Stamp Duty Land Tax is calculated in bands, and the amount depends on both the purchase and the buyer's circumstances. Budget for it before making an offer. The examples below use the HMRC residential rates checked on 26 October 2026 for property in England.
Understand the standard bands
For a purchase subject to the standard residential rates, the first £125,000 is charged at 0%, the next £125,000 at 2%, and the portion from £250,001 to £925,000 at 5%. Higher bands apply above that level.
Eligible first time buyers purchasing their main residence pay no SDLT on the first £300,000 and 5% on the portion up to £500,000. Relief is unavailable if the price exceeds £500,000. All joint purchasers must qualify. Additional dwelling purchases generally attract an extra five percentage points, subject to the detailed rules.
Worked examples for a £450000 home
The calculations below are illustrative and assume no other reliefs, surcharges or special rules apply.
| Buyer position | Calculation | SDLT |
|---|---|---|
| Standard residential rates | £125,000 at 0%, £125,000 at 2%, £200,000 at 5% | £12,500 |
| Eligible first time buyers | £300,000 at 0%, £150,000 at 5% | £7,500 |
| Higher additional dwelling rates | Standard £12,500 plus 5% of £450,000 | £35,000 |
The additional dwelling example uses 5%, 7% and 10% across the relevant bands. It does not mean every buyer who already owns a property will pay that amount; replacing a main residence requires a separate assessment.
The £500000 first time buyer threshold
For eligible buyers paying exactly £500,000, the example tax is £10,000. At £510,000, first time buyer relief is unavailable and standard rates would produce £15,500, assuming those rates apply.
That difference matters when deciding how far to increase an offer. Compare the total cash needed at each proposed price, including the effect on your deposit and other buying costs. A small increase in price can have a larger effect on the funds needed to complete.
Give your conveyancer the complete ownership picture
Explain whether you or a joint buyer have owned property before, hold an interest in another home or are selling a main residence. Include overseas property interests and relevant trust arrangements rather than deciding yourself that they do not count.
Company purchases, non UK residence and unusual transactions can require different treatment. Ask your conveyancer or tax adviser to confirm the calculation for the actual transaction and completion date.
Common questions
Is stamp duty charged at one rate on the whole price? Standard residential SDLT uses bands. Different portions of the price can therefore be taxed at different rates.
Can I put stamp duty into my deposit budget? Treat it as a separate cost when planning. Using money reserved for tax as deposit money could leave a shortfall at completion.
Preparing to buy in Harrow or Stanmore? Contact Nivas Estates to discuss your property search, and ask your conveyancer to confirm the tax position before committing.
Related reading
- First time buyer guide to buying a home in Harrow and Stanmore
- How to make an offer on a house in Harrow
- Buy to let rental yield and cash flow explained
Sources
Information checked on 26 October 2026. General information for England; obtain advice for your circumstances.