On a home bought at the London average of about £554,000, a home mover pays £17,700 in stamp duty. First-time buyers pay nothing on the first £300,000 and 5% up to £500,000, but get no relief above £500,000. The rates were left unchanged in the Budget on 28 October 2026.
- 01Stamp duty rates in England
- 02First-time buyer relief
- 03Worked examples at London prices
- 04What the October 2026 Budget changed
- 05When it is paid
01Stamp duty rates in England
| Portion of the price | Standard rate | Additional property |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5 million | 10% | 15% |
| Above £1.5 million | 12% | 17% |
Stamp duty is charged in slices, like income tax: each rate applies only to the part of the price within that band. Buyers who are not UK resident pay a further 2% on top.
02First-time buyer relief
If everyone buying is a first-time buyer and the price is £500,000 or less, you pay 0% on the first £300,000 and 5% on the rest. Above £500,000 the relief disappears entirely and standard rates apply to the whole price. In London, where many homes sit just above that line, it can be worth negotiating hard around the £500,000 mark.
03Worked examples at London prices
| Price | First-time buyer | Home mover | Additional property |
|---|---|---|---|
| £450,000 | £7,500 | £12,500 | £35,000 |
| £500,000 | £10,000 | £15,000 | £40,000 |
| £554,000 | £17,700 | £17,700 | £45,400 |
| £750,000 | £27,500 | £27,500 | £65,000 |
| £1,000,000 | £43,750 | £43,750 | £93,750 |
| £2,000,000 | £153,750 | £153,750 | £253,750 |
UK-resident buyers of freehold or long-leasehold homes in England. Non-UK residents add 2% of the price.
04What the October 2026 Budget changed
- Stamp duty rates: unchanged.
- High Value Council Tax Surcharge: from April 2028, owners of homes in England worth £2 million or more will pay an annual charge on top of council tax, from £2,500 to £7,500 a year depending on value.
- Landlords: income tax on property income rises to 24%, 44% and 49% from April 2027.
05When it is paid
Your solicitor files the return and pays the tax within 14 days of completion, so it needs to be ready alongside your deposit. It cannot normally be added to the mortgage, which is why we build it into every budget we prepare.
Use our stamp duty calculator for an instant figure, including first-time buyer relief and the additional property surcharge.
Frequently asked questions
Do first-time buyers pay stamp duty in London?
Only on the part of the price between £300,000 and £500,000, at 5%. If the price is over £500,000, no relief applies and standard rates are charged on the whole amount.
Has stamp duty changed in the 2026 Budget?
No. The Budget on 28 October 2026 left the rates and first-time buyer relief unchanged.
Do I pay the 5% surcharge if I am replacing my main home?
Not if you sell your previous main home on or before completion. If you buy first and sell later, you pay the surcharge and can usually reclaim it if you sell within 36 months.
Can stamp duty be added to my mortgage?
Not directly. Some buyers borrow more against the property to fund it, but that reduces your equity and has to pass the lender's affordability checks.