Paying stamp duty

What is stamp duty?

Stamp duty is a property tax in England and Northern Ireland that you may have to pay if you purchase a home.

In Scotland, stamp duty is called Land and Buildings Transaction Tax (LBTT). In Wales, it's called Land Transaction Tax (LTT).

The different UK nations have different thresholds and rules regarding the payment of stamp duty.

Do you need to pay stamp duty?

Paying stamp duty on residential properties

If you're purchasing a residential home in the UK, you may need to pay some form of Stamp Duty.

In England and Northern Ireland, you'll have to pay if you purchase a residential property over £125,000. According to Zoopla, UK homes averaged at £267,200 in early 2025 so it's likely many homeowners will need to pay stamp duty when they buy a property.

However, first-time buyers get zero-tax relief up to £300,000 and only pay 5% on the portion from £300,001 to £500,000 (if the property price is more than £500,000 you can't claim the relief).

In Scotland, all residential properties over £145,000 are subject to LBTT (although first-time buyers don't need to pay unless the property price is over £175,000).

In Wales, residential properties over £225,000 are subject to LTT.

Paying stamp duty on commercial properties

In England, Northern Ireland and Scotland, you will need to pay stamp duty on a commercial property if it's over £150,000.

If you're buying a commercial property in Wales, you will only need to pay stamp duty on properties over £225,000.

Paying stamp duty on new build homes

If you're purchasing a new build home, then it will be subject to the same stamp duty rates as any other residential property.

This means in England and Northern Ireland you'll be required to pay stamp duty if it costs more than £125,000.

How much stamp duty do you need to pay?

The amount of stamp duty you need to pay for a residential home depends on how much it costs. There are different price bands in which different rates apply. You can find out how much stamp duty you'll have to pay using our stamp duty calculator.

The tables below show the different bands and rates for England and Northern Ireland, Scotland, and Wales.

England and Northern Ireland Stamp Duty thresholds

So, if you bought a home for £300,000 and you're a UK resident who has owned a property before, you would pay 0% stamp duty on the amount between £0 and £125,000, then 2% on the amount between £125,001 and £250,000 and 5% on the amount between £250,001 and £300,000.

You would therefore have to pay £5,000 in Stamp Duty.

Scotland LBTT thresholds

In Scotland, if you purchased a property for £300,000, you would pay 0% on the amount between £0 and £145,000, 2% on the amount between £145,000 and £250,000 (£105,000) and 5% on the amount between £250,000 and £300,000 (£50,000).

So, you would have to pay £4,600 in LBTT.

Wales LTT thresholds

In Wales, if you purchased a property for £300,000, you would pay 0% on the amount between £0 and £225,000 and 6% on the amount between £225,000 and £300,000 (£75,000).

So, you would have to pay £4,500 in LTT.

First-time buyer stamp duty rates

In England and Northern Ireland, first-time buyers get Stamp Duty relief up to £300,000, provided the property is less than £500,000. You'll also need to pay a 5% stamp duty on the portion of the property between £300,001 to £500,000.

In Scotland, first-time buyers get LBTT relief up to £175,000, saving them a maximum of £600 on a property purchase.

In Wales, there's no additional LTT relief for first-time buyers.

Second home rates

If you're already own a home, and are purchasing an additional property worth over £40,000 (whether as a buy-to-let property or as a holiday home), you'll likely be subject to a surcharge in addition to stamp duty.

In England and Northern Ireland, the second home surcharge is 5% on top of the standard Stamp Duty rates. This increased by 2% after the announcement in the 2024 Autumn budget.

In Scotland, this surcharge is known as the Additional Dwelling Supplement (ADS) and is 8% of the property price.

In Wales, there is also an LTT second home surcharge.

When should you pay stamp duty?

You need to pay stamp duty after your completion date, within a set amount of time. In England, it needs to be paid within 14 days.

In Scotland and Wales, it needs to be paid within 30 days.

How can you pay stamp duty?

For the majority of purchases, your solicitor will arrange the stamp duty payment for you, but the responsibility to make sure you’ve paid what you owe lies with you as the buyer - so be sure to check with them. 

If your solicitor does not pay on your behalf, you may need to submit an online return or file and post a paper return in order to pay your stamp duty.

Can you get stamp duty refunded?

If you buy another home and aren't able to sell your old home before the completion date of the new sale, you will normally need to pay the second home surcharge.

However, if you then sell your old home within 36 months after completion, you can normally get this refunded.

You'll need to apply for this refund, which you can do online.