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Property tax · England & NI

Reform UK's stamp duty cut: what would you save?

Reform would replace today's stamp duty bands with a much flatter set — nothing to pay below £750,000, then 2% and 4% — a one-off saving for most home buyers.

Status: Proposal — not law Region: England & NI Party: Reform UK (Nigel Farage) From: "Our Contract", live 2025–26

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What's being proposed

Reform UK would cut stamp duty land tax (SDLT) sharply for people buying a home. In place of today's bands — which start biting at £125,000 — the party proposes no stamp duty at all on the first £750,000 of a purchase, 2% on the slice from £750,000 to £1.5m, and 4% above £1.5m. The party set this out in its 2024 "Our Contract with You" and has kept it as part of its tax-cutting platform into 2025–26.

Where it comes from

Stamp duty is one of the most criticised taxes in the UK: because it is charged every time a property changes hands, economists argue it gums up the market, discourages downsizing and adds thousands to the cost of moving. Reform frames a large cut as a way to help first-time buyers and families trading up, and as part of a wider package of tax reductions. Critics counter that SDLT raises billions a year and that the cash benefit is largest for buyers of the most expensive homes.

How it would work

  • 0% on the portion of the price up to £750,000.
  • 2% on the portion from £750,000 to £1.5m.
  • 4% on the portion above £1.5m.
  • Because the nil-rate band reaches £750,000, most buyers — including first-time buyers — would pay nothing.
  • Reform's contract is written around residential purchases; it does not spell out the treatment of the second-home surcharge, so this calculator keeps today's 5% additional-property surcharge on top of the new bands for second homes (clearly flagged below).
Want to compare? The Conservatives would abolish stamp duty entirely on main homes, and the Proportional Property Tax would scrap it but replace it (and council tax) with an annual charge. Reform's plan keeps a small charge on the most expensive homes but wipes it out for the vast majority.

The case for and against

Supporters argue

  • It removes the upfront tax on moving for almost every buyer, helping first-time buyers, movers and downsizers.
  • A freer housing market can mean homes are used more efficiently.
  • Unlike an annual property tax, it creates no new ongoing charge.

Critics argue

  • SDLT raises around £11–15bn a year; a cut this large has to be paid for.
  • The biggest cash savings go to buyers of higher-value homes.
  • Cutting stamp duty without touching council tax leaves the wider property-tax system unreformed, and could feed through into higher prices.
Interactive calculator

What would you save?

Enter what you're paying for a home to compare today's stamp duty (England 2025/26 rates) with Reform's 0% / 2% / 4% bands. Most buyers under £750,000 would pay nothing.

A what-if, not a forecast. Nothing here is law. Today's figure uses current England stamp duty rules; the proposed figure uses Reform's stated 0% / 2% / 4% bands. Not financial advice.

Your purchase

Buyer type
Reform's 0% band reaches £750,000, so most buyers — including first-time buyers — pay nothing. Second homes keep the 5% surcharge in this model.

Today's stamp duty uses England's 2025/26 bands (also applicable in Northern Ireland): nil to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5m, 12% above, with first-time-buyer relief and a 5% additional-property surcharge. Reform's proposed bands are 0% to £750,000, 2% to £1.5m and 4% above. Reform has not specified the second-home surcharge, so this tool keeps the current 5% surcharge on additional properties. Scotland and Wales set their own equivalents. Not financial advice.

Sources & further reading

  • Reform UK — the party's policy platform, including its stamp duty proposal.
  • GOV.UK — current Stamp Duty Land Tax rates and rules.
  • House of Commons Library — background on stamp duty and property taxation.

Figures are illustrative and based on reported proposals; rates and rules may change. General information, not financial, legal or tax advice.

Frequently asked questions

How much stamp duty would I save under Reform's plan?

Use the calculator above with your purchase price and buyer type. Because Reform's 0% band reaches £750,000, most buyers would pay no stamp duty at all; the calculator shows your exact saving against today's rates.

What are Reform's proposed stamp duty rates?

0% on the price up to £750,000, 2% on the portion from £750,000 to £1.5m, and 4% on anything above £1.5m.

Is Reform's stamp duty cut government policy?

No — it's a Reform UK proposal, not law. Stamp duty land tax still applies at the current 2025/26 rates in England and Northern Ireland.

Would first-time buyers pay any stamp duty?

Under Reform's bands, no first-time buyer purchase below £750,000 would attract any stamp duty, which is more generous than today's first-time-buyer relief.