Guide
Stamp Duty Land Tax is one of the biggest costs on top of the price. It's charged in bands, first-time buyers get relief, and second homes carry a surcharge.
Stamp Duty Land Tax (SDLT) is the tax on buying property in England and Northern Ireland. It catches people out because it isn't a flat percentage of the price.
Each slice of the price is taxed at its own rate. As of 2025 the standard bands are: nothing on the first £125,000, 2% up to £250,000, 5% up to £925,000, 10% up to £1.5m, and 12% above. So on a £400,000 home you pay 0% on the first £125k, 2% on the next £125k, and 5% on the last £150k. That comes to £10,000, less than a flat 5% would.
If you and everyone buying with you have never owned a home, you pay nothing up to £300,000 and 5% on the slice from £300,000 to £500,000. Above £500,000 you lose the relief and pay the standard rates.
If you'll still own another property once the purchase completes, such as a second home or a buy-to-let, you pay an extra 5% on top of every band. You also pay it if you complete on the new place before selling the old one, though you can usually reclaim it if you sell within three years.
Nestfair works out your SDLT in the costs panel of every report, including first-time relief and the surcharge.