Stamp duty, formally Stamp Duty Land Tax, is a tax paid when buying property or land in England and Northern Ireland above a price threshold. It is charged in bands, with higher rates applied only to the portion of the price within each band.
In one line: Stamp duty is a banded tax on property purchases in England and Northern Ireland above a set threshold.
How stamp duty works
For purchases from April 2025, the standard residential nil rate band is the first 125,000 GBP, then 2% to 250,000 GBP, 5% to 925,000 GBP and higher rates above (GOV.UK, 2026-27). Only the slice within each band is taxed at that band's rate.
On a 300,000 GBP home as a standard buyer, no tax applies to the first 125,000 GBP, 2% on the next 125,000 GBP is 2,500 GBP, and 5% on the final 50,000 GBP is 2,500 GBP, totalling 5,000 GBP.
First-time buyers pay nothing up to 300,000 GBP and 5% on the portion from 300,001 GBP to 500,000 GBP (GOV.UK, 2026-27).
Stamp duty vs LBTT
Stamp Duty Land Tax applies in England and Northern Ireland. Scotland charges Land and Buildings Transaction Tax (LBTT) instead, and Wales charges Land Transaction Tax, each with its own bands.
All three are banded, so only the part of the price within each band is taxed at that rate.
Primary source: GOV.UK: Stamp Duty Land Tax