Figures and rules read 22 October 2026

What Is Stamp Duty?

A tax on buying property, charged by the government of the nation the property is in — which is why the UK has three versions of the same idea.

It is charged on slices, not the whole price

Every UK property tax here is marginal: each band charges only the part of the price that falls inside it. On a £500,000 SDLT purchase, nothing is paid on the first £125,000, 2% on the next £125,000 and 5% on the rest — £15,000, not 5% of £500,000. That single mechanic explains why the "rate" you hear quoted is never the rate you actually pay.

Three taxes, one idea

From 1 April 2018 property tax in Wales is LTT; Scotland has had LBTT since 2015; England and Northern Ireland still use SDLT. The rates and thresholds differ, the structure is the same.

Who pays it and when

The buyer pays, usually through their solicitor or conveyancer, and the return and payment are due within 14 days of the effective date — normally completion. The tax follows the property, not your address: buy in Scotland and you pay LBTT whatever your nationality.

What it is not

It is not council tax, it is not a fee to the solicitor, and it is not reclaimable just because the purchase falls through later — the refund rules are specific.

Where to go next

Rules read from GOV.UK, Revenue Scotland and GOV.WALES on 22 October 2026. General information only — not legal or tax advice.