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Stamp Duty Land Tax is charged in slices: each rate applies only to the part of the price inside its band. At the time of writing, a home in England costing £250,000 pays £2,500 at the standard rates, nothing if the buyer qualifies for first-time buyer relief, and £15,000 if it is a second home or a buy-to-let. The return must be filed and the tax paid within 14 days of completion, and your conveyancer usually does both.
This guide is general information and not legal, tax or financial advice. Ask a conveyancer or an accountant to confirm what you will pay, particularly for a joint purchase, a mixed-use property or a purchase by a company.
The standard rates
These are the residential rates in England and Northern Ireland that have applied since 1 April 2025, as published on GOV.UK at the time of writing.
| Part of the price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
The rates apply to each slice. A buyer paying £300,000 does not pay 5% on the whole price, only on the £50,000 above £250,000.
First-time buyer relief
A first-time buyer pays less if the price is £500,000 or less.
| Part of the price | First-time buyer rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Price above £500,000 | No relief: the standard rates apply to the whole price |
To qualify you must never have owned a home, or a share of one, anywhere in the world, and you must intend to live in the property as your only or main residence. If two people buy together, both must qualify. Our guide to buying your first home in Bournemouth covers deposits and mortgages as well.
The surcharge on additional homes
If you will own more than one home at the end of the day you complete, a 5% surcharge is added to every band, including the first. It applies to second homes, holiday homes and buy-to-lets, and to properties costing £40,000 or more. The rates become:
| Part of the price | Rate with the surcharge |
|---|---|
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5 million | 15% |
| Above £1.5 million | 17% |
If you are replacing your main home but complete the purchase before you have sold the old one, you will usually pay the surcharge first. At the time of writing GOV.UK says you can claim it back if you sell or give away your previous main home within three years. Investors should read buy-to-let in Bournemouth for the wider costs.
Worked examples
The prices below are illustrations chosen to show the arithmetic. They are not local prices.
| Price | Standard buyer | First-time buyer | Additional home |
|---|---|---|---|
| £200,000 | £1,500 | £0 | £11,500 |
| £250,000 | £2,500 | £0 | £15,000 |
| £350,000 | £7,500 | £2,500 | £25,000 |
| £550,000 | £17,500 | £17,500 (no relief) | £45,000 |
How the £350,000 figures are built:
- Standard: 0% on £125,000, 2% on £125,000 (£2,500), 5% on £100,000 (£5,000). Total £7,500.
- First-time buyer: 0% on £300,000, 5% on £50,000. Total £2,500.
- Additional home: 5% on £125,000 (£6,250), 7% on £125,000 (£8,750), 10% on £100,000 (£10,000). Total £25,000.
At £550,000 the first-time buyer relief is lost entirely because the price is above £500,000, so a first-time buyer pays exactly what any other buyer pays.
When and how it is paid
At the time of writing GOV.UK says the return must be sent to HMRC and the tax paid within 14 days of completion. If a solicitor or conveyancer acts for you, they usually file the return and pay the tax on your behalf on completion day, using money you send them beforehand. Late filing brings penalties and interest.
Put stamp duty in your budget from the start, alongside the deposit, the conveyancer's fees, searches, the survey and the lender's fees. A mortgage does not usually cover it.
What counts as the price
Stamp duty is charged on the "chargeable consideration", normally the price you pay. Some points that change it:
- Fixtures are part of the price. Removable items such as curtains or a freestanding fridge can be bought separately, but only at a genuine value; overstating them to cut the tax is unlawful.
- A shared ownership purchase has its own rules for how the share is taxed.
- Taking over a mortgage as part of a transfer can count as payment.
- Buying several properties at once has its own rules too.
These are matters for your conveyancer.
Common mistakes
- Assuming relief applies to a joint purchase. If one buyer has owned a home before, anywhere in the world, first-time buyer relief is lost for both.
- Forgetting the surcharge when buying before selling. A buyer who completes on the new home before the old one is sold usually pays the surcharge first and claims it back later, so the money must be available on completion day.
- Treating the rates as a flat percentage. Each rate applies only to its slice of the price, which is why the totals in the table are lower than a single rate on the whole price would suggest.
- Budgeting for the old rates. The thresholds changed on 1 April 2025. Online calculators and older articles may still show the earlier bands.
- Leaving the tax out of the budget. A lender does not usually add stamp duty to the mortgage, so it comes from savings alongside the deposit and fees.
Selling and stamp duty
Stamp duty is a buyer's tax. Sellers in Bournemouth, Poole and Christchurch should still know the thresholds, because buyers price around them: a first-time buyer's budget is shaped by the £300,000 and £500,000 lines. Our property valuation takes that into account when we suggest an asking price.
Next steps
Read conveyancing explained for where the tax fits in the purchase, and buying a leasehold flat if you are looking at flats. Our buyers' hub has every buying guide in one place.
