How the tax actually works
"Stamp Duty" is the catch-all name for the tax on buying a home, but the UK has three separate systems with different bands. The key idea in all of them: the rate applies only to each slice of the price inside a band — not to the whole price. That is why a £350,000 home costs far less than 5% of £350,000.
England & Northern Ireland — SDLT (2026/27)
| Price slice | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5m | 10% |
| Over £1.5m | 12% |
Worked example — a £350,000 home: £0 on the first £125,000, 2% (£2,500) on the next £125,000, and 5% (£5,000) on the final £100,000. Total £7,500. GOV.UK — SDLT · 2026/27
First-time buyers in England
First-time buyers get a higher nil-rate band: nothing up to £300,000, then 5% from £300,000 to £500,000. The relief only applies to homes costing up to £500,000. On the same £350,000 home, a first-time buyer pays £2,500 (5% on the £50,000 above £300,000) — a saving of £5,000. GOV.UK — SDLT first-time buyer relief · 2026/27
Scotland — LBTT (2026/27)
| Price slice | Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Over £750,000 | 12% |
Worked example — the same £350,000 home: £0 up to £145,000, 2% (£2,100) to £250,000, 5% (£3,750) to £325,000, then 10% (£2,500) on the final £25,000. Total £8,350. Scottish first-time buyers get a nil-rate band raised to £175,000. gov.scot — LBTT · 2026/27
Wales — LTT (2026/27)
| Price slice | Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1.5m | 10% |
| Over £1.5m | 12% |
Worked example — the same £350,000 home: £0 up to £225,000, then 6% (£7,500) on the £125,000 above it. Total £7,500. Wales has no separate first-time buyer relief. gov.wales — LTT · 2026/27
What is not included
These figures are for a single main home. They do not include the higher rates for additional properties (buy-to-let or second homes, an extra 5% in England from 2025), nor company purchases. Stamp Duty is paid on the price before any mortgage deposit, and is payable within 14 days of completion in England and Wales, or 30 days in Scotland.