Stamp duty is paid at legal completion, the day you get the keys, via your solicitor, who files the return with HMRC within 14 days. This guide covers exactly when stamp duty is paid, the current 2026 rates, first time buyer relief, second home surcharge, and worked examples.
Stamp duty is paid at legal completion, the day you receive the keys. Your solicitor handles it automatically, deducting the amount from your completion funds and filing the SDLT return with HMRC within 14 days. First time buyers pay no stamp duty on properties up to £300,000. On properties between £300,001 and £500,000, first time buyers pay 5% on the portion above £300,000 only.
Stamp duty land tax (SDLT) is paid at legal completion, the final stage of buying a property when ownership legally transfers and you collect the keys. You do not pay stamp duty when you make an offer, at exchange of contracts, or at any earlier point in the purchase process.
Your solicitor handles the entire stamp duty payment process on your behalf. They calculate the SDLT amount due, include it in the completion statement, deduct it from the funds you transfer to them before completion, and file the SDLT1 return with HMRC within 14 days of the completion date. You receive an SDLT5 certificate confirming payment, which the Land Registry requires to register the new ownership in your name. In practice, you rarely deal with HMRC directly, it is all managed through the conveyancing process.
Stamp duty cannot be added to a residential mortgage in the UK. It must be funded from your own cash savings alongside your deposit. You need to have the full SDLT amount available before completion. For many first-time buyers stamp duty is either zero or a small amount, but for those buying above £300,000 it is a meaningful additional cost.
The 14-day filing deadline is strict. Late submission triggers an automatic £100 penalty immediately after the deadline, rising to £200 after three months, plus interest on any unpaid tax. This is another reason why instructing an experienced conveyancing solicitor matters, missed SDLT deadlines after completion are the buyer's legal responsibility.
These are the standard SDLT rates for main residence purchases in England and Northern Ireland, effective from 1 April 2025 and unchanged in 2026. Stamp duty is calculated on slices, you pay each rate only on the portion of the price that falls within that band, not on the whole amount.
| Purchase price band | Standard rate | You pay |
|---|---|---|
| Up to £125,000 | 0% | £0 |
| £125,001 to £250,000 | 2% | Up to £2,500 |
| £250,001 to £925,000 | 5% | Up to £33,750 |
| £925,001 to £1.5m | 10% | Up to £57,500 |
| Over £1.5m | 12% | 12% on the excess |
Stamp duty is calculated on slices, not the whole price. A buyer paying £300,000 does not pay 5% on the entire £300,000, they pay 0% on the first £125,000, 2% on the next £125,000, and 5% on the final £50,000. Total: £5,000, not £15,000.
Rates apply to England and Northern Ireland only. Scotland uses Land and Buildings Transaction Tax (LBTT). Wales uses Land Transaction Tax (LTT). Both have different rates and thresholds. Rates correct as of July 2026.
First time buyers in England and Northern Ireland benefit from stamp duty relief, which reduces or eliminates the stamp duty payable compared to standard rates. The current relief thresholds have applied since 1 April 2025.
| Purchase price | First time buyer rate | SDLT payable |
|---|---|---|
| Up to £300,000 | 0% (nil rate) | £0, no stamp duty |
| £300,001 to £500,000 | 5% on the portion above £300,000 | Up to £10,000 |
| Over £500,000 | Relief does not apply | Standard rates on the full price |
To qualify for first time buyer stamp duty relief, neither buyer can have previously owned residential property anywhere in the world, not just in the UK. If you are buying jointly, both buyers must be first time buyers. If one buyer has previously owned a property, neither buyer qualifies for the relief and standard rates apply to the full purchase price. The property must also be intended as your main residence, you cannot claim first time buyer relief on a buy-to-let purchase.
Buyers of an additional residential property, including second homes, holiday homes and buy-to-let properties, pay a 5% surcharge on top of the standard SDLT rates at every band.
| Purchase price band | Standard rate | Additional property rate |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5m | 10% | 15% |
| Over £1.5m | 12% | 17% |
The additional dwelling surcharge was increased from 3% to 5% in the Autumn Budget 2024, effective from 31 October 2024. Anyone who purchased an additional property after this date pays the higher 5% rate. On a £200,000 buy-to-let property, the surcharge alone adds £10,000 to the purchase cost compared to a standard main residence purchase. This must be funded from cash savings, it cannot be added to the mortgage.
The surcharge applies to the entire purchase price from the first pound. On a £200,000 buy-to-let purchase: 5% on £125,000 (£6,250) plus 7% on £75,000 (£5,250) equals £11,500 total. A main residence buyer paying the same price would pay: 0% on £125,000 plus 2% on £75,000, £1,500. The surcharge adds £10,000.
These examples show how stamp duty is calculated on common purchase prices. All figures are for England.
| Purchase price | Buyer type | SDLT calculation | Total SDLT |
|---|---|---|---|
| £250,000 | First time buyer | 0% on £250,000 | £0 |
| £350,000 | First time buyer | 0% on £300,000 + 5% on £50,000 | £2,500 |
| £350,000 | Standard buyer | 0% on £125k + 2% on £125k + 5% on £100k | £7,500 |
| £450,000 | First time buyer | 0% on £300,000 + 5% on £150,000 | £7,500 |
| £450,000 | Standard buyer | 0% on £125k + 2% on £125k + 5% on £200k | £12,500 |
| £550,000 | First time buyer | Relief does not apply, standard rates | £17,500 |
| £200,000 | Buy-to-let / second home | 5% on £125k + 7% on £75k | £11,500 |
| £300,000 | Buy-to-let / second home | 5% on £125k + 7% on £125k + 10% on £50k | £22,500 |
These examples are for illustration only. Figures are based on SDLT rates for England effective from 1 April 2025. Individual circumstances including mixed-use properties, shared ownership, and multiple dwellings may result in different calculations. Always confirm your SDLT liability with your solicitor before completion.
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No fee for the initial consultation. A non-refundable £299 broker fee is payable on receipt of a formal mortgage offer (only if you choose to proceed). We may also receive commission from lenders. Your home may be repossessed if you do not keep up repayments on your mortgage.
Get Mortgage AdviceTax information: Stamp duty rates and thresholds shown are for England and Northern Ireland, based on SDLT legislation effective from 1 April 2025 and current as of July 2026. Rates are subject to change. This guide is for general information only and does not constitute tax or legal advice. Always confirm your SDLT liability with your solicitor before exchange of contracts.
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