Stamp Duty on £200,000 Property
SDLT calculation using official 2025/26 rates for England & Northern Ireland
SDLT Band Breakdown
| Band | Amount | Rate | Tax |
|---|---|---|---|
| £0.00 - £200,000 | £200,000 | 0% | £0.00 |
| Total SDLT | £0.00 |
First-Time Buyer Relief
If you are a first-time buyer purchasing a property for £200,000:
First-time buyer relief applies to properties up to £625,000. No stamp duty on the first £425,000.
Stamp Duty on £200,000 - At a Glance (2025/26)
- Standard SDLT
- £0
- First-Time Buyer SDLT
- £0
- FTB Saving
- £0
- Additional Property SDLT
- £10,000
- Effective SDLT Rate
- 0.00%
- Total Purchase Cost
- £200,000
Understanding Stamp Duty on £200,000
Purchasing a property for £200,000 in England or Northern Ireland in 2025/26 will incur £0 in Stamp Duty Land Tax (SDLT). This gives an effective SDLT rate of 0.00%, meaning the total purchase cost including stamp duty is £200,000.
First-time buyers benefit significantly at this price point. If you are buying your first home for £200,000, you pay absolutely no stamp duty - a saving of £0 compared to the standard rate. First-time buyer relief is available on properties up to £625,000, with no SDLT on the first £425,000.
The SDLT on £200,000 is calculated using a progressive band system, similar to income tax. The entire amount falls within the 0% band (up to £250,000), so no standard SDLT is due. A £200,000 property is close to the average house price in West Midlands, East Midlands, North West.
If this is an additional property (second home, buy-to-let), an extra 5% surcharge applies to the entire purchase price, bringing the total SDLT to £10,000. This surcharge was increased from 3% to 5% in the October 2024 Autumn Budget, significantly increasing the cost of additional property purchases.
Stamp Duty Tips for £200,000 Property Purchases
First-Time Buyer Relief
As a first-time buyer, you can save up to £0 in stamp duty on a £200,000 property. To qualify, neither you nor anyone you are buying with must have previously owned a property anywhere in the world. This includes inherited properties. The relief applies to the first £425,000 at 0%, then 5% up to £625,000.
Help to Buy ISA / Lifetime ISA
If you have been saving in a Lifetime ISA (LISA), you can use the 25% government bonus towards your deposit on properties up to £450,000. Combined with SDLT first-time buyer relief, this significantly reduces the upfront cost of buying your first home. Note that a LISA penalty of 25% applies if used for non-property purposes before age 60.
Shared Ownership Considerations
If purchasing through a shared ownership scheme, you have two SDLT options: pay on the full market value upfront (benefiting from FTB relief), or pay only on your share now and 'staircase' SDLT payments as you buy additional shares. For a £200,000 property at 50% ownership, the share price of £100,000 would be within the FTB nil-rate band.
Budget for All Purchase Costs
Beyond stamp duty of £0, budget for: solicitor/conveyancer fees (£1,000-£2,000), property survey (£400-£1,500 depending on type), mortgage arrangement fee (£0-£2,000), removal costs (£500-£1,500), and a contingency fund. The total additional costs on a £200,000 property typically range from £3,000 to £8,000.
What If? Scenarios for £200,000 Property
If You Negotiate £25,000 Off the Price...
Reducing the price to £175,000 would lower your SDLT from £0 to £0, saving you £0 in stamp duty alone. Combined with a lower mortgage amount, the total saving on interest over 25 years could exceed £37,500.
If This Is a Second Property...
Buying a £200,000 property as a second home or buy-to-let incurs the 5% additional property surcharge, adding £10,000 to your stamp duty bill. The total SDLT would be £10,000 - 5.0% of the property price. If you sell your previous main home within 36 months, you can claim back the surcharge.
First-Time Buyer vs Standard Buyer...
A first-time buyer purchasing this property for £200,000 would pay £0 in SDLT compared to £0 for a standard buyer - a saving of £0. This relief makes a significant difference and is automatically applied when you confirm FTB status to your solicitor.
Mortgage Affordability Context...
With a 10% deposit (£20,000), a £180,000 mortgage at 4.5% over 25 years would cost approximately £1,000 per month. Adding SDLT of £0, your total upfront costs (deposit + SDLT + estimated fees) would be around £23,000.
Frequently Asked Questions: Stamp Duty on £200,000
How much is stamp duty on a £200,000 property?
Stamp duty (SDLT) on a £200,000 property in England and Northern Ireland is £0 at standard rates for 2025/26. This represents an effective rate of 0.00% of the property price.
Do first-time buyers pay stamp duty on £200,000?
Yes, first-time buyers pay £0 on a £200,000 property - a saving of £0 compared to standard rates. FTB relief gives 0% on the first £425,000 and 5% up to £625,000.
What is the additional property stamp duty on £200,000?
If buying a £200,000 property as a second home or buy-to-let, the 5% additional property surcharge adds £10,000 to the standard SDLT, giving a total of £10,000. This surcharge was increased from 3% to 5% in October 2024.
When do I pay stamp duty on a £200,000 house?
SDLT of £0 must be paid within 14 days of completion (the day you legally become the owner). Your solicitor or conveyancer will usually handle the SDLT return and payment on your behalf, taking the amount from the completion funds.
Can I add stamp duty to my mortgage?
Most lenders do not allow you to add SDLT directly to your mortgage. The £0 stamp duty on a £200,000 property must typically be paid from your own funds at completion. However, some lenders may allow a slightly higher loan-to-value ratio that effectively covers the SDLT, subject to affordability checks.
Is stamp duty different in Scotland and Wales?
Yes. SDLT only applies in England and Northern Ireland. Scotland charges Land and Buildings Transaction Tax (LBTT) and Wales charges Land Transaction Tax (LTT), both with different rates and thresholds. On a £200,000 property, the tax amount may differ significantly depending on the country.
Compare Stamp Duty on Other Properties
Total Cost of Buying a £200,000 Property
Beyond the purchase price of £200,000, buying a home involves several additional costs that many buyers underestimate. The table below provides a realistic estimate of the total upfront expenditure you should budget for when purchasing at this price point in England or Northern Ireland during the 2025/26 tax year.
| Cost Item | Estimated Amount |
|---|---|
| Property Price | £200,000 |
| Stamp Duty (SDLT) | £0 |
| Solicitor / Conveyancer Fees | £1,500 |
| Property Survey (HomeBuyer Report) | £500 |
| Property Survey (Full Building Survey) | £1,200 |
| Mortgage Arrangement Fee | £1,000 |
| Removal Costs | £800 |
| Total Estimated Cost (with HomeBuyer Survey) | £203,800 |
| Total Estimated Cost (with Full Building Survey) | £204,500 |
When budgeting to buy a £200,000 property, it is essential to account for all the costs beyond the purchase price itself. The additional costs shown above range from £3,800 to £4,500, depending on the type of survey you choose. A HomeBuyer Report is suitable for most standard properties in reasonable condition, while a Full Building Survey is recommended for older properties, listed buildings, or properties where you plan significant renovation work. First-time buyers benefit from significant relief at this price point, paying no stamp duty at all on properties up to £425,000 — a saving of £0 compared to the standard rate. This effectively reduces your total upfront costs to between £203,800 and £204,500.
How We Calculate Stamp Duty
Our SDLT calculations use the official rates published by HMRC for England and Northern Ireland, effective from April 2025. We apply the progressive band system: 0% on the first £250,000, 5% on £250,001 to £925,000, 10% on £925,001 to £1,500,000, and 12% above £1,500,000. First-time buyer relief applies 0% up to £425,000 and 5% up to £625,000. The additional property surcharge is 5% of the full purchase price.
Last verified: February 2026 | Tax year: 2025/26 | Reviewed by: UK Calculator Editorial Team
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Understanding UK Stamp Duty Land Tax
Stamp Duty Land Tax (SDLT) is a tax levied by HMRC on property and land purchases in England and Northern Ireland. It applies whenever you buy a residential property above a certain price threshold, whether the purchase is made outright or with a mortgage. SDLT is not charged on transactions in Scotland or Wales, which have their own land transaction taxes. The tax is calculated on a progressive tiered basis — meaning different portions of the purchase price are taxed at different rates, much like income tax brackets.
SDLT must be paid on the completion date of your property purchase, and it is your legal obligation as the buyer to ensure it is filed and paid on time. In practice, your solicitor or conveyancer will handle the SDLT return and payment as part of the conveyancing process, deducting the amount from the funds available at completion. Failure to submit the return within the required timeframe can result in penalties and interest charges from HMRC.
Current SDLT Rate Bands (2025/26)
The following SDLT rates apply to residential property purchases in England and Northern Ireland from April 2025 onwards:
| Property Price Band | SDLT Rate |
|---|---|
| £0 – £250,000 | 0% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Above £1,500,000 | 12% |
These rates are applied progressively. For example, on a £300,000 property you would pay 0% on the first £250,000 and 5% on the remaining £50,000, giving a total SDLT of £2,500. This tiered system ensures that buyers of lower-value properties pay proportionally less tax than those purchasing at the higher end of the market.
First-Time Buyer Relief
First-time buyers in England and Northern Ireland benefit from generous SDLT relief designed to make homeownership more accessible. If you have never owned a property anywhere in the world, you can claim first-time buyer relief which offers the following rates:
- 0% on the first £425,000 of the property price
- 5% on the portion from £425,001 to £625,000
- Relief is not available on properties priced above £625,000 — the standard rates apply to the entire purchase
To qualify, the property must be your only or main residence and you (and anyone you are buying with) must never have owned a freehold or leasehold interest in a property in the UK or abroad. This relief can save first-time buyers up to £6,250 compared to the standard rates, making it one of the most valuable tax benefits available to new homeowners.
Additional Property Surcharge
If you are purchasing a second home, holiday home, or buy-to-let investment property, an additional SDLT surcharge of 5% applies on top of the standard rates. This surcharge applies to the entire purchase price from the first pound. The surcharge was increased from 3% to 5% in the October 2024 Autumn Budget, representing a significant increase in the cost of acquiring additional residential properties. For example, on a £300,000 buy-to-let purchase, the surcharge alone would be £15,000 on top of the standard SDLT of £2,500, giving a combined total of £17,500.
There are some exceptions: the surcharge does not apply if you are replacing your main residence (provided you sell your previous home within 36 months), and it does not apply to caravans, mobile homes, or houseboats.
Scotland and Wales
SDLT applies only in England and Northern Ireland. If you are buying property in Scotland, you will pay Land and Buildings Transaction Tax (LBTT) instead, which has different rate bands and thresholds set by Revenue Scotland. In Wales, the equivalent tax is Land Transaction Tax (LTT), administered by the Welsh Revenue Authority. Both LBTT and LTT have their own nil-rate bands, rate structures, and surcharges for additional properties, so it is important to use the correct calculator for the country in which the property is located.
Key Deadlines and Filing
You must file an SDLT return and pay the tax due within 14 days of the completion date of your property purchase. This applies even if no tax is due (for example, if the property is below the nil-rate threshold, you may still need to file a return). Late filing can incur an automatic £100 penalty, with further penalties for continued delays. Your solicitor or licensed conveyancer will normally submit the SDLT return electronically on your behalf as part of the completion process, so ensure you provide them with accurate information about your buyer status (first-time buyer, additional property, etc.) well before your completion date.
Frequently Asked Questions About SDLT
When was stamp duty last changed?
The most recent changes to SDLT came in the October 2024 Autumn Budget, which increased the additional property surcharge from 3% to 5% with immediate effect. Additionally, from April 2025 the temporary nil-rate threshold of £250,000 (which had been in place since September 2022) was made permanent, while the first-time buyer nil-rate threshold was confirmed at £425,000 with the relief available on properties up to £625,000. These changes were part of the government’s broader fiscal policy measures aimed at addressing housing market affordability and increasing tax revenue from property transactions.
Can I avoid paying stamp duty?
While SDLT cannot be “avoided” through evasion, there are several legitimate ways to reduce or eliminate your liability. First-time buyer relief removes the tax entirely on properties up to £425,000. Transfers between spouses or civil partners during a marriage or civil partnership are exempt from SDLT. Properties purchased below the nil-rate threshold (£250,000 for standard buyers) incur no SDLT. Certain transactions by charities, community amateur sports clubs, and registered social landlords may also qualify for relief or exemption. It is always advisable to consult a qualified tax professional or conveyancer to ensure you claim all reliefs to which you are entitled.
Do I pay stamp duty on a new build?
Yes, the same SDLT rates apply to new-build properties as to existing homes. Whether you are buying a brand-new house from a developer or a resale property, the tax calculation is identical based on the purchase price. Some property developers offer “stamp duty paid” promotions as a sales incentive, but in these cases the SDLT liability remains the same — the developer simply absorbs the cost rather than passing it on to the buyer. It is worth noting that HMRC may scrutinise transactions where incentives are offered to ensure the declared purchase price accurately reflects the true consideration paid.