can afford to borrow more.
Mortgage implications
Before adding stamp duty to your mortgage, it’s worth checking that:
You still have the deposit to cover this increase in borrowing
The lender will actually allow you to borrow more
Doing this does mean that your monthly costs will go up, as you’re borrowing more money, so it’s worth talking to your mortgage adviser or broker.
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Something to bear in mind...
Frequently asked questions
No, stamp duty must be paid in full. In England and Northern Ireland, this must be paid within 14 days of buying your land or property. In Scotland and Wales, you must pay it within 30 days.
Not anymore. In 2018, the Government of the day passed new legislation designed to prevent customers from having to pay additional fees for using their credit card. As a result, personal credit cards can no longer be used for tax payments.
In this scenario, both of you must be first time buyers in order to be eligible for stamp duty relief. This ensures that a first time buyer can’t just put a co-owner on the application for the purpose of avoiding tax.
Yes, in some cases, stamp duty can be refunded.
For example, if you’re moving into a new home and there’s a delay in selling your current property, you may need to pay the higher rate of stamp duty. This is because you will legally own two properties.
Deliberately avoiding stamp duty when you are required to pay it is a criminal offence, though late payment is not a criminal offence. Regardless, the buyer is responsible for making sure that they do.
HMRC has the power to investigate stamp duty tax returns for up to 20 years, so it’s really important that you’ve paid the right amount. Speaking to a solicitor or conveyancer during your purchase will help with this.