What Stamp Duty actually is
"Stamp Duty" is the shorthand most buyers use for the property purchase tax applied when a residential property changes hands. The formal name depends on where the property is located: 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.
Although the names differ, the core idea is the same. The tax is charged on the purchase price using a tiered band structure, and it is normally handled by the buyer’s solicitor or conveyancer at completion. The key question is not whether tax exists, but which nation’s rules and which buyer category apply to the transaction.
How the band system works
Stamp Duty is progressive. That means the whole purchase price is not taxed at one rate. Instead, each slice of the price falls into a separate band and is taxed only at that band’s rate. This is why a small increase in the purchase price does not create a sudden jump in the total tax bill.
The calculation is straightforward once the correct bands are known: split the purchase price into the relevant bands, apply the rate to each slice, and add the results together. A £350,000 England purchase, for example, does not pay 5% on the full £350,000 — only the banded slices above the nil-rate threshold are taxed.
England and Northern Ireland: SDLT 2026/27
For England and Northern Ireland, the SDLT nil-rate threshold sits at £125,000 for 2026/27. The main residential bands are 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% above that. First-time buyers get a more generous structure: 0% up to £300,000 and 5% on the portion from £300,001 to £500,000, with no relief above £500,000.
A practical example helps. On a £350,000 purchase by a standard buyer in England or Northern Ireland, the first £125,000 is taxed at 0%, the next £125,000 at 2% and the final £100,000 at 5%. That produces £7,500 of SDLT in total. The important point is that crossing into a higher band only affects the portion above the threshold, not the entire purchase price.
Scotland: LBTT and the Additional Dwelling Supplement
Scotland uses Land and Buildings Transaction Tax (LBTT) instead of SDLT. The residential bands are 0% up to £145,000, 2% from £145,001 to £250,000, 5% from £250,001 to £325,000, 10% from £325,001 to £750,000 and 12% above £750,000. First-time buyers get a raised nil-rate threshold of £175,000.
If the property is an additional residential dwelling, the Additional Dwelling Supplement (ADS) also applies. Revenue Scotland states that ADS is a flat 8% charge on the consideration for the relevant dwelling, paid on top of the standard LBTT calculation. That makes Scotland’s second-home result very different from a normal main-residence purchase, so the correct buyer type matters as much as the property price.
Wales: LTT and higher residential rates
Wales uses Land Transaction Tax (LTT). For main residential transactions the rates currently run from 0% up to £225,000, 6% from £225,001 to £400,000, 7.5% from £400,001 to £750,000, 10% from £750,001 to £1.5 million and 12% above that. Unlike England, Wales does not operate a separate first-time buyer relief scheme; the higher nil-rate threshold already means many first-time buyers pay no LTT at all.
For additional residential properties, Wales uses a separate higher-rate structure rather than a single flat add-on. The higher residential rates currently start at 5% and rise through the bands to 17% at the top end. Because the whole table changes rather than one surcharge being added, Welsh second-home costs are not directly comparable with England or Scotland without running the actual numbers.
Don't forget the rest of the moving budget
Stamp Duty is usually the largest single one-off property cost, but it is rarely the only one. Conveyancing, surveys, removals and deposits can all move the final number by a material amount, and they should be planned alongside the tax bill rather than after it.
If the Stamp Duty amount is just one part of a bigger affordability question, it is worth checking the wider moving budget and mortgage affordability tools as well. That is especially true when a surcharge or first-time buyer threshold changes the cash you need upfront.
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FAQ
Frequently asked questions
Short answers first. Open the question if you want the detail behind the result.
Is Stamp Duty paid on the whole purchase price at one rate?
No. It is calculated in bands, and each band rate applies only to the slice of the price that falls within that band.
Do first-time buyers always pay less Stamp Duty?
In England and Northern Ireland, first-time buyers pay nothing up to £300,000 and 5% from £300,001 to £500,000. In Scotland, first-time buyers get a raised nil-rate threshold. Wales has no separate first-time buyer relief scheme.
How much extra do I pay for a second home?
England and Northern Ireland apply a 5% additional property surcharge, Scotland applies an 8% Additional Dwelling Supplement, and Wales uses a separate higher-rate band structure.
Who actually pays Stamp Duty?
The buyer pays it, usually through their solicitor or conveyancer during completion.
Are the rates the same across all of the UK?
No. England and Northern Ireland use SDLT, Scotland uses LBTT and Wales uses LTT, with different thresholds and rates.
Sources
External links open the official source used to review this guide.