Stamp Duty Explained: Rates, SDLT Calculator and Second Home Rules
Stamp duty is one of the biggest costs of buying a home, yet many buyers only work out how much they owe late in the process. At Ally Randall Solicitors, our conveyancing team helps buyers across Northwood Hills and the surrounding area understand their costs before they commit. This guide explains stamp duty in plain English, including the current Stamp Duty Land Tax (SDLT) rates, first-time buyer relief, stamp duty on a second home, how to use the SDLT calculator and when you pay.
Quick answer: SDLT is a tax paid when you buy residential property in England or Northern Ireland above £125,000. It is charged on slices of the price at 0%, 2%, 5%, 10% and 12%. Qualifying first-time buyers pay no SDLT up to £300,000 on homes costing up to £500,000, and you usually pay an extra 5% if buying leaves you owning more than one residential property. All rates below are as published on GOV.UK in October 2026.
What Is Stamp Duty Land Tax?
Stamp Duty Land Tax, usually called stamp duty or SDLT, is a tax on the purchase of land and property. You usually pay it on increasing portions of the property price, not on the whole price. The amount you pay depends on when you buy, how much you pay and whether you qualify for a relief or exemption.
SDLT applies in England and Northern Ireland. Scotland and Wales have their own property purchase taxes.
Stamp Duty Rates for a Single Property
You pay these rates if, after buying, the property is the only residential property you own.
| Portion of the price | SDLT rate |
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
Worked example from GOV.UK: on a house costing £295,000, you pay 0% on the first £125,000, 2% on the next £125,000 (£2,500) and 5% on the final £45,000 (£2,250). The total SDLT is £4,750.
Stamp Duty for First-Time Buyers
If the property is your first home, you can claim a relief. You are eligible if you and anyone else you are buying with are first-time buyers. You will pay:
- No SDLT up to £300,000
- 5% on the portion from £300,001 to £500,000
If the price is over £500,000, you cannot claim the relief and you follow the standard rules for people who have bought a home before. For example, a first-time buyer buying at £500,000 pays £10,000 (0% on the first £300,000 and 5% on the remaining £200,000). If you are buying your first home, our residential conveyancing solicitors can explain how the relief applies to your purchase.
Stamp Duty on a Second Home or Additional Property
You usually pay 5% on top of the standard SDLT rates if buying a new residential property means you will own more than one. This higher rate applies to the whole price, not just the slice above a threshold.
Replacing Your Main Residence
You will not pay the extra 5% if both of these apply:
- The property you are buying replaces your main residence
- Your previous main residence was sold within 36 months of completing your new purchase
If you have not sold your main residence on the day you complete your new purchase, you will have to pay the higher rates because you own two properties. You may then be able to claim a refund of the higher rates once you sell, if you qualify.
Stamp Duty If You Are Not a UK Resident
You are treated as not a UK resident for SDLT if you were not present in the UK for at least 183 days during the 12 months before your purchase. You will usually pay a 2% surcharge on residential property in England or Northern Ireland, on top of any other rates that apply, such as the higher rate for additional properties. You may not have to pay it on certain properties, transactions or types of buyer.
Stamp Duty on Leasehold Properties
When you buy a new residential leasehold property, you pay SDLT on the lease premium, which is the price paid for the lease, using the rates above. If the total rent over the life of the lease, known as the net present value, is more than £125,000, you will also pay 1% on the portion over £125,000. This does not apply to existing leases that are being assigned. For help with leasehold purchases, see our residential conveyancing solicitors.
How Much Stamp Duty Will You Pay? Examples
These examples use the rates above. They are calculated from the GOV.UK bands and show SDLT on the purchase price only.
| Purchase price | Only home | First-time buyer | Additional property |
| £250,000 | £2,500 | £0 | £15,000 |
| £300,000 | £5,000 | £0 | £20,000 |
| £400,000 | £10,000 | £5,000 | £30,000 |
| £500,000 | £15,000 | £10,000 | £40,000 |
| £750,000 | £27,500 | £27,500 (no relief over £500,000) | £65,000 |
| £1,000,000 | £43,750 | £43,750 (no relief over £500,000) | £93,750 |
Special Rules to Be Aware Of
Different SDLT rules and calculations apply to:
- Companies and other corporate bodies
- People buying six or more residential properties in one transaction
- Shared ownership properties
- Linked purchases between the same buyer and seller
- Companies and trusts buying residential property
If any of these apply to you, tell your solicitor before you exchange contracts. Different rates also apply to non-residential and mixed-use property, so ask our commercial conveyancing team if you are buying business premises.
How to Use the SDLT Calculator
HMRC provides an official SDLT calculator on GOV.UK. To use it accurately, have these details ready:
- The purchase price and the date of completion
- Whether the property is freehold or leasehold, and the lease premium and rent if it is leasehold
- Whether it is your first home or an additional property
- Whether you are replacing your main residence
- Whether you are a UK resident for SDLT purposes
Check the result with your solicitor, because the correct rate depends on your full circumstances.
When and How Do You Pay Stamp Duty?
If you have a solicitor, they will usually file your SDLT return and pay the tax on your behalf on the day of completion, then add the tax to their fees. The return must reach HMRC within 14 days of completion. Ask your solicitor to confirm your SDLT figure early so you can have the money ready before exchange.
Stamp Duty and Your Total Moving Costs
Stamp duty sits alongside your legal fees, property searches, HM Land Registry fee and survey. Our published legal fees start from £1,305 plus VAT for a purchase up to £499,999, and may vary depending on the property value, transaction type, title complexity, lender requirements, leasehold documents and any additional legal work required. For a figure based on your own purchase, request a conveyancing quote.
You can meet the people who would handle your matter on our team page, learn more about Ally Randall Solicitors or browse our legal services. We act for clients across Northwood Hills, Northwood, Pinner, Ruislip, Eastcote, Harrow and Watford.
This article is general information, not legal advice or tax advice. SDLT rates and rules are as published on GOV.UK in October 2026 and can change, so check the HMRC calculator before you rely on any figure.
Get Advice Before You Buy
Call us on 020 8152 8737 or contact Ally Randall Solicitors to discuss your purchase and the costs involved.
Frequently Asked Questions
What is stamp duty?
Stamp Duty Land Tax, usually called stamp duty or SDLT, is a tax paid when you buy residential property in England or Northern Ireland above £125,000. It is charged on slices of the purchase price at rising rates.
How much stamp duty will I pay on £300,000?
On £300,000 a buyer with only one home pays £5,000. A qualifying first-time buyer pays £0. If the property is an additional residential property, the total is £20,000 because of the extra 5% on the whole price.
How much is stamp duty on a second home?
You usually pay 5% on top of the standard SDLT rates if buying a new residential property means you will own more than one. You will not pay the extra 5% if the new property replaces your main residence and your previous main residence was sold within 36 months of completing your new purchase.
Do first-time buyers pay stamp duty?
Qualifying first-time buyers pay no SDLT up to £300,000 and 5% on the portion from £300,001 to £500,000. If the price is over £500,000, first-time buyer relief cannot be claimed.
When do I pay stamp duty?
If you have a solicitor, they will usually file your SDLT return and pay the tax on your behalf on the day of completion and add it to their fees. The return must reach HMRC within 14 days of completion.
Is there an SDLT calculator?
Yes. HMRC provides an official SDLT calculator on GOV.UK. You will need the price, the completion date, whether the property is freehold or leasehold, whether it is your first home or an additional property and your UK residency status.