Guide · Stamp duty

Stamp duty, LBTT and LTT explained

How stamp duty works across England, Northern Ireland, Scotland and Wales, with first-time buyer relief, second home rates and worked examples. Start by sDLT in England and Northern Ireland, LBTT in Scotland, LTT in Wales. The rules and thresholds differ.

By Uthman ChoudhuryPublished 20 September 2026Updated 20 September 2026

Skip the reading: use the Stamp Duty Calculator for your own numbers.

How do you work out your stamp duty bill?

Pick the right tax. SDLT in England and Northern Ireland, LBTT in Scotland, LTT in Wales. The rules and thresholds differ.
Decide which rates apply. Standard rates for a main home, first-time buyer rates if every buyer qualifies, higher rates if anyone will own two or more properties.
Split the price into bands. Only the part of the price inside each band is taxed at that band's rate.
Add any surcharge. In England and Scotland the additional property charge is a percentage of the whole price added on top. In Wales the higher rates replace the standard ones.
Pay within the deadline. 14 days of completion for SDLT, 30 days for LBTT and LTT. Your conveyancer usually files and pays.

What is stamp duty?

Stamp duty is the tax paid by the buyer when a property changes hands. England and Northern Ireland charge Stamp Duty Land Tax (SDLT), Scotland charges Land and Buildings Transaction Tax (LBTT) and Wales charges Land Transaction Tax (LTT). All three are progressive slice taxes with a nil-rate band, reliefs for some first-time buyers and higher charges for people buying additional properties.

SDLT standard residential rates, 2026/27
Portion of price	Rate
Up to £125,000	0%
£125,001 to £250,000	2%
£250,001 to £925,000	5%
£925,001 to £1,500,000	10%
Above £1,500,000	12%

LBTT standard residential rates, 2026/27
Portion of price	Rate
Up to £145,000	0%
£145,001 to £250,000	2%
£250,001 to £325,000	5%
£325,001 to £750,000	10%
Above £750,000	12%

LTT standard residential rates, 2026/27
Portion of price	Rate
Up to £225,000	0%
£225,001 to £400,000	6%
£400,001 to £750,000	7.5%
£750,001 to £1,500,000	10%
Above £1,500,000	12%

Worked example: a £425,000 home in each nation

Buyer	England / NI	Scotland	Wales
Home mover	£11,250	£15,850	£12,375
First-time buyer	£6,250	£15,250	£12,375
Additional property	£32,500	£49,850	£33,075

In England the mover pays 2% on the £125,000 between £125,000 and £250,000 and 5% on the £175,000 above that. The first-time buyer pays 5% only on the £125,000 above £300,000.

What do buyers get wrong?

Forgetting to budget cash for it. Lenders will not normally add stamp duty to the mortgage.
Missing the three-year refund window. If you pay the higher rate because your old home has not sold, you can reclaim it once it sells within three years.
Assuming a gifted deposit or inherited share does not count. Owning any share of a property, including inherited, can remove first-time buyer status.

Work out your own figure with the stamp duty calculator.

Frequently asked questions

Do first-time buyers pay stamp duty?

In England and Northern Ireland, not on the first £300,000 and 5% between £300,000 and £500,000; above £500,000 they pay standard rates. In Scotland the nil-rate band rises to £175,000. Wales has no first-time buyer relief.

Is stamp duty payable on the whole price?

No. It is a slice tax: each portion of the price is taxed at its own band rate. A £260,000 home in England pays 2% on £125,000 and 5% on £10,000, not 5% on everything.

What counts as an additional property?

Any residential purchase of £40,000 or more where you, your spouse or civil partner will own another dwelling anywhere in the world at the end of the day of completion, unless it replaces your main residence.