Stamp Duty Explained 2026: Rates and Examples

Stamp Duty Land Tax (SDLT) is a tax you pay when you buy property or land in England or Northern Ireland. On a £350,000 home, a home mover pays £7,500, a first-time buyer pays £2,500 and someone buying an additional property pays £25,000.

The rate depends on who you are and what else you own. It is charged in bands, like income tax, so you only pay each rate on the part of the price that falls inside that band. Your solicitor files the return and pays it for you, but the money has to come from your own funds.

Scotland and Wales have their own taxes. Scotland has Land and Buildings Transaction Tax and Wales has Land Transaction Tax, with different rates and rules, so this guide does not apply there. For the full moving process, see our home mover mortgage guide.

How much Stamp Duty will you pay?

It depends on the price and your situation. Home movers pay the standard rates. First-time buyers pay nothing on the first £300,000 if the price is £500,000 or less. Anyone who will own more than one home at the end of completion day usually pays an extra 5% on every band. Check your figure with our stamp duty calculator.

What are the Stamp Duty rates in 2026?

These are the standard residential rates in England and Northern Ireland, taken from GOV.UK’s residential property rates.

Part of the price	Standard rate	First-time buyer rate	Additional property rate
Up to £125,000	0%	0%	5%
£125,001 to £250,000	2%	0%	7%
£250,001 to £300,000	5%	0%	10%
£300,001 to £500,000	5%	5%	10%
£500,001 to £925,000	5%	No relief, standard rates	10%
£925,001 to £1.5 million	10%	No relief, standard rates	15%
Above £1.5 million	12%	No relief, standard rates	17%

Non-UK residents pay a further 2% surcharge on top of these rates.

What does Stamp Duty look like at £350,000?

Here is the same £350,000 purchase worked through for three different buyers.

Buyer	How it is worked out	Stamp Duty
Home mover	0% on £125,000, 2% on £125,000 (£2,500), 5% on £100,000 (£5,000)	£7,500
First-time buyer	0% on £300,000, 5% on £50,000 (£2,500)	£2,500
Additional property	5% on £125,000 (£6,250), 7% on £125,000 (£8,750), 10% on £100,000 (£10,000)	£25,000

The difference between the home mover and the additional property buyer is £17,500. That is the 5% surcharge across the whole £350,000.

Who counts as a first-time buyer?

You must never have owned a home, or a share of one, anywhere in the world. If you are buying jointly, everyone on the purchase must be a first-time buyer. You must also be buying to live in the property as your main home.

The relief stops completely above £500,000. At £500,000 a first-time buyer pays £10,000. At £510,000 they pay the standard rate of £15,500. If you are near that line, it is worth knowing before you negotiate. Our first-time buyer mortgage guide covers the rest of the costs.

When does the 5% surcharge apply?

The higher rates usually apply if, at the end of the day you complete, you own more than one residential property and you have not replaced your main home. Common examples:

Buying a buy-to-let or second home while keeping your current home
Buying your next home before your current one has sold
Keeping your old home and letting it out, known as let to buy
Buying residential property through a limited company

Property worth less than £40,000 is generally ignored when counting what you own. Divorce, inherited shares and properties abroad can all change the answer, so tell your solicitor everything you own.

Can you get the surcharge back?

Yes, if you are replacing your main home. If you buy your new home before selling the old one, you pay the higher rates at completion. If you then sell your previous main home within three years, you can claim back the extra part.

You must claim within 12 months of the sale of your old home, or 12 months of the filing date of the return for the new home, whichever is later. The rules are on GOV.UK’s guide to buying an additional residential property. The SDLT return itself is due within 14 days of completion, and your solicitor will deal with that.

Which situations do lenders see most?

These are illustrative situations, not Option Finance client outcomes.

Moving up the ladder

You sell and buy on the same day. You pay standard rates on the new home and no surcharge.

Budget for the standard bands

Buying before you sell

You complete on the new home while the old one is still yours. You pay the surcharge now and claim it back after the sale.

Have the extra cash ready for months

First home near £500,000

A small rise in price can take you over the limit and remove the relief altogether.

Check the figure before you offer

Keeping your old home to let

You will own two homes, so the higher rates apply to the new purchase and there is no refund unless you later sell.

Factor the surcharge into the deposit

Illustration only

A couple have £60,000 saved and want to buy a £350,000 home after selling their flat. Stamp Duty at standard rates is £7,500. After that and, say, £3,000 for legal fees and surveys, they have £49,500 left for the deposit, which is about 14% of the price. If they bought before selling and paid the surcharge, the Stamp Duty would be £25,000 and the deposit would drop to £32,000, about 9%, until the refund came through.

Can you add Stamp Duty to your mortgage?

Not directly. Lenders lend against the property price, and Stamp Duty is paid at completion from your own money. Some buyers borrow more by putting down a smaller deposit, but that pushes up the loan to value and can mean a higher rate.

Remortgaging does not create a Stamp Duty bill because you are not buying anything. A transfer of equity can be different if money or debt changes hands, so check with your solicitor.

What mistakes should you avoid?

Using the deposit to pay the tax. Take Stamp Duty out first, then see what is left.
Forgetting about property you part own. A share in an inherited house or a home abroad can trigger the higher rates.
Missing the refund deadline. Diary the three year window and the 12 month claim window.
Assuming a joint first-time buyer purchase qualifies. If one buyer has owned before, nobody gets the relief.

Frequently asked questions

Who pays Stamp Duty, the buyer or the seller?

The buyer. A seller may agree a lower price to help, but the tax is the buyer’s responsibility.

When do I have to pay Stamp Duty?

The return and payment are due within 14 days of completion. Your solicitor usually handles both using funds you provide.

Do first-time buyers pay Stamp Duty in 2026?

Not on the first £300,000 if the price is £500,000 or less. Above £500,000 the relief is lost and standard rates apply to the whole price.

How much is Stamp Duty on a second home?

The standard rates plus 5% on every band. On £350,000 that comes to £25,000.

Can I reclaim the surcharge if I buy before I sell?

Yes, if the old property was your main home and you sell it within three years. You then have 12 months from the sale, or from the filing date if later, to claim.

Do I pay Stamp Duty when I remortgage?

No. Stamp Duty applies when you buy property, not when you change lender on a home you already own.

Does Stamp Duty apply in Scotland and Wales?

No. Scotland has Land and Buildings Transaction Tax and Wales has Land Transaction Tax, with their own rates.

Speak to Option Finance about moving home

Tell us the price, what you own now and how you plan to fund the purchase. We will tell you straight what the Stamp Duty is likely to be, how it affects your deposit and which lenders fit.

Book a free initial consultation using the enquiry form below. See our moving home mortgage advice, our guide on whether you can have more than one mortgage and our guide to remortgaging to buy a second home.

Stamp Duty Explained 2026: Rates, Reliefs and Worked Examples