Stamp duty catches more buyers out than almost any other cost in the house-buying process. Not because the maths is hard – it isn’t, once you’ve seen it laid out – but because people budget for the deposit, the solicitor, the survey, and then forget there’s a tax bill due within a fortnight of getting the keys.
This guide walks through exactly what Stamp Duty Land Tax (SDLT) is, what you’ll pay at different price points, when it’s due, and the mistakes that cost buyers real money. We’ll also show where it sits alongside the rest of your moving house costs, because stamp duty is only one line in a much bigger budget.
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What Is Stamp Duty Land Tax (SDLT) and When Does It Apply?
Stamp Duty Land Tax is a one-off tax you pay when you buy property or land over a certain price in England and Northern Ireland. It’s charged on the purchase price (or market value, for some transfers) and it’s due whether you’re buying a first home, upsizing, or picking up a buy-to-let.
SDLT applies to:
Freehold and leasehold residential purchases
New leases over a certain value
Transfers of property where money or a mortgage changes hands (including some divorce and gifting scenarios)
It does not apply if you’re renting, or if the property costs less than the nil-rate threshold outlined below.
Two things worth flagging early:
Scotland doesn’t use SDLT at all – it has its own tax, the Land and Buildings Transaction Tax (LBTT), run by Revenue Scotland.
Wales has its own version too, the Land Transaction Tax (LTT), administered by the Welsh Revenue Authority.
We’ll cover both further down, because if you’re moving to Edinburgh or Cardiff, the England-and-Northern-Ireland rules below simply don’t apply to you.
Current SDLT Rates and Thresholds for Standard Residential Purchases
For a standard residential purchase in England or Northern Ireland, SDLT is charged in bands – a bit like income tax. You only pay the higher rate on the portion of the price that falls into that band, not the whole amount.
The current bands are:
Portion of price | SDLT rate |
|---|---|
£0 – £125,000 | 0% |
£125,001 – £250,000 | 2% |
£250,001 – £925,000 | 5% |
£925,001 – £1,500,000 | 10% |
Above £1,500,000 | 12% |
These thresholds reverted to their pre-2022 levels on 1 April 2025, so if you’ve seen older figures online (a £250,000 nil-rate band was in place before that), ignore them. The official, always-up-to-date version lives on the gov.uk Stamp Duty Land Tax page, and it’s worth bookmarking – rates do change with the Budget.
First-Time Buyer Relief: How Much You Can Save
If you’ve never owned a property anywhere in the world, and the home you’re buying is your only or main residence, you’re entitled to first-time buyer relief.
Here’s what it looks like:
0% on the first £300,000 of the purchase price
5% on the portion between £300,001 and £500,000
No relief at all if the property costs more than £500,000 – you fall back to standard rates on the entire price, not just the excess
That last point trips people up constantly. Go £1 over £500,000 and you lose the relief entirely, not just on the amount above the threshold. If you’re close to that line, it’s worth negotiating the price down rather than losing thousands in relief.
All buyers named on the mortgage and title need to qualify as first-time buyers – if one of you has owned property before (even abroad, even years ago), the relief doesn’t apply to the purchase at all. Our first-time mover guide covers the wider process, from mortgage offers to exchange, if this is your first time going through it.
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Buying a Second Home, Buy-to-Let or Company Purchase: The Surcharge Explained
Buying an additional residential property – a second home, a holiday let, or a buy-to-let – means paying a 5% surcharge on top of the standard rates, across every band, from the first pound.
So the second-home rates look like this:
Portion of price | Standard rate | Second home rate |
|---|---|---|
£0 – £125,000 | 0% | 5% |
£125,001 – £250,000 | 2% | 7% |
£250,001 – £925,000 | 5% | 10% |
£925,001 – £1,500,000 | 10% | 15% |
Above £1,500,000 | 12% | 17% |
A few points that matter:
Non-UK residents pay an extra 2% on top of these figures.
Companies buying residential property, particularly high-value homes purchased through corporate structures, can face a 15% flat rate in certain cases – this is an anti-avoidance measure, not a typo.
If you’re selling your main home and buying a new one but the sale falls through before completion on the new place, you may have to pay the surcharge upfront and claim it back later once the old property sells (usually within 12 months).
This is a complicated corner of SDLT, and if you’re buying through a limited company or juggling two properties at once, it’s worth getting a conveyancer or tax adviser to check your specific situation before you exchange.
How to Calculate What You’ll Actually Pay: Worked Examples
Numbers make this clearer than any table. Here’s what three different buyers would actually pay.
Example 1: First-time buyer, £280,000 flat
Falls under the £300,000 first-time buyer threshold
SDLT due: £0
Example 2: Home mover (not first-time buyer), £350,000 house
0% on first £125,000 = £0
2% on £125,001–£250,000 (£125,000) = £2,500
5% on £250,001–£350,000 (£100,000) = £5,000
Total SDLT: £7,500
Example 3: Buying a second home at £450,000
Standard SDLT on £450,000: £0 + £2,500 + (5% x £200,000 = £10,000) = £12,500
Plus 5% surcharge on the full £450,000 = £22,500
Total SDLT: £35,000
See how the second-home surcharge nearly triples the bill in that last example? That’s the number people underestimate most often. For a precise figure on your own purchase, always run it through the official gov.uk Stamp Duty Land Tax calculator before you commit – it takes two minutes and accounts for reliefs automatically.
Once you know your number, it’s worth slotting it into a full moving budget rather than treating it in isolation. Our guide to moving house costs breaks down solicitor fees, surveys, and removals alongside SDLT so you can see the whole picture before exchange.
And if you’re at the stage of thinking about the physical move itself – not just the paperwork – get a quote from EcoGreen Movers early. Removal slots book up fast around common completion dates (month-ends, Fridays), and knowing your moving cost alongside your stamp duty bill makes budgeting far less stressful.
When and How You Must Pay SDLT (The 14-Day Deadline)
You must file your SDLT return and pay any tax due within 14 days of completion. That’s calendar days, not working days, and the clock starts the day contracts complete – not the day you move your sofa in.
In practice:
Your solicitor or conveyancer almost always handles this for you, filing the return and paying HMRC directly out of the funds held for completion. This is the norm for the vast majority of purchases.
You can file it yourself using the online SDLT return if you’re not using a conveyancer, though most buyers don’t go this route because of how easy it is to make an error.
Either way, you are legally responsible for the return being filed on time, even if a solicitor is acting for you. Always confirm with them, in writing, that it’s been submitted.
Miss the deadline and HMRC charges an automatic £100 penalty, rising to £200 if it’s still outstanding after three months, plus daily interest on the unpaid tax. Leave it unresolved for 12 months and the penalty can climb to the full amount of tax owed. It’s a genuinely painful mistake to make over what’s usually just an admin slip.
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Common Costly Mistakes to Avoid
A handful of errors account for most of the stamp duty headaches we hear about from buyers:
Missing the 14-day deadline. Even when a solicitor is handling it, confirm it’s been filed – don’t assume.
Not claiming first-time buyer relief because you didn’t realise you qualified, or because a joint buyer’s past ownership wasn’t declared correctly (both need to be first-time buyers for the relief to apply).
Misjudging the additional-property surcharge, especially when buying before selling – plenty of people are caught out by the 5% surcharge on what they thought was just a “bridging” purchase.
Forgetting SDLT entirely when budgeting for the total cost of the move – it’s easy to focus on deposit and mortgage and treat stamp duty as an afterthought, when on a £350,000 home mover purchase it’s already £7,500.
Overpaying by not checking reliefs for uninhabitable properties, multiple dwellings, or mixed-use purchases – these are niche, but worth a quick check with your solicitor if your purchase is unusual in any way.
Working through a proper moving checklist early on helps catch these gaps before they become expensive surprises on completion day.
Scotland and Wales: Different Rules, Different Names
If you’re buying in Scotland or Wales, forget everything above on rates – the bands are different, even if the logic (progressive tax by portion) is similar.
Scotland – Land and Buildings Transaction Tax (LBTT):
0% up to £145,000
2% from £145,001–£250,000
5% from £250,001–£325,000
10% from £325,001–£750,000
12% above £750,000
First-time buyers get a higher nil-rate band of £175,000
The additional-property surcharge (Additional Dwelling Supplement) is 8%, higher than England’s 5%
Full detail sits with Revenue Scotland’s LBTT residential guidance. If you’re relocating to the capital, our Edinburgh removals team deals with LBTT-affected completions regularly and can help you plan the move around it.
Wales – Land Transaction Tax (LTT):
0% up to £225,000
6% from £225,001–£400,000
7.5% from £400,001–£750,000
10% from £750,001–£1,500,000
12% above £1,500,000
Second homes and buy-to-lets start at a 5% higher rate from the first pound, with a lower £180,000 nil-rate threshold
The Welsh Revenue Authority’s LTT rates and bands page has the current figures. Don’t rely on SDLT calculators for a Welsh purchase – they’ll give you the wrong number.
Where Stamp Duty Fits Into Your Total Moving Costs
Stamp duty is usually the single biggest one-off cost after your deposit, but it’s rarely the only cost that catches people out. A realistic moving budget also includes:
Solicitor and conveyancing fees – typically £850–£1,500 plus disbursements
Survey costs – from around £250 for a basic condition report to £600+ for a full building survey
Mortgage arrangement and valuation fees
Removal costs – which vary by distance, volume, and whether you need packing included
Moving-day logistics – parking permits, storage if there’s a gap between completion dates, and utility set-up
Stamp duty tends to get paid and forgotten about quickly because it’s handled by your solicitor. The removals side of the move is the bit you actually live through on the day, and it’s worth planning properly rather than leaving it to the last week. Whether you’re relocating across Manchester or moving into London, sorting your removal firm early – ideally as soon as you’ve exchanged – means one less thing to worry about once completion day and your SDLT deadline are both bearing down on you.
We’ve completed over 400 moves at EcoGreen Movers, we’re fully insured for every job, and we’ve planted more than 100 trees as part of how we run the business – because a move shouldn’t cost the earth in more ways than one. If you’d like a straightforward, no-pressure quote for your move, get in touch with us and we’ll talk you through timing, costs, and what to expect on the day.
FAQ: Stamp Duty and Moving House
Do I have to pay stamp duty on every house I buy in the UK? No. Stamp Duty Land Tax only applies in England and Northern Ireland. Scotland charges LBTT and Wales charges LTT instead, and both have their own rates and thresholds, so check the right system for where you’re buying.
How much is stamp duty on a £300,000 house? For a home mover (not a first-time buyer), SDLT on £300,000 is £5,000 (0% on the first £125,000, 2% on the next £125,000, 5% on the remaining £50,000). A first-time buyer would pay £0, since £300,000 sits at the top of the nil-rate threshold for that relief.
Can I avoid the stamp duty surcharge on a second home? Only if it genuinely isn’t an additional property – for example, if you sell your main home before or on the same day as completing on the new one. If you complete on the new purchase first, you’ll usually pay the surcharge upfront, then can reclaim it if you sell your previous main residence within 12 months.
What happens if I miss the 14-day SDLT deadline? HMRC issues an automatic £100 penalty, rising to £200 after three months, plus daily interest on any unpaid tax. In cases left unresolved beyond 12 months, penalties can reach the full value of the tax owed, so it’s worth chasing your solicitor to confirm the return has actually been filed.
Is stamp duty included in my mortgage? No – stamp duty is a separate cost you (or your solicitor, on your behalf) pay directly, on top of your deposit and any mortgage funds. Some lenders will let you factor it into affordability calculations, but it isn’t rolled into the mortgage itself in the way legal fees sometimes can be.
Sorted Your Stamp Duty? Now Let’s Sort Your Move
Stamp duty is one of those costs that feels abstract right up until it’s a real number on your solicitor’s completion statement. Know your band, check whether first-time buyer relief or the additional-property surcharge applies, and file within 14 days – get those three things right and the tax side of your purchase is done.
The physical move is the part that still needs proper planning: boxes, van space, timing around your completion date, and getting everything from A to B without damage or stress. That’s where we come in. EcoGreen Movers has completed 400+ moves across the UK, we’re fully insured on every job, and we run our business on eco-friendly practices – including planting over 100 trees to date – because we think a good move shouldn’t leave a bad footprint.
Whether you’re heading into your first home or relocating a growing family, get a free quote from EcoGreen Movers and let’s get your move sorted, properly and sustainably.
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