When Do You Pay No Stamp Duty?

“No stamp duty” does not always mean “nothing to do.” You might owe £0 tax but still need to file an SDLT return depending on the transaction.

Here is when the bill is genuinely zero — and when it is not.

Standard purchases below £125,000

For a property that will be your only home, the nil-rate band covers the first £125,000. Buy at £120,000 or £100,000 and standard SDLT is £0.

Above £125,000, tax kicks in on the slice above the threshold — see stamp duty on £150,000 for how quickly it rises.

First-time buyers below £300,000

Qualifying first-time buyers pay nothing on the first £300,000 (for purchases up to £500,000 total). A £250,000 first home is £0 SDLT — compared with £2,500 for a repeat buyer.

Try the first-time buyer calculator.

Very low-value transactions

Purchases under £40,000 are generally not notifiable for SDLT at all. That matters in some northern markets and for certain garage or parking space purchases — confirm with your solicitor.

Replacing a main residence without surcharge

If you sell your old home on the same day you buy the new one, you may pay standard rates without the additional property surcharge — but the price still determines whether you hit the nil-rate band.

When SDLT is zero but you still file

HMRC requires an SDLT return for most notifiable transactions even when tax due is nil. Your conveyancer normally files as part of completion. Do not assume “no tax” means “no paperwork.”

When “zero” does not apply

These situations often still produce a bill:

• Buy-to-let or second home — surcharge from the first pound, no nil-rate band
• Non-UK resident — 2% surcharge even on cheap properties
• Price above thresholds — even first-time buyers pay 5% on the slice above £300,000

Scotland and Wales

Scotland’s LBTT nil-rate band starts at £145,000 for a main home. Wales’s LTT main rate threshold is £225,000 (with different bands above). Compare all three on our £250,000 comparison page.

Not the same as exempt transfers

Gifts, divorces, and some inheritances can transfer property without SDLT — but those are specific legal situations with their own rules. This guide covers purchases only.