Stamp duty confuses because people imagine one rate applied to the whole price. It has worked in slices — like income tax — since 2014, and the difference matters by thousands.
The English Bands (SDLT)
0% to £125,000 · 2% to £250,000 · 5% to £925,000 · 10% to £1.5m · 12% above. A £400,000 purchase pays 0 + £2,500 + £7,500 = £10,000 — an effective rate of just 2.5%, nothing like the scary 5% headline band.
First-Time Buyer Relief
No SDLT up to £300,000 and 5% only on the slice to £500,000 — above £500,000 the relief vanishes completely. Both joint buyers must qualify, and owning any property anywhere in the world before (including inherited) disqualifies you.
The Additional Property Surcharge
Second homes and buy-to-lets add 5% to every band in England. Replacing your main residence but completing before selling the old one? You pay the surcharge upfront and reclaim it if the old home sells within 36 months.
Scotland and Wales Are Different Countries (For This)
Scotland charges LBTT: bands bite earlier, first-time relief is smaller, and the additional dwelling supplement is a hefty 8% of the full price. Wales charges LTT: a generous £225,000 nil band, no first-time relief at all, and the UK’s highest top surcharge rates. Never quote English figures across the borders.