Last updated: August 2026. This guide replaces our original 2020 article, which covered the temporary ‘stamp duty holiday’ – that scheme has long since ended, and the rates below are the ones that apply today.
If you are budgeting for a house move, stamp duty is one of the costs that catches buyers out most often. Here is what it is, how much you will pay in 2026, and the reliefs and surcharges that could change your bill – with worked examples based on real Merseyside prices.
What is stamp duty?
Stamp Duty Land Tax (SDLT) is a tax you pay to HM Revenue & Customs when you buy a property or land over a certain price in England or Northern Ireland. For most home buyers, it applies to the purchase of your main home once the price passes £125,000, with the amount due based on the portion of the price that falls into each band, not the whole price at one rate.
Scotland and Wales have their own versions with different names, bands and rates: Land and Buildings Transaction Tax (LBTT) in Scotland and Land Transaction Tax (LTT) in Wales. If your move takes you over the border, check the relevant rates before you budget.
How much is stamp duty in 2026?
These are the current rates for a single residential property in England and Northern Ireland, in place since 1 April 2025 and unchanged by the Autumn Budget in November 2025:
| Portion of the property price | Stamp duty rate |
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
Because the tax is banded, you only pay each rate on the slice of the price inside that band. You can check any figure with HMRC’s stamp duty calculator, or see the full guidance on GOV.UK.
What will a typical Liverpool buyer pay?
The average house price in Liverpool was £185,000 in May 2026 (ONS, provisional) – so a typical local buyer moving home pays far less than the headline figures you see in the national press:
| Purchase price | Stamp duty | How it’s worked out |
| £185,000 (Liverpool average) | £1,200 | 0% on £125,000, then 2% on £60,000 |
| £300,000 | £5,000 | 0% on £125,000, 2% on £125,000 (£2,500), 5% on £50,000 (£2,500) |
| £400,000 | £10,000 | 0% on £125,000, 2% on £125,000 (£2,500), 5% on £150,000 (£7,500) |
Budgeting tip: stamp duty is due shortly after completion and cannot normally be added to your mortgage, so set the money aside alongside your deposit, legal fees and removal costs.
First-time buyers pay less – or nothing at all
If you (and anyone you are buying with) have never owned a property before, first-time buyer relief applies:
- No stamp duty on the first £300,000 of the price
- 5% on the portion from £300,001 to £500,000
- No relief at all if the property costs more than £500,000 – standard rates apply to the whole purchase
At Liverpool’s average price of £185,000, a first-time buyer pays nothing. Even at £400,000, relief cuts the bill from £10,000 to £5,000.
Buying a second home or buy-to-let? Expect a surcharge
If the purchase means you will own more than one residential property, a 5% surcharge is added on top of the standard rates – across the whole price, not just the part above £125,000. A £200,000 second home, for example, attracts £11,500 in stamp duty rather than the £1,500 a home mover would pay.
There is an important exception: if you are replacing your main residence, the surcharge does not apply, and if you end up paying it because your old home has not yet sold, you can claim it back provided you sell within 36 months. If a gap between completion dates is forcing your hand, short-term storage between moves is often far cheaper than an overlapping purchase.
Non-UK residents (broadly, buyers who have spent fewer than 183 days in the UK in the 12 months before purchase) pay a further 2% surcharge on top of whichever rates apply.
When and how do you pay?
A stamp duty return must be filed and the tax paid within 14 days of completion. In practice your solicitor or conveyancer almost always handles this for you, collecting the money as part of your completion statement, but the legal responsibility sits with you, so make sure it is covered. While you are ticking off post-move admin, our guide to who to inform when moving house covers the rest of the list.
Whatever happened to the stamp duty holiday?
The ‘holiday’ that prompted the original version of this article was a temporary measure during 2020–21, when no stamp duty was charged on the first £500,000 (stepping down to £250,000 for its final three months). It ended in September 2021. A later temporary threshold of £250,000 (with first-time buyer relief up to £425,000) ran from September 2022 until 31 March 2025, when the bands reverted to the current figures above. If you last bought a home during either of those windows, expect your next bill to be noticeably higher for the same price of property.
Will stamp duty change again?
Despite widespread speculation beforehand, the Autumn Budget in November 2025 made no changes to residential stamp duty rates. It did announce a separate annual council tax surcharge on homes worth over £2 million from April 2028, sometimes reported as a ‘mansion tax’, but that is not a stamp duty change and will not affect a typical Merseyside purchase. Rates in this guide are correct as of August 2026; always check GOV.UK or ask your conveyancer before exchange.
Stamp duty FAQs
Do first-time buyers pay stamp duty?
Not on the first £300,000. Between £300,001 and £500,000 they pay 5% on that portion only. Above £500,000 the relief disappears entirely and standard rates apply.
How much stamp duty will I pay on a £200,000 home?
If it is your only home, £1,500 – nothing on the first £125,000, then 2% on the remaining £75,000. First-time buyers pay nothing at this price.
Do I pay stamp duty when I sell my house?
No. Stamp duty is paid by the buyer, not the seller. Your costs as a seller are estate agency and legal fees – plus the stamp duty on whatever you buy next.
Is stamp duty the same in Scotland and Wales?
No. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax, each with different bands and rates. The figures in this guide apply to England and Northern Ireland.
When does stamp duty have to be paid?
Within 14 days of completion. Your solicitor or conveyancer normally files the return and pays HMRC on your behalf as part of the completion process.
Planning a move across Liverpool or Merseyside?
Once the tax is budgeted for, let us take care of the move itself. Britannia Fleet has been moving families across Liverpool and Merseyside for over 50 years, with house removals, secure storage and full packing services all under one roof. Book a free home survey for an accurate fixed quote, or request your quote online in a couple of minutes. Prefer to talk? Call us on 0151 482 0432.
