Stamp Duty Calculator

How stamp duty is calculated

Stamp duty in the UK is a tiered tax applied to the purchase price of property. Each jurisdiction applies its own rates and thresholds: Stamp Duty Land Tax (SDLT) in England and Northern Ireland, Land and Buildings Transaction Tax (LBTT) in Scotland, and Land Transaction Tax (LTT) in Wales. In all three systems the tax is calculated using a banded structure, not a flat rate applied to the full purchase price.

The banded rate system

The banded structure means each rate applies only to the portion of the purchase price within that band, not to the total price. On a £350,000 property in England, you pay 0% on the first £250,000 and 5% on the remaining £100,000, giving a total of £5,000. You do not pay 5% on the full £350,000. This is the most commonly misunderstood feature of stamp duty. The calculator applies each band's rate to the correct slice of the purchase price and sums the result.

First-time buyer relief

In England, first-time buyers pay no SDLT on the first £425,000 of the purchase price, and 5% on the portion between £425,001 and £625,000. This relief phases out entirely above £625,000 (standard rates apply above this threshold, with no first-time buyer relief). Scotland operates a first-time buyer relief on the first £175,000 of the LBTT liability. Wales does not currently have a first-time buyer relief for LTT.

Additional dwelling surcharge

A surcharge applies to purchases of additional residential properties, including buy-to-let properties and second homes. In England and Northern Ireland the surcharge is 3 percentage points above the standard SDLT rates. In Scotland it is 6 percentage points above standard LBTT rates. In Wales it is 4 percentage points above standard LTT rates. The surcharge does not apply if the property being purchased replaces your main residence, provided the previous main residence is sold on the same day as or before the new purchase.

Worked example

You are purchasing a £350,000 property in England as a standard mover (not a first-time buyer, not purchasing an additional property).

SDLT bands in England (from April 2025):

• £0 to £250,000 at 0% = £0
• £250,001 to £925,000 at 5% applies to the slice from £250,001 to £350,000

Calculation: (£350,000 - £250,000) x 5% = £100,000 x 5% = £5,000.

Total SDLT: £5,000. This represents 1.4% of the purchase price. By comparison, a first-time buyer purchasing the same property would pay £0 SDLT, as the entire purchase price falls within the first-time buyer relief threshold of £425,000.

Frequently asked questions

What counts as a first-time buyer for stamp duty purposes?

In England, you are a first-time buyer if you have never previously owned a freehold or leasehold residential property anywhere in the world, either alone or jointly. Both purchasers must meet this condition on a joint purchase to qualify for first-time buyer relief. HMRC's published guidance provides the authoritative definition. Prior ownership of a commercial property does not disqualify you.

Does the 3% surcharge apply if I am replacing my main residence?

In England, the 3% additional dwelling surcharge does not apply if you are replacing your main residence, provided the previous main residence is sold on the same day as or before the new purchase. If you buy before selling, the surcharge is due at completion; however you can claim a refund from HMRC if you sell the previous home within three years of the new purchase.

Are there any other stamp duty exemptions?

Several transactions are exempt, including transfers between spouses or civil partners, property inherited under a will, and purchases below the nil-rate threshold. Charities purchasing property for charitable purposes may qualify for relief. Zero-carbon home relief has been abolished. Always verify your specific circumstances with a solicitor or tax adviser, as reliefs and exemptions change.

How accurate are the stamp duty figures?

The calculator applies the rates and thresholds legislated for the 2025-26 tax year. It does not account for mixed-use properties, linked transactions, sub-sale relief, or reliefs beyond standard first-time buyer and additional dwelling rules. For complex transactions, obtain advice from a solicitor or tax specialist before relying on the figures.

What are the current SDLT rates in England?

From April 2025 the standard SDLT rates in England are: 0% on the first £250,000; 5% on £250,001 to £925,000; 10% on £925,001 to £1.5 million; 12% above £1.5 million. First-time buyers pay 0% up to £425,000 and 5% on £425,001 to £625,000, above which standard rates apply. The 3% additional dwelling surcharge is added to each band for second homes and buy-to-let purchases.

How does Scotland's LBTT differ from SDLT?

Scotland's Land and Buildings Transaction Tax applies its own band structure. Standard rates from April 2025 are: 0% on the first £145,000; 2% on £145,001 to £250,000; 5% on £250,001 to £325,000; 10% on £325,001 to £750,000; 12% above £750,000. First-time buyer relief raises the 0% threshold to £175,000. The Additional Dwelling Supplement is 6% above each standard band.

How does Wales's LTT differ from SDLT?

Land Transaction Tax in Wales uses a different band structure with a starting threshold of £225,000 for main residential purchases. Rates range from 0% to 12% across the bands. Wales does not have a first-time buyer relief equivalent. The Higher Rates surcharge for additional dwellings is 4 percentage points above the standard rates. The LTT return and payment must be submitted within 30 days of the effective date.

What happens if I pay too much stamp duty?

If you have overpaid, you can claim a refund from HMRC (for SDLT), Revenue Scotland (for LBTT), or the Welsh Revenue Authority (for LTT). Common reasons for overpayment include failing to apply a relief you were entitled to, or paying the additional dwelling surcharge when you were exempt. The time limit for an overpayment claim is generally four years from the effective date of the transaction.

Do I pay stamp duty on auction purchases?

Yes. The same SDLT, LBTT, or LTT rules apply regardless of how a property is purchased. At auction, the "effective date" for SDLT purposes is typically the date the hammer falls (when contracts are exchanged), not the date of completion. This can create a tight deadline for payment if completion is not immediate. Buyers at auction should budget for stamp duty and ensure funds are available from exchange.

Is stamp duty the same on leasehold and freehold properties?

For standard residential purchases, SDLT is calculated on the same basis for leasehold and freehold properties. However, new leasehold properties with a high net present value of rent may attract additional SDLT on the lease element as well as on the premium paid. This primarily affects commercial leases and some long residential leases on new-builds. Your solicitor will advise if an additional lease duty calculation applies.

Source: HMRC Stamp Duty Land Tax guidance (gov.uk/stamp-duty-land-tax); Revenue Scotland LBTT guidance; Welsh Revenue Authority LTT guidance.

Related calculators