Stamp duty explained (SDLT) — how it works
Stamp duty is a tax you pay when buying property. Here’s how the tiered bands work, first-time buyer relief, and where to check the current rates.
On this page
Stamp duty is one of the biggest one-off costs of moving — and it’s widely misunderstood as a flat percentage. It isn’t.
How the tiers work
SDLT is tiered like income tax: you pay nothing up to a threshold, then a set rate on the portion of the price in each band above it — never a single rate on the whole price.
First-time buyers and extra properties
- First-time buyers usually get relief — a higher tax-free threshold up to a price cap.
- Buying an additional property (e.g. a second home or buy-to-let) usually attracts a higher rate.
Not the same across the UK
In short
Stamp duty (SDLT in England & NI) is a tiered tax on property purchases — a rate on each portion above thresholds, not a flat percentage. First-time buyers usually get relief and additional properties cost more. Rates change, so use the GOV.UK calculator for your exact figure, and check LBTT/LTT if you’re buying in Scotland or Wales.
Frequently asked questions
How is stamp duty calculated?
It’s tiered, like income tax. You pay nothing up to a threshold, then a rate on the portion of the price in each band above it — not a single rate on the whole price. GOV.UK has an official calculator for the exact figure.
Do first-time buyers pay stamp duty?
First-time buyers usually get relief — a higher tax-free threshold, and sometimes a reduced rate above it, up to a price cap. The exact figures change, so check the current first-time buyer rules on GOV.UK.
Is stamp duty different in Scotland and Wales?
Yes. England and Northern Ireland use Stamp Duty Land Tax (SDLT). Scotland uses Land and Buildings Transaction Tax (LBTT), and Wales uses Land Transaction Tax (LTT), each with their own bands.
Sources & last checked
- Stamp Duty Land Tax — GOV.UK
- Stamp Duty Land Tax calculator — GOV.UK
Last checked against official sources: 9 July 2026.