When you’re eyeing a UK property – especially something high-value – Stamp Duty is often one of your biggest extra costs. Buyers pay it up front when purchasing a property – whether it’s a first home, a second home, or a buy-to-let investment.
You may also come across other taxes further down the line – such as Capital Gains Tax when selling, or Inheritance Tax when passing a property on. In most cases, though, Stamp Duty is the largest upfront cost. That’s why it pays to get the right advice early. At Black Brick, we can introduce you to leading independent tax specialists in London, so you have a clear picture before you commit.
Alongside any advice, you can also find everything you need to know about Stamp Duty below – with the option to download it as a PDF guide if that’s more convenient.
Stamp Duty, officially called Stamp Duty Land Tax (SDLT), is a tax on property purchases in England and Northern Ireland. Introduced in December 2003, it replaced the old “stamp” system. Buyers submit a land transaction return to HMRC to calculate and pay the tax, rather than relying on a physical stamp.
Scotland and Wales have their own systems – in Scotland, it’s called Land and Buildings Transaction Tax (LBTT), and in Wales, the Land Transaction Tax (LTT).
In England and Northern Ireland, Stamp Duty rates can differ depending on whether it’s your primary home, a second property, a buy-to-let, or you’re a non-UK resident – we cover the details in the sections below.
Stamp Duty in England and Northern Ireland is calculated in bands. You pay each rate only on the portion of the property price that falls within that band. There’s no cap – the higher the property price, the more Stamp Duty you pay overall. The same rules also apply whether the property is freehold or leasehold.
Here are the current rates for standard residential properties:
| Property Value | 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% |
| Over £1,500,000 | 12% |
Stamp Duty is due to HMRC within 14 days of completion. The rates above apply to standard residential properties for both freehold and leasehold purchases. For second homes, buy-to-let investments, or holiday lets, a 5% surcharge is added to each band from the very first £1 of the property price.
| Property Band | Taxable Portion | Rate | Tax For This Band |
|---|---|---|---|
| £0 – £125,000 | £125,000 | 0% | £0 |
| £125,001 – £250,000 | £125,000 | 2% | £2,500 |
| £250,001 – £925,000 | £675,000 | 5% | £33,750 |
| £925,001 – £1,500,000 | £575,000 | 10% | £57,500 |
| Over £1,500,000 | £500,000 | 12% | £60,000 |
| Total | £2 million | £153,750 |
If you want to see exactly how much Stamp Duty could apply to your purchase, try HMRC’s official calculator.
Second homes, holiday lets and buy-to-let investments: There’s a 5% surcharge on top of the standard rates. The 5% surcharge applies from £0 of the property price, meaning it’s added even to the portion that would normally be tax-free.
| Property Band | Standard Stamp Duty Rate | + 5% Surcharge | Total Rate |
|---|---|---|---|
| £0 – £125,000 | 0% | 5% | 5% |
| £125,001 – £250,000 | 2% | 5% | 7% |
| £250,001 – £925,000 | 5% | 5% | 10% |
| £925,001 – £1,500,000 | 10% | 5% | 15% |
| Over £1,500,000 | 12% | 5% | 17% |
Non-UK residents: Buyers who haven’t spent at least 183 days (6 months) in the UK in the past year face an additional 2% surcharge.
| Property Band | Standard Stamp Duty Rate | + 2% Surcharge | Total Rate |
|---|---|---|---|
| £0 – £125,000 | 0% | 2% | 2% |
| £125,001 – £250,000 | 2% | 2% | 4% |
| £250,001 – £925,000 | 5% | 2% | 7% |
| £925,001 – £1,500,000 | 10% | 2% | 12% |
| Over £1,500,000 | 12% | 2% | 14% |
First-time buyers: Properties up to £300,000 are exempt from Stamp Duty. For the portion between £300,001 and £500,000, Stamp Duty is charged at 5%. If the purchase price is over £500,000, no first-time buyer relief is available – the standard Stamp Duty rates apply.
| Property Band | Stamp Duty Rate | Notes |
|---|---|---|
| £0 – £300,000 | 0% | No Stamp Duty is paid |
| £300,001 – £500,000 | 5% | Only applies to portion above £300,000 |
| Over £500,000 | Standard rates | No first-time buyer relief – standard Stamp Duty rates apply to the full purchase price |
Important note for joint buyers: If a property is purchased jointly, the non-UK surcharge applies if just one buyer is a non-resident. It’s added on top of the standard rates and any additional property surcharge, and it applies to the whole purchase price.
How the surcharges can combine: If you’re a non-UK buyer purchasing a second home or buy-to-let, then both surcharges apply. That means you’d pay the standard Stamp Duty rate plus 5% for an additional property and another 2% for non-UK residency, making a total of 7% extra on top of the standard rates for each relevant portion of the property price (reaching an effective 19% on the highest band of Stamp Duty).
| Property Band | Standard Stamp Duty Rate | + 7% Surcharge | Total Rate |
|---|---|---|---|
| £0 – £125,000 | 0% | 7% | 7% |
| £125,001 – £250,000 | 2% | 7% | 9% |
| £250,001 – £925,000 | 5% | 7% | 12% |
| £925,001 – £1,500,000 | 10% | 7% | 17% |
| Over £1,500,000 | 12% | 7% | 19% |
These variations mean it’s important to know exactly which category your purchase falls into.
Special Property Types (Including Multiple Purchases)
Stamp Duty rates are lower for non-residential, mixed-use, or multiple-property purchases, such as commercial buildings, agricultural land, homes above shops, or transactions involving six or more residential properties in a single purchase (for example, a block of flats):
| Property Value | Stamp Duty Rate |
|---|---|
| Up to £150,000 | 0% |
| £150,001 to £250,000 | 2% |
| Over £250,000 | 5% |
Note: Unlike standard residential purchases, these property types aren’t charged the 5% second home surcharge or the 2% non-UK resident surcharge.
Corporate Purchases
If a company is buying a property for more than £500,000, Stamp Duty is charged at a flat 17% on the entire purchase price. Certain reliefs may apply in specific cases – for example, where the property is used for a lettings or rental business, or purchased by a property developer.
| Purchase Price | Stamp Duty Rate | Notes |
|---|---|---|
| Up to £500,000 | Standard residential or non-residential rates apply | Reliefs may apply in some cases |
| Over £500,000 | 17% flat rate on entire purchase price | Reliefs may apply in some cases |
For properties under £500,000, the standard residential or non-residential rates apply. In corporate purchases, the 5% additional property surcharge does not apply on top of the 17% rate. However, the 2% non-UK resident surcharge can still apply. This means non-UK companies – or UK companies controlled by non-residents – could face an effective rate of 19%.
An alternative route some buyers explore is purchasing the shares of a company that already owns a property, rather than buying the property directly. This can avoid Stamp Duty but involves significant legal and tax complexities and – as with reliefs – professional advice is essential.
You may be able to reclaim some Stamp Duty, for example if you paid the 5% additional property surcharge on a second home or buy-to-let and then sell your main residence within 36 months. Applications must be submitted to HMRC within 12 months of either selling your previous home or submitting the Stamp Duty return for your new property – whichever happens later.
Even a small shift in thresholds or rates can change the cost picture, catching many buyers off guard. For prime-market buyers, even minor changes can add tens of thousands to the total cost.
Stamp Duty rules are complex – and ever-changing. At Black Brick, we help you work with seasoned tax specialists and conveyancers, so planning for Stamp Duty is built into your purchase strategy and there are no surprises at the finish line.
Black Brick manages your journey – from negotiation to completion. We’ll connect you with trusted finance and tax advisers, and even negotiate the best price for your purchase, keeping Stamp Duty (and everything else) under control.
Contact us today and make your next property purchase feel effortless.
We would be delighted to hear from you to discuss your own property requirements. For a non-obligatory consultation, please contact us.
