Stamp Duty Guide: Everything You Need to Know About the Current Stamp Duty Rates

Residential property in Belgravia, Mayfair, Knightsbridge and Kensington continues to be sought after. However, a luxury home in one of London’s golden postcodes comes with a hefty price tag. Average property prices* in Kensington are just over £2.5 million, while Belgravia and Knightsbridge selling prices surpass £2.49 million. If your sights are set on a Mayfair home, the average price is just over £2.57 million. The current stamp duty rates will result in a substantial bill when purchasing a prime London property.   

So, what is stamp duty and how much are top-end London buyers expected to pay? Whether you’re moving house, buying a home for the first time or looking to purchase a second property, read on for our complete guide to stamp duty costs. 

What Is Stamp Duty? 

When you buy a property or land, there are usually stamp duty costs, known as Stamp Duty Land Tax (SDLT) in England and Northern Ireland. SDLT is slightly different in Scotland and Wales. The equivalent payment is Land and Buildings Transaction Tax (LBTT) in Scotland and Land Transaction Tax (LTT) on property purchases in Wales. 

Current Stamp Duty Rates (as of January 2026) 

The standard rate of stamp duty applies when buying a new primary residence worth more than £125,000 but you may face a surcharge if it’s a second property or you are an overseas buyer. Most first-time buyers can claim relief on properties up to £300,000, with a 5% charge on the portion from £300,001 to £500,000. You can work out your stamp duty costs using this HMRC Stamp Duty Calculator. 

Property Value Band	Rate
Up to £125,000	0%
£125,001 – £250,000	2%
£250,001 – £925,000	5%
£925,001 – £1,500,000	10%
Over £1,500,000	12%

How Much Stamp Duty Will I Pay? 

Stamp duty is set in bands, with charges set at a percentage for each portion of the property price. The Government in England last imposed a stamp duty increase on 1^st April 2025. Under current stamp duty rates, you will pay no stamp duty on properties costing less than £125,000, unless you attract a surcharge. The table below shows the current stamp duty rates that apply if your purchase will be your only residential property. 

Rightmove puts the average price of properties in Eaton Square, Belgravia, at £4,698,200. If you purchase a property for this amount as your only residence, you will attract the following bill using current stamp duty rates: 

Property Value Band	Rate	Example Tax Due
First £125,000	0%	£0
£125,001 – £250,000	2%	£2,500
£250,001 – £925,000	5%	£33,750
£925,001 – £1,500,000	10%	£57,500
Over £1,500,000	12%	£383,784
Total SDLT		£477,534

An excellent way to estimate your bill is to use an online stamp duty calculator – you can find one on the gov.uk website or use a comprehensive stamp duty calculator like this to work out costs in nations across the UK. 

First Time Buyer Stamp Duty Costs 

You will qualify for first time buyer relief in England and Northern Ireland if you have never owned a property before. If purchasing with someone else, neither of you must have owned a home before to qualify for first time buyer relief. A property bought for less than £300,000 will have no stamp duty bill. If the property is worth more than £300,000, no tax will apply to the first £300,000 but 5% will apply to the portion from £300,001 to £500,000. There is no first-time buyer stamp duty relief on the value of any property that exceeds £500,000. 

Stamp Duty Rates On Second Homes 

Stamp duty costs are higher for buy-to-let investors and second homeowners – also known as those purchasing ‘additional properties’.  

If you were buying a property in Eaton Square, Belgravia (purchase price of £4,698,200) as a second home or a buy-to-let investment, stamp duty costs would be: 

Property Value Band	Rate	Tax Due
First £125,000	5%	£6,250
£125,001 – £250,000	7%	£8,750
£250,001 – £925,000	10%	£67,500
£925,001 – £1,500,000	15%	£86,250
Over £1,500,000	17%	£543,694
Total SDLT		£712,444

The HMRC Stamp Duty Calculator can generate SDLT estimates for additional properties by asking specific questions about your purchase. 

If you decide to buy a new home before selling your old one, you will still have to pay the additional property rate. However, you may be able to get a refund if you sell the original main residence within 36 months. 

The refund will only apply to the 5% surcharge due on second home purchases. To claim a refund on the additional stamp duty, visit gov.uk using your Government Gateway login. 

Stamp Duty For Overseas Buyers (Non-UK Residents) 

Current stamp duty rates for non-UK residents stand at a 2% stamp duty surcharge on top of the usual rate for purchasing a residential property. A buyer is a UK resident if they have spent 183 days or more in the UK over 365 consecutive days, beginning 12 months before the transaction and ending 12 months after. 

If you are an overseas buyer, the stamp duty surcharge applies to the standard rate if you’ve owned a home previously or the first-time buyer rate if you qualify. Bear in mind that HMRC takes international properties into account when deciding your buyer status. If you own a residence in the UK or abroad, you will pay the 5% additional property surcharge and the 2% non-UK resident surcharge. 

When Are Stamp Duty Costs Not Payable?

There are some circumstances when stamp duty is not payable. 

• If the property is given as a gift with no money or other payment changing hands 
• If the property is being transferred to your ex-spouse or partner in the event of a divorce or separation
• If the property is left to you in a will 

Can I Reduce The Stamp Duty I Pay? 

You can reduce stamp duty costs by ensuring your offer sits within a lower band or factoring in the cost of moveable goods you purchase from the vendor. If the selling price is only just within a higher stamp duty band, ask the seller or estate agent if they would accept a slightly lower price. 

In certain transactions, you may also be able to deduct the cost of moveable assets from the selling price. Occasionally, a vendor may offer to sell curtains, white goods or furniture such as sofas or wardrobes to avoid disposal costs or shipping to a new address. If you are in this situation, remember that you may be eligible for a deduction and speak to your conveyancing solicitor for advice. But don’t give in to temptation and exaggerate the cost, as HMRC can investigate – with serious consequences. 

Want to learn more about the property market? Find out what time of year is best to sell a house in central London and discover the most expensive areas in London.

Can I Add Stamp Duty To My Mortgage? 

Adding stamp duty costs to your mortgage is possible but you may worsen your loan-to-value ratio (LTV), limiting you to less competitive interest rates. You’ll also spend more in the long run as interest will be added to your stamp duty costs.  

How To Pay Stamp Duty Land Tax 

You have 14 days from completion to file your SDLT return and pay. If you don’t pay in time, HMRC may issue a fine. 

In most cases, the solicitor carrying out your conveyancing will file the return, pay the tax on your behalf at completion and add the amount to their fees. However, you must make sure you pay stamp duty. 

Common Questions About Stamp Duty  

What are current UK stamp duty rates in the UK?  

Governments are known to change stamp duty costs on a frequent basis so check with official sources to see if new stamp duty rules have been introduced recently.  

• Current stamp duty costs in England are listed here 
• Current stamp duty costs in Scotland are listed here 
• Current stamp duty costs in Wales are listed here 

How do I calculate stamp duty?  

Different rates apply to property in England and Northern Ireland, compared to Scotland and Wales. For the latest stamp duty England costs, visit this Government calculator. Land and Buildings Transaction Tax (LBTT) applies in Scotland, and the stamp duty costs can be worked out here. Stamp duty costs are known as Land Transaction Tax in Wales and can be calculated here. 

How much is stamp duty on a 300k house in the UK?  

The cost will depend on where you are buying in the UK and your purchaser status. For example, a first-time buyer stamp duty bill in England will differ from the bill received by a landlord buying in Wales. As a broad snapshot, a purchaser who has already owned a property in England and who is buying a property for £300,000 as an owner-occupier will pay £5,000 stamp duty costs. A property bought in England for the same value but as an additional property would attract a stamp duty bill of £20,000. If a first-time buyer in England bought the same property, their stamp duty costs would be zero. 

Do first time buyers pay stamp duty in London?  

This depends on the value of the property purchased. There are special stamp duty rates for first time buyers but there is no special treatment if buying in London. First time buyer stamp duty costs when buying in London or elsewhere in England are: 

Property Value Band	Rate
First £300,000	0%
£300,001 – £500,000	5%
Over £500,000	No relief available

Can I claim stamp duty back if my house purchase falls through?  

Stamp duty costs are due for payment to HMRC up to 14 days after the ‘effective’ transaction date, which is usually the completion date. It is common, however, for the buyers’ solicitor to collect the stamp duty amount from the buyer before completion takes place. If the transaction falls through before completion, the solicitor should refund the stamp duty costs.  

Stamp duty refunds are also common when someone buys a new main residence before selling their current home, thus pushing them into the higher ‘additional property’ tax bracket. 

How does stamp duty work when buying a leasehold flat?  

There is a different calculation for stamp duty costs when selling a leasehold property, which takes into account the duration of the lease. This Government web page is dedicated to leasehold stamp duty costs. 

Can I reduce stamp duty by buying through a company?  

It could end up costing you more in stamp duty to buy a residential property using a corporate body. This Government web page provides more detail. 

Is stamp duty payable on a gifted property?  

If you have been gifted a property, the Government says you won’t have to pay stamp duty costs as long as there is no outstanding mortgage. The details of this agreement can be found here. 

If you are planning on buying a property in Pimlico, Westminster, Victoria, or in another prime central London location, contact Best Gapp today. We can introduce you to homes currently on the market and advise on current stamp duty rates.