How much is stamp duty on a £300,000 house?

For a standard residential property at £300,000, you pay 0% on the first £250,000 (£0) and 5% on the remaining £50,000 (£2,500), totaling £2,500 in stamp duty. First-time buyers pay £0 as the property is under £425,000. For an additional property, you'd pay 3% on the first £250,000 (£7,500) and 8% on the remaining £50,000 (£4,000), totaling £11,500.

Do I have to pay stamp duty as a first-time buyer?

First-time buyers purchasing properties up to £425,000 pay no stamp duty. For properties between £425,001 and £625,000, you pay 5% only on the amount above £425,000. For example, on a £500,000 property, you'd pay 5% on £75,000 = £3,750. Properties over £625,000 don't qualify for first-time buyer relief, and you pay standard rates on the entire amount.

When do I need to pay stamp duty?

Stamp duty must be paid within 14 days of completing your property purchase (when ownership transfers to you). Your solicitor typically handles the payment and filing of the SDLT return on your behalf, using funds you've provided. Late payment incurs penalties: £100 if up to 3 months late, £200 if 3-6 months late, plus daily penalties and potential interest charges for longer delays.

Can I avoid the 3% additional property surcharge?

You can avoid the 3% surcharge if you're replacing your main residence (selling your old home within 36 months of buying the new one), buying your first property, or if the additional property costs less than £40,000. You may also be exempt if you're separated from your spouse and buying a new main residence. Keep detailed records to prove eligibility for any exemption.

What happens if I buy a property just over a stamp duty threshold?

You only pay the higher rate on the amount above the threshold, not the entire price. For example, if you buy at £250,001 (£1 over the threshold), you pay 0% on £250,000 and 5% on just £1 (5p), totaling £0.05. The progressive system means there's no cliff edge where crossing a threshold dramatically increases your total tax bill.

Is stamp duty different in Scotland and Wales?

Yes. Scotland uses Land and Buildings Transaction Tax (LBTT) with different rates and thresholds. Wales uses Land Transaction Tax (LTT) with its own structure. Both generally have lower starting thresholds than England. If buying in Scotland or Wales, use a calculator specific to that region or consult local property professionals for accurate calculations.

Can I get a refund on stamp duty?

Refunds are possible in specific circumstances: if you paid the 3% surcharge but sold your previous home within 36 months, if you overpaid due to calculation errors, or if a transaction is reversed. You must claim refunds within specific time limits (usually 12 months for surcharge refunds, 4 years for overpayments). File an amended SDLT return with supporting documentation.

Do I pay stamp duty on a gifted property?

If a property is genuinely gifted with no payment, there's no stamp duty. However, if you take on an existing mortgage or pay anything for the property, stamp duty applies to that amount. Transfers between spouses or civil partners during marriage/partnership are usually exempt. Complex gift arrangements may have tax implications - seek professional advice.

What is multiple dwellings relief?

Multiple dwellings relief applies when buying more than one dwelling in a single transaction (e.g., buying two flats together). The stamp duty is calculated by dividing the total price by the number of dwellings, calculating tax on that average, then multiplying by the number of dwellings. This can significantly reduce your stamp duty bill on multi-property purchases.

How do I file my stamp duty return?

Your solicitor or conveyancer typically files the SDLT return (form SDLT1) online with HMRC and pays the tax on your behalf using funds you've provided. You'll receive an SDLT5 certificate as proof of payment, which you need to register the property with the Land Registry. If handling it yourself, file online through HMRC's website within 14 days of completion.

Stamp Duty Calculator UK | Free SDLT Calculator

Band	Rate	Tax
Up to £250,000	0.0%	£0
£250,001 - £925,000	5.0%	£2,500

Tax Band	Threshold	Rate	Tax Amount
Up to £250,000	£0 - £250,000	0.0%	£0
£250,001 - £925,000	£250,000 - £925,000	5.0%	£2,500
Total Stamp Duty	£2,500

Property Price	Stamp Duty	Effective Rate	Total Cost
£240,000	£0	0.00%	£240,000
£270,000	£1,000	0.37%	£271,000
£300,000(Your Price)	£2,500	0.83%	£302,500
£330,000	£4,000	1.21%	£334,000
£360,000	£5,500	1.53%	£365,500

Property Value Band	Tax Rate
Up to £250,000	0%
£250,001 - £925,000	5%
£925,001 - £1,500,000	10%
Over £1,500,000	12%

Understanding Stamp Duty: What It Is and Why It Matters

Stamp Duty Land Tax (SDLT) is a tax paid when purchasing property or land in England and Northern Ireland over a certain price threshold. This progressive tax is calculated in bands, similar to income tax, meaning you pay different rates on different portions of the property price. Understanding stamp duty is crucial for property buyers as it represents a significant upfront cost that must be paid within 14 days of completion. The amount you pay depends on several factors including the property price, whether it's your main residence or an additional property, and whether you qualify as a first-time buyer. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT), which have different rates and thresholds. Proper stamp duty planning can save thousands of pounds and help you budget accurately for your property purchase.

How to Interpret Your Stamp Duty Results

Understanding the Tax Breakdown

Your stamp duty calculation shows how much tax you pay in each band. For example, on a £400,000 residential property, you pay 0% on the first £250,000 (£0), then 5% on the remaining £150,000 (£7,500), giving a total of £7,500. This progressive system means you never pay the highest rate on the entire property price - only on the portion that falls into each band. The breakdown table shows exactly how your total stamp duty is calculated across all applicable bands.

Effective Rate vs Marginal Rate

The effective rate is your total stamp duty as a percentage of the property price. This is always lower than the marginal rate (the highest band rate you pay) because of the progressive band system. For instance, a £500,000 property has a marginal rate of 5% but an effective rate of only 2.5% (£12,500 ÷ £500,000). Understanding this distinction helps you accurately budget and compare properties at different price points.

Total Cost to Budget

The total cost shown includes both the property price and stamp duty. This is the actual amount you need to budget for your purchase. Remember that stamp duty must be paid within 14 days of completion, so ensure you have these funds available separately from your deposit and mortgage. Additional costs like legal fees, surveys, and moving expenses should also be factored into your overall budget.

First-Time Buyer Relief

First-time buyers purchasing properties up to £625,000 benefit from relief, paying no stamp duty on the first £425,000 and 5% on the portion from £425,001 to £625,000. This can save up to £11,250 compared to standard rates. However, if the property costs more than £625,000, you lose all first-time buyer relief and pay standard rates on the entire purchase price.

Stamp Duty Formula & Methodology

Progressive Band Calculation

Stamp duty is calculated using a progressive band system. For residential properties in England: 0% on the first £250,000, 5% on £250,001-£925,000, 10% on £925,001-£1,500,000, and 12% on amounts over £1,500,000. The formula is: Total SDLT = (Band1 Amount × Rate1) + (Band2 Amount × Rate2) + ... For example, a £1,000,000 property: £250,000 × 0% = £0, £675,000 × 5% = £33,750, £75,000 × 10% = £7,500, Total = £41,250.

Additional Property Surcharge

If you're buying an additional residential property (and already own another), you pay an extra 3% on top of standard rates across all bands. This means rates become: 3% (up to £250,000), 8% (£250,001-£925,000), 13% (£925,001-£1,500,000), and 15% (over £1,500,000). The surcharge applies to the entire purchase price, not just the portion above a threshold. On a £400,000 additional property, you'd pay £17,500 instead of £7,500 - a £10,000 difference.

Non-Residential Property Rates

Non-residential and mixed-use properties have different, generally lower rates: 0% up to £150,000, 2% on £150,001-£250,000, and 5% on amounts over £250,000. Mixed-use properties (combining residential and commercial elements) qualify for these rates, which can result in significant savings. For example, a £500,000 mixed-use property pays £14,500 in stamp duty versus £12,500 for a standard residential property.

Why This Progressive System Works

The progressive band system ensures fairness by taxing higher-value properties at higher rates while protecting lower-value purchases. It prevents sudden jumps in tax liability and makes the system more equitable. The bands are designed to balance revenue generation with housing market accessibility, with regular reviews to adjust thresholds in line with property price inflation and government policy objectives.

Expert Tips & Best Practices for Stamp Duty

Timing Your Purchase Strategically

Consider timing your purchase to maximize relief or avoid surcharges. If selling your main residence and buying another, you may avoid the 3% surcharge if you sell your old home within 36 months. First-time buyers should ensure they meet all criteria before completion. If buying near a band threshold, even small price negotiations can result in significant stamp duty savings - for example, negotiating from £925,001 to £925,000 saves £100 in tax.

Claiming Reliefs and Exemptions

Multiple reliefs exist beyond first-time buyer relief. Multiple dwellings relief can reduce stamp duty when buying more than one property in a single transaction. Certain property types (caravans, houseboats, properties under £40,000) may be exempt. Disadvantaged area relief may apply in specific locations. Always check eligibility for all available reliefs - they can save thousands of pounds but must be claimed correctly on your SDLT return.

Avoiding Common Mistakes

Don't miss the 14-day payment deadline - late filing incurs penalties starting at £100 and increasing over time. Ensure you file the SDLT return even if no tax is due (properties under £40,000). Keep all documentation proving first-time buyer status or relief claims. If buying with others, ensure all parties meet first-time buyer criteria or you'll lose the relief. Consider professional advice for complex situations like company purchases or mixed-use properties.

Planning for Additional Costs

Budget for stamp duty alongside other purchase costs: legal fees (£850-£1,500), surveys (£250-£1,000), mortgage arrangement fees (£0-£2,000), and moving costs (£500-£1,200). Set aside 3-5% of the property price for all transaction costs. Consider the impact on your deposit - a larger deposit might secure better mortgage rates, potentially offsetting some of the stamp duty cost through lower interest payments over time.

Regional Variations

Remember that Scotland uses LBTT with different rates and thresholds: 0% up to £145,000, 2% on £145,001-£250,000, 5% on £250,001-£325,000, 10% on £325,001-£750,000, and 12% over £750,000. Wales uses LTT with its own structure. If buying in these regions, use the appropriate calculator or consult local experts. Cross-border purchases may have additional complexities requiring specialist advice.

Important Limitations and Considerations

This calculator provides estimates based on current SDLT rates for England and Northern Ireland. Rates and thresholds change periodically - always verify current rates with HMRC before finalizing your purchase. The calculator assumes standard residential purchases; special rules apply for corporate purchases, shared ownership, transfers of equity, and inherited properties. First-time buyer relief has specific eligibility criteria including never having owned property anywhere in the world. The 3% additional property surcharge has exceptions for certain circumstances like replacing your main residence. For complex situations, unusual property types, or purchases involving trusts or companies, consult a qualified tax advisor or solicitor. This calculator does not account for potential future rate changes, temporary relief schemes, or regional variations in Scotland and Wales. Always file your SDLT return within 14 days of completion to avoid penalties, even if no tax is due.