Stamp Duty: Who you pay, when it’s due, and how to pay it.
Stamp duty Land Tax (SDLT) is a tax you pay when you buy a residential property (or land) over a certain price in England and Northern Ireland. Stamp Duty is paid to HMRC, not the seller. In most cases your conveyancer works out how much is due, files the SDLT return and pays HMRC on your behalf on completion day, using funds you send them beforehand. Payment is due within 14 days of completion.
If you’re buying a property in England or Northern Ireland, you may have to pay Stamp Duty on the purchase. But what is it, how is it calculated, and what else do you need to know? Below we answer the most common questions from a conveyancer’s perspective.
Please note: different taxes apply in Wales (Land Transaction Tax) and Scotland (Land and Buildings Transaction Tax) – see the bottom of this guide. This article focuses on Stamp Duty and is general information, not legal advice.
Who is stamp duty paid to?
Stamp Duty is paid to HMRC – it’s a government tax, not a payment to the seller or the estate agent. You don’t normally pay HMRC directly: your conveyancer calculates the amount, submits your SDLT return and pays HMRC electronically as part of completing your purchase. You provide the money to your conveyancer along with your deposit and fees before completion.
What is stamp duty?
Stamp Duty Land Tax (SDLT), usually shortened to Stamp Duty, is a tax you pay when you buy a residential property (or land) over a certain price in England and Northern Ireland. The amount depends on the price, whether you’re a first-time buyer, and whether you already own another property.
What is the threshold to pay stamp duty?
For most buyers, Stamp Duty is payable on residential property costing £125,000 or more (in force since 1 April 2025). First-time buyers have a higher threshold, and higher rates apply if you’re buying an additional property. Even where no tax is due, a return usually still has to be filed.
How much is stamp duty?
Stamp Duty is worked out in bands – you pay the rate shown only on the portion of the price that falls within each band, not on the whole price. For someone buying their main home who is not a first-time buyer, the current rates are:
| Portion of the purchase 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% |
Worked example – a £400,000 home: you pay 0% on the first £125,000, 2% on the next £125,000 (£2,500) and 5% on the remaining £150,000 (£7,500) — £10,000 in total.
Quick reference (main home, not a first-time buyer):
| Purchase Price | Stamp Duty |
| £150,000 | £500 |
| £250,000 | £2,500 |
| £300,000 | £5,000 |
| £400,000 | £10,000 |
| £500,000 | £15,000 |
| £750,000 | £27,500 |
Do first time buyers pay stamp duty?
Many first-time buyers pay a reduced amount, or nothing at all, thanks to first-time buyer relief: 0% on the first £300,000 of a home costing up to £500,000, then 5% up to £500,000 (no relief above that). For full details, eligibility and worked examples, see our guide: Do first-time buyers pay Stamp Duty?
How much is stamp duty on second homes?
If you already own a main residence and are buying a second property (such as a holiday home or buy-to-let), you pay a 5% surcharge on top of the standard rates in every band. This surcharge increased from 3% to 5% on 31 October 2024. For second properties, the thresholds look like this:
| Portion of the purchase price | Rate |
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1,500,000 | 15% |
| Above £1,500,000 | 17% |
Worked example – a £250,000 second home: 5% on the first £125,000 (£6,250) plus 7% on the next £125,000 (£8,750) = £15,000 in total.
Stamp Duty isn’t payable if you’re buying a caravan, houseboat or mobile home. If you sell your previous main home within three years, you may be able to reclaim the surcharge (see below). Your conveyancer can advise on your specific situation.
Do non-UK residents pay more stamp duty?
Yes. If you’re not a UK resident, a further 2% surcharge applies on top of the rates above, and regardless of which rate band it falls under. You’re generally treated as non-resident if you have spent less than six months of the twelve months before you purchase the property living in the UK. Your conveyancer can confirm your residence status for SDLT purposes.
Is stamp duty paid on non-residential property?
Yes, stamp duty is payable on non-residential land and properties, as well as mixed-use developments, at different rates. For freehold purchases, this looks like:
| Portion of the purchase price | Rate |
| Up to £150,000 | 0% |
| £150,001 to £250,000 | 2% |
| Above £250,000 | 5% |
For new non-residential or mixed-use leases, Stamp Duty is charged both on the lease premium (using the rates above) and on the value of the rent over the life of the lease (the net present value, or NPV):
| Net present value of rent | Rate |
| Up to £150,000 | 0% |
| £150,001 to £5,000,000 | 1% |
| Above £5,000,000 | 2% |
Your conveyancer can calculate the total payable on a non-residential or mixed-use transaction.
Do I need to pay stamp duty when transferring ownership (inheritance, gifting or divorce)?
It depends on the circumstances:
- If you inherit a property under a will, Stamp Duty is generally not payable.
- If you’re gifted a property with no mortgage on it, you generally won’t pay Stamp Duty.
- However, if there is an outstanding mortgage on the property you are gifted, you will typically have to pay stamp duty on the amount of the mortgage that is over the stamp duty threshold.
- If a property is transferred as part of a divorce or the dissolution of a civil partnership, Stamp Duty is generally not payable.
When transferring a property as a gift, there are inheritance tax rules to consider (commonly known as the ‘seven year rule’). So, it’s a good idea to get advice before undertaking any transfer of ownership to ensure you’re in the best possible position. Our Wills and Probate and Family Law teams can help.
Can I get a refund if I paid the higher (second-home) rate?
Sometimes. If you buy a new main home before selling your old one, you’ll pay the higher additional-property rate at the time. But if you sell your previous main residence within three years (36 months), you can usually claim a refund of the 5% surcharge. There are time limits for claiming, so tell your conveyancer as soon as your old home is sold.
When do you have to pay stamp duty?
After you have completed on the purchase of the property, you have 14 days to file your SDLT return and pay any stamp duty owed. Because the deadline is tight and penalties are automatic, your conveyancer normally deals with this as part of completion so it’s handled straight away.
How do I pay stamp duty?
Your conveyancer typically deals with the payment of stamp duty: you transfer the Stamp Duty amount to them with your deposit and fees before completion, and they file the return and pay HMRC once the purchase completes. However, you remain responsible for ensuring that it is paid on time. Even if you do not need to pay any stamp duty, a return must still be filed.
Can I pay stamp duty in instalments?
No, stamp duty must be paid in full within 14 days of completion
Can I add the cost of stamp duty onto my mortgage?
Some lenders may let you add Stamp Duty to the amount you borrow, subject to their affordability criteria. Bear in mind you’ll pay interest on it over the mortgage term, and it will increase your loan-to-value ratio, which can affect the interest rate you’re offered.
What are the penalties for paying stamp duty late?
If your stamp duty documents are not stamped by HMRC within 30 days of when they were signed and dated, you will have to pay a penalty. The penalty amounts below apply to all documents submitted late:
| Length of delay | Amount of penalty |
| Late by up to 12 months | 10% of the duty, capped at £300 |
| Late by 12 to 24 months | 20% of the duty |
| Late by more than 24 months | 30% of the duty |
Interest is also payable to HMRC on top of the penalties if stamp duty is paid late.
What is stamp duty in Wales?
Stamp duty isn’t paid in Wales. Instead, if you’re buying a residential property in Wales, you’ll pay Land Transaction Tax (LTT) to the Welsh Revenue Authority. You can find out more about it on their website here.
What is stamp duty in Scotland?
Stamp duty isn’t paid in Scotland either. Instead, if you’re buying a residential property in Scotland, you’ll pay Land and Buildings Transaction Tax (LBTT) to Revenue Scotland. You can find out more about it on their website here.
In Summary
Stamp Duty can be a confusing part of buying a home – it’s not always obvious whether you’ll pay, or how much, before you begin. The good news is your conveyancer handles the calculation, the return and the payment for you, and is on hand to answer your questions. At Setfords, we have expert conveyancers across the country ready to help your purchase run smoothly.
Last reviewed: July 2026. Rates and thresholds are correct as at 24 July 2026 but can change at fiscal events, always check the current position on the GOV.UK Stamp Duty Land Tax pages before relying on them. This article is general information and does not constitute legal advice.
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