What Is Stamp Duty and How Much Do You Pay?
Stamp Duty Land Tax (SDLT) is a tax paid when purchasing property or land in England and Northern Ireland. You must pay SDLT when buying a residential or commercial property above certain price thresholds.
The exact amount depends on the purchase price, whether you're a first-time buyer, buying your main home, or purchasing an additional property. such as a buy-to-let. The purpose of SDLT is to generate government revenue and help regulate the property market.
Below, we break down everything you need to know when buying a new home with Berkeley Group.
A Guide to Stamp Duty
In this guide, we’ll answer key questions about Stamp Duty, including:
- What is Stamp Duty?
- How much is Stamp Duty?
- Who pays Stamp Duty?
- When do you pay Stamp Duty?
What Is Stamp Duty?
Stamp Duty Land Tax (SDLT), more commonly known as Stamp Duty, is a government tax that must be paid when you buy a new home.
The amount is calculated as a percentage of the price you pay for your new home. However, this percentage can vary depending on the property price and the number of homes you already own.
For instance, if you already own a home and plan to buy a second, you can expect to pay an additional property surcharge on top of the residential Stamp Duty.
How Much Is Stamp Duty?
Stamp Duty rates vary depending on whether you’re a first-time buyer, purchasing your main residence, buying an additional property, or are a non UK resident.
Below are the current (2026) SDLT residential rates for main residence buyers. These have applied since 1 April 2025, when thresholds reverted to earlier levels. These figures do not consider the additional costs incurred for second-home buyers.
| Stamp Duty residential rates | |
| Property price | SDLT Rate |
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5 million | 10% |
| Over £1.5 million | 12% |
To find out exactly how much Stamp Duty you’ll be required to pay, you can use a Stamp Duty Calculator.
Who Pays Stamp Duty?
Stamp Duty Land Tax (SDLT) must be paid when the chargeable consideration for a property or land purchase exceeds the relevant SDLT threshold. You may need to pay SDLT when you:
- buy a freehold property
- buy a new or existing leasehold
- buy a property through a shared ownership scheme
- take on a mortgage or buy a share in a house
Stamp Duty is always the buyer’s responsibility. It is paid when buying a property or plot of land over a certain price threshold. This price threshold is subject to change, but current information can always be found through GOV.UK.
First-Time Buyer Stamp Duty Relief
If you're a first-time buyer, you don't have to worry about Stamp Duty unless you’re buying a home that's over £300,000. This is known as the first-time buyers’ relief.
The current rules (in effect since 1 April 2025) are:
- 0% on the first £300,000
- 5% on the portion from £300,001 to £500,000
- If the property costs over £500,000, no first-time buyer relief applies and standard rates are charged on the full price.
Stamp Duty for Non UK Residents (Additional 2% Surcharge)
If you are classed as a non UK resident for SDLT purposes, you must pay an additional 2% surcharge on top of all standard SDLT rates. This rule has applied since 1 April 2021 and remains in force for 2026.
You are considered non UK resident if you were not present in the UK for at least 183 days in the 12 months leading up to completion.
Buyers who become UK resident within 12 months after completion can apply for a refund of the 2% surcharge within 2 years of the purchase date.
When Do You Pay Stamp Duty?
For anyone buying a main residence, Stamp Duty is payable on the portion of the property price above £125,000 (new threshold from April 2025).
This is typically paid as a lump sum upon completion of the purchase. In England, Stamp Duty must be paid within 14 days of completion (the date when all contracts are signed and you receive the keys).
Find Your New Home With Berkeley Group
Here at Berkeley, we’re committed to helping your move go as smoothly as possible. Our customer commitment is of the highest level, with dedicated teams to help
support you from start to finish.
If you’re interested in buying with us, take a look at our new homes for sale in popular locations across the UK, including London, Oxfordshire, Surrey and many locations in between.
Find out more about Berkeley Group or contact us today.