What's the tax on your purchase?
Three nations, three tax systems. Pick yours below — we use the current 2026 rates from HMRC, Revenue Scotland and the Welsh Revenue Authority.
Purchase details
Band-by-band breakdown
| Band | Rate | Taxable | Tax |
|---|---|---|---|
| £0 – £125,000 | 0.0% | £125,000 | £0 |
| £125,000 – £250,000 | 2.0% | £125,000 | £2,500 |
| £250,000 – £925,000 | 5.0% | £35,000 | £1,750 |
Understanding UK property transaction taxes
The UK has three separate property transaction tax systems. In England and Northern Ireland, you pay Stamp Duty Land Tax (SDLT) administered by HMRC. Scotland has the Land and Buildings Transaction Tax (LBTT) overseen by Revenue Scotland, while Wales charges Land Transaction Tax (LTT) through the Welsh Revenue Authority. Each uses different tax bands, rates and relief thresholds, which is why it's important to select the right nation in the calculator above.
First-time buyer relief
First-time buyers in England and Northern Ireland get relief on properties up to £500,000, with no SDLT on the first £300,000. This can save first-time buyers up to £5,000 compared to standard rates. Scotland offers first-time buyer relief up to £175,000 with no upper price cap, meaning you still benefit from the relief even on higher-priced properties. Wales currently offers no specific first-time buyer relief for LTT. To qualify as a first-time buyer, you must never have owned a property anywhere in the world — including inherited properties. If buying as a couple, both buyers must be first-time buyers.
Additional property surcharges
If you're buying an additional property — a second home, holiday let or buy-to-let investment — expect a significant surcharge on top of the standard rates. In England and Northern Ireland, the surcharge is 5% applied to each SDLT band. Scotland charges an 8% Additional Dwelling Supplement (ADS) calculated on the full purchase price, not just the amount above a threshold. Wales has its own higher-rate bands for additional properties. These surcharges can add tens of thousands of pounds to the cost of a purchase, so they're essential to factor into any investment property calculation.
How stamp duty is calculated
All three UK property taxes work on a progressive, banded system — similar to income tax. You don't pay the higher rate on the entire purchase price, only on the portion that falls within each band. For example, a £400,000 property in England would pay 0% on the first £125,000, 2% on the next £125,000, and 5% on the remaining £150,000. This means the effective rate (total tax as a percentage of the purchase price) is always lower than the marginal rate of the highest band you reach.
When and how to pay
SDLT in England and Northern Ireland must be filed and paid within 14 days of completion. In Scotland, LBTT is due within 30 days, and in Wales, LTT must be paid within 30 days. In practice, your solicitor or conveyancer handles the filing and payment as part of the completion process — the cost is included in your completion statement alongside legal fees and other disbursements. However, you'll need to ensure the funds are available, so budget for stamp duty separately from your deposit.
Remember to factor stamp duty into your overall budget alongside your deposit and legal fees. Use our Affordability Calculator to see how much you can borrow, check your monthly repayments to make sure everything fits, or explore how overpayments could help you pay off the mortgage faster once you've moved in.