Short answer: when you buy a home in England or Northern Ireland you may pay Stamp Duty Land Tax (SDLT) on the price of the new property, Scotland charges Land and Buildings Transaction Tax (LBTT), and Wales charges Land Transaction Tax (LTT). Downsizers usually pay less because the new home is cheaper, but there is no general downsizer discount in England, and buying before you sell can trigger an extra charge. Always check current rates. This is general information, not tax advice.
Which tax applies where
- England and Northern Ireland: Stamp Duty Land Tax.
- Scotland: Land and Buildings Transaction Tax.
- Wales: Land Transaction Tax.
Tax is paid on the property you buy, not the one you sell. GOV.UK publishes the current residential property rates, which change from time to time, so check them rather than relying on a figure from a guide.
Worked examples for England
These examples use the standard residential rates for a single property in England shown on GOV.UK on 13 October 2026: 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% above that. Tax is charged band by band, not on the whole price at one rate.
| Price of the home you buy | Stamp Duty Land Tax | With 5% additional-property surcharge |
|---|---|---|
| £200,000 | £1,500 | £11,500 |
| £250,000 | £2,500 | £15,000 |
| £300,000 | £5,000 | £20,000 |
| £350,000 | £7,500 | £25,000 |
| £400,000 | £10,000 | £30,000 |
| £500,000 | £15,000 | £40,000 |
How to read the £300,000 row: nothing on the first £125,000, 2% of the next £125,000 (£2,500) and 5% of the last £50,000 (£2,500), which makes £5,000. The surcharge column applies only if you end the day of completion owning more than one residential property. It does not apply if you are replacing your main residence and sell the previous one within 36 months of completing the new purchase, so it can be reclaimed in that case.
These figures are for England only and exclude first-time buyer relief, the non-UK resident surcharge and leasehold rules. They are examples, not a quote. Rates change, so confirm them on GOV.UK or with your solicitor before you rely on them.
Buying before you have sold
If you buy a new home while still owning your old one, an extra charge for additional properties can apply. GOV.UK explains the rules in buying an additional residential property, including how it can be reclaimed when you sell your previous main home within a set time. Scotland and Wales have their own equivalent additional-property rules, with their own time limits.
If you are timing a sale and a purchase, tell your solicitor early so they can plan around this.
Other costs to budget for
Stamp duty is only one cost. Estate agent and solicitor fees and removals all add up, so see our guide to what to budget for when moving house and how much an elderly move costs.
Where Chayce fits
Chayce coordinates the practical side of a later-life move and liaises with your estate agent and solicitor so that dates stay in step. We are not tax advisers. For the tax itself, speak to your solicitor or an adviser. Read our downsizing guide, or get in touch.
Sources
- GOV.UK: Stamp Duty Land Tax
- GOV.UK: Residential property rates
- GOV.UK: Buying an additional residential property
- Revenue Scotland: Land and Buildings Transaction Tax
Rates, thresholds and rules change. This article is general information, not tax or legal advice.
