What is Stamp Duty?

Stamp Duty is a tax that you have to pay when purchasing a property. It's calculated by segmenting the purchase price of your property into different tax bands, each tax band has a different rate of tax associated with it.

The amount of stamp duty you pay will depend on a few things, whether you are a first time buyer, whether you're buying a second home or buy to let, and the value of your property. Below we've broken down the tax bands related to each type of homebuyer.

Remember, the tax is calculated by adding up how much is due in each band, so if you buy a standard residential as a non first time buyer for £250k, the first £125k falls in to band A and is tax free, while the subsequent £125k falls in to band B and 2% is paid on that amount.

First Time Buyer - Property Value Below £500k
• Band A - £0 - £300,000 - Tax payable: Nill
• Band B - £300,001 - £500,000 - Tax payable: 5%


Standard Residential & First Time Buyer With Property Value Above £500k
• Band A - £0 - £125,000 - Tax payable: Nill
• Band B - £125,000 - £250,000 - Tax payable: 2%
• Band C - £250,000 - £925,000 - Tax payable: 5%
• Band D - £925,000 - £1,500,000 - Tax payable: 10%
• Band E - + £1,500,000 - Tax payable: 12%


3% Surcharge for Second Homes and Buy to Let
• Band A - £0 - £125,000 - Tax payable: 3%
• Band B - £125,000 - £250,000 - Tax payable: 5%
• Band C - £250,000 - £925,000 - Tax payable: 8%
• Band D - £925,000 - £1,500,000 - Tax payable: 13%
• Band E - + £1,500,000 - Tax payable: 15%