Stamp Duty Land Tax: What It Is and What You’ll Pay

10 July, 2026 3 minutes reading time

When you are calculating the costs of moving home, one of the biggest upfront expenses to budget for is Stamp Duty Land Tax (SDLT).

Because the rules and tax bands changed significantly when temporary government relief measures ended, we often find buyers working with outdated figures. To help you plan your next move with confidence, here is a straightforward look at how residential property rates work, the current thresholds, and when they apply.

What is Stamp Duty?

Stamp Duty is a lump-sum tax paid to HMRC when you buy a property or land above a certain price in England and Northern Ireland. The tax is tiered, meaning you pay different percentages on different slices of the property’s price, much like how income tax works.

How Much Will I Pay?

The exact amount you owe depends entirely on the purchase price and your buying status. Here is how the rates look for first-time buyers, existing homeowners, and property investors.

1. Existing Homeowners (moving into a new main residence)

If you have owned a property before and are moving into a new main home, you will pay nothing on the first £125,000. After that, the standard rates apply:

• Up to £125,000: 0%
• £125,001 to £250,000: 2%
• £250,001 to £925,000: 5%
• £925,001 to £1.5 million: 10%
• Over £1.5 million: 12%

2. First-Time Buyers

First-time buyers benefit from a specific relief. You will pay no Stamp Duty on properties purchased for up to £300,000.

• Up to £300,000: 0%
• £300,001 to £500,000: 5% (only on the portion above £300k)

Case Study: One House, Three Different Tax Bills

To show you exactly how these rules apply in real life, let’s look at three different buyers all purchasing a property in Nottingham for £350,000. Because of their individual situations, their Stamp Duty bills look completely different.

Buyer A: The First-Time Buyer

Sarah is buying her very first home. Because the house is under the £500,000 relief limit, she qualifies for First-Time Buyer Relief.

• She pays 0% on the first £300,000.
• She pays 5% on the remaining £50,000.
• Total Stamp Duty: £2,500

Buyer B: The Next-Step Home Buyer

David and Chloe are selling their current flat to buy this house as their new main home. Because they are existing homeowners, standard rates apply.

• They pay 0% on the first £125,000.
• They pay 2% on the next £125,000 (the portion between £125k and £250k) = £2,500.
• They pay 5% on the final £100,000 (the portion between £250k and £350k) = £5,000.
• Total Stamp Duty: £7,500

Buyer C: The Buy-to-Let Investor

James is buying the house to rent out as an investment property. Because it’s an additional property, he is subject to the standard 5% surcharge across all bands.

• He pays 5% on the first £125,000 = £6,250.
• He pays 7% on the next £125,000 = £8,750.
• He pays 10% on the final £100,000 = £10,000.
• Total Stamp Duty: £25,000

When and How is Stamp Duty Paid?

You have 14 days from the date of completion (the day you get the keys) to file an SDLT return and pay the tax. The good news is that you don’t have to handle the paperwork yourself. Your legal team will calculate the exact tax owed, submit the return to HMRC, and transfer the funds safely on your behalf on completion day.

Our Advice

Navigating property taxes and the legalities of moving house might seem daunting, but it doesn’t have to be! Whether you’re a first-time buyer saving for your deposit or planning to sell and find a bigger home, it’s worth taking time early in the process to speak to a specialist residential conveyancing team. They’ll guide you confidently through each step, making the journey much easier and more reassuring.

If you’re considering moving house, don’t hesitate to contact us for a transparent, fixed-price conveyancing quote. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

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