The 2026 stamp duty rates
From 1 April 2025, the standard nil-rate band returned to £125,000 (from £250,000) and the first-time buyer threshold dropped to £300,000 (from £425,000). The rates: 0% up to £125,000, 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5m, and 12% above £1.5m. First-time buyers pay 0% up to £300,000 and 5% on £300,001-£500,000. Above £500,000, first-time buyer relief is lost entirely.
A first-time buyer purchasing at £350,000 now pays £2,500 in stamp duty. Before April 2025, the same purchase was stamp duty free — a £2,500 increase that comes directly from the deposit.
The first-time buyer cliff edge at £300,000
Properties priced at exactly £300,000 or below attract zero stamp duty for first-time buyers. At £300,001, stamp duty kicks in at 5% on the amount above £300,000. At £305,000, that's £250. At £350,000, it's £2,500. At £500,000, it's £10,000. At £500,001, first-time buyer relief vanishes entirely and you pay standard rates — a jump from £10,000 to £12,500. This cliff edge creates pricing anomalies: properties just above £300,000 are effectively more expensive than their asking price suggests, because the stamp duty hits the buyer's available deposit.
Additional property surcharge
If you already own a residential property (including buy-to-let, inherited properties, or a home abroad), you pay an additional 5% on top of standard rates. This applies even if you're replacing your main residence but haven't yet sold the old one — though you can reclaim the surcharge if you sell within 3 years. On a £300,000 property, the surcharge adds £15,000. This is the single biggest cost that catches landlords and second-home buyers off guard.
The additional property surcharge increased from 3% to 5% in October 2024. Many online calculators still use the old 3% rate. Always check GOV.UK for current rates.
Legitimate ways to reduce your stamp duty
There are a limited number of legal ways to reduce your bill. First, negotiate the price: a £5,000 reduction on a £300,000 property saves £250 in stamp duty and £5,000 on the purchase price. Second, for first-time buyers, stay at or below £300,000 where possible — the savings are real. Third, if buying additional properties, consider whether completing the sale of your existing home first removes the surcharge. Fourth, transfer between spouses: transfers between married couples or civil partners are stamp duty exempt. There are no other legitimate reduction methods — be wary of any scheme that claims otherwise.
When you pay and how
Stamp duty must be paid within 14 days of completion. Your solicitor handles this — they deduct the amount from your completion funds and submit the return to HMRC on your behalf. If you're buying through a company, different rates apply (17% flat rate on residential property above £500,000 for corporate buyers). The 14-day deadline is strict — late payment incurs automatic penalties and interest.
Your solicitor will calculate the exact figure and include it in your completion statement. Always ask to see the stamp duty calculation before completion day — errors happen and are expensive to correct.