Do I pay stamp duty on a house under £125,000?
No SDLT is due on a standard residential purchase at £125,000 or under. The picture changes if you already own another home, the 5% additional-property surcharge applies on any purchase above £40,000.
Last reviewed 16 May 2026.
The standard nil-rate band
For a typical buyer, purchasing a single property as their main residence, the first £125,000 of any purchase is taxed at 0%. A property bought for £125,000 or less attracts no SDLT at all. A property bought for £125,001 strictly attracts 2% on the £1 above the threshold, which is £0.02, a number small enough that it rounds to zero on most calculators.
When the surcharge changes the answer
The additional-property surcharge changes this picture significantly. If you already own another residential property worth more than £40,000 anywhere in the world, the 5% surcharge applies to your new purchase from the first £1. The surcharge has its own threshold: it only applies if your new purchase is over £40,000.
Worked examples:
- £100,000, no other property: £0 SDLT
- £100,000, you already own another home: £5,000 (5% surcharge on the full price)
- £125,000, no other property: £0 SDLT
- £125,000, you already own another home: £6,250 (5% surcharge on the full price)
- £40,000 or under, any buyer: £0 SDLT, no surcharge applies
Non-UK resident buyers
The 2% non-UK resident surcharge applies to every band, including the nil-rate band. A non-resident buying a £100,000 home with no other property still pays £2,000 in SDLT.
Should I still file a return?
Yes, usually. The SDLT1 return is required even when no tax is due, for any chargeable transaction at £40,000 or above. Below £40,000 no return is needed. Your conveyancer files the return as standard practice on completion.