The Tax Most Buyers Forget to Budget For
Stamp Duty Land Tax is the single biggest cost most buyers don't think about until the solicitor emails the completion statement. Then it lands, and it's thousands — sometimes tens of thousands — of pounds that need to be found within days.
Better to know now.
The Rates (England and Northern Ireland, from April 2025)
Stamp duty is tiered. You only pay each rate on the portion of the price that falls in that band, not on the whole property price.
Standard rates (not a first-time buyer, replacing your main home):
First-time buyer rates (up to a £500,000 purchase price):
Above £500,000, first-time buyers pay the standard rates on the whole amount — the relief is lost.
Additional property surcharge: If the purchase is a second home or buy-to-let, add 5% on top of every band.
Worked Examples
Example 1: First-time buyer, £400,000 house
Example 2: Standard buyer, £400,000 house
Example 3: Buy-to-let investor, £300,000 flat
Scotland and Wales
Scotland uses Land and Buildings Transaction Tax (LBTT). Wales uses Land Transaction Tax (LTT). Different bands, same principle — tiered, higher for additional properties.
When and How to Pay
Stamp duty is due within 14 days of completion. Your solicitor usually handles this — they'll request the funds along with the purchase price, pay HMRC on your behalf, and file the return. Miss the deadline and there are interest charges and penalties.
Key Takeaway
Always budget for stamp duty as part of your deposit savings, not as an afterthought. For a £400,000 house as a standard buyer, that's £10,000 — on top of your 10% deposit, your solicitor fees, your survey, and your moving costs.
Our property reports include the exact current market context for a property, so you can budget stamp duty accurately before making an offer.