UK finance jargon - in plain English
A tax paid when you buy property in England and Northern Ireland above certain thresholds.
Stamp Duty Land Tax (SDLT) is a tax on property purchases in England and Northern Ireland. Scotland and Wales have their own equivalent taxes. Like income tax, it works in bands: you pay each rate only on the portion of the price that falls within that band. For 2026, standard rates are 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, and higher rates above that. First-time buyers pay 0% up to £300,000 and 5% from £300,001 to £500,000. Above £500,000, first-time buyer relief does not apply and standard rates are charged on the full purchase price. Buying an additional property adds a 5% surcharge on every band.
You are a first-time buyer purchasing a home for £350,000. You pay nothing on the first £300,000 and 5% on the remaining £50,000, so your stamp duty bill is £2,500. A second-home buyer buying the same property would pay significantly more due to the surcharge.
Stamp duty rates changed in April 2025 and are current as of 2026. Rates in Scotland (LBTT) and Wales (LTT) are different. Always verify the current thresholds at gov.uk before buying.
Last updated: June 2026. Sources: HMRC / GOV.UK / Student Finance England / FCA where relevant.
People forget to budget for stamp duty when saving for a house deposit. On a £300,000 purchase it can add thousands to the upfront cost on top of solicitor fees, surveys, and moving costs.
This is an estimate based on England and Northern Ireland rates effective from April 2025. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT) — rates and thresholds differ. Always verify your liability at gov.uk/stamp-duty-land-tax or with a solicitor before completing a purchase.
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