What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is the tax you pay when you buy a home or land above a certain price in England and Northern Ireland — charged in slices from 2% to 12% of the purchase price.
How stamp duty works in 2026/27
SDLT is charged in slices of the purchase price, like income tax bands: nothing up to £125,000, 2% from £125,001 to £250,000, 5% to £925,000, 10% to £1.5 million and 12% above that. First-time buyers pay nothing up to £300,000 (and 5% up to £500,000 — above that the relief disappears entirely). Buyers of second homes and buy-to-lets pay a 5% surcharge on every slice, and non-UK residents add another 2%. Scotland (LBTT) and Wales (LTT) run their own versions with different bands.
A worked example
On a £350,000 home as a mover: £0 on the first £125,000, £2,500 on the next £125,000 (2%), and £5,000 on the final £100,000 (5%) — a bill of £7,500, due within 14 days of completion. A first-time buyer of the same home pays only £2,500. Use the stamp duty calculator for your own figure under today's rules and every party's plan.
Where it came from — and why economists hate it
Stamp duty descends from a 1694 tax on documents; the modern SDLT dates from 2003, and the fairer "slice" system from 2014. It raises roughly £12 billion a year, but economists across the spectrum — including the IFS — call it one of Britain's worst taxes: because it taxes moving, it discourages downsizing, keeps workers away from jobs, and gums up the whole housing chain.
Why it matters now
Stamp duty is one of the most contested taxes in politics: the Conservatives would abolish it on main homes, Reform UK would cut it to 0% below £750,000, and the Proportional Property Tax would scrap it entirely, replacing it (and council tax) with an annual 0.48% charge on property values.
Plain-English guide for general information only — not financial, legal or tax advice. Rates are 2026/27 unless stated. Last reviewed 5 July 2026.
Frequently asked questions
How much stamp duty will I pay in 2026/27?
Nothing up to £125,000, then 2% to £250,000, 5% to £925,000, 10% to £1.5m and 12% above — charged in slices. A £350,000 home costs a mover £7,500; a first-time buyer pays nothing up to £300,000, so £2,500 on the same home.
Do first-time buyers pay stamp duty?
Not on homes up to £300,000. Between £300,000 and £500,000 they pay 5% on the portion above £300,000. Above £500,000 the relief vanishes completely and normal rates apply to the whole price.
Which parties would cut stamp duty?
The Conservatives would abolish SDLT on main homes entirely; Reform UK would charge 0% below £750,000; and the Proportional Property Tax backed by Andy Burnham would scrap it altogether in favour of an annual charge on property value.