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Is it worth moving house when you have to pay stamp duty?

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UKUpdated 6 October 2026 · Written by BuyMeWhiskey Editorial Team · How we check facts

Moving can still be worth it if the new home meets needs that improving your current one can't, but work out the exact stamp duty first. On a £450,000 home it's £12,500 if it will be your only property, so weigh that and the other moving costs against what you gain.

Enter your target price into HMRC's official Stamp Duty Land Tax calculator before you make an offer.

Open HMRC's stamp duty calculator

How stamp duty is worked out

In England and Northern Ireland you pay Stamp Duty Land Tax (SDLT) in slices, a bit like income tax. If the home you're buying will be the only residential property you own, the current rates are:

0% on the first £125,000
2% on the next £125,000 (£125,001 to £250,000)
5% on the next £675,000 (£250,001 to £925,000)
10% on the next £575,000 (£925,001 to £1.5 million)
12% on anything above £1.5 million

First-time buyers pay nothing up to £300,000 and 5% on the portion from £300,001 to £500,000, but only if the price is £500,000 or less. Above that, the relief disappears completely. Scotland has Land and Buildings Transaction Tax and Wales has Land Transaction Tax, each with its own rates.

Is it worth the move? Put stamp duty alongside everything else

Stamp duty is often the biggest single cost of moving up, but it isn't the only one. GOV.UK's guide to selling lists estate agent fees, an Energy Performance Certificate (unless you already have a valid one), legal fees, Land Registry fees and removals. You may also have costs on your mortgage, so check for early repayment charges and whether you can take your deal with you. Add these up and compare the total with what you'd get from the move: more space, a better location or a shorter commute, for the years you expect to stay.

The alternative is often improving the home you have. Some extensions don't need full planning permission, which is worth checking before you decide (see related links). But building work brings its own costs and disruption, and some needs can't be met by extending, such as a different school catchment or being closer to family.

Should you wait?

How much SDLT you pay depends on the rules in force when you buy, and they have changed several times. Nobody can reliably predict the next change, so it's usually better to decide on your circumstances than to try to time the tax. If you're a first-time buyer close to £500,000, the relief cliff matters more than any rumour.

Practical points

Use HMRC's calculator on the exact price before you make an offer.
Buying before you've sold? You'll usually pay an extra 5% on top of each rate because you briefly own two homes. If the new home replaces your main residence and you sell the old one within 36 months, you can claim a refund of the extra.
Payment is due within 14 days of completion. Your solicitor or conveyancer usually files the return and pays on the day of completion, then adds it to their bill. Late filing or payment can bring penalties and interest.

SDLT on a main home (England and NI, not a first-time buyer)

Worked example

The Patel family are moving from a £300,000 house to a £450,000 one in England. They'll sell first, so the new house will be the only home they own.

0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the remaining £200,000 (£450,000 − £250,000) = £10,000
Total SDLT: £12,500, which is 12,500 ÷ 450,000 = about 2.8% of the price.

On top of that, the Land Registry fee to register a £450,000 transfer online is £150 (it's in the £200,001 to £500,000 band). Their solicitor will add legal fees, and there are agent, EPC and removal costs on the sale side.

If their completions slipped and they bought before selling, the higher rates would add 5% on every slice: 5% × £450,000 = £22,500 extra, or £35,000 in total. That's refundable if they sell the old house within 36 months, but it still has to be found on completion day.

The first-time buyer cliff: a first-time buyer paying £500,000 pays 5% × £200,000 = £10,000. At £510,000 the relief is lost and the normal rates apply: £2,500 + 5% × £260,000 = £15,500. That's £5,500 more tax for £10,000 more price.

How much stamp duty will I pay when I move house?#

In England and Northern Ireland, if the new home will be your only property, you pay 0% up to £125,000, 2% on the next £125,000, 5% up to £925,000, 10% up to £1.5 million and 12% above that. On a £450,000 home that's £12,500. Use HMRC's calculator for your exact price.

Do first-time buyers pay stamp duty?#

Only above £300,000. First-time buyers pay nothing up to £300,000 and 5% on the part from £300,001 to £500,000. If the price is over £500,000 the relief isn't available at all, and everyone buying must be a first-time buyer.

Is it worth paying stamp duty to move, or should I extend instead?#

Add up every cost of moving: stamp duty, agent and legal fees, Land Registry, EPC, removals and any mortgage charges. Compare that with the cost and disruption of extending. Extending can be cheaper, but it can't change your location, schools or commute.

Should I wait to move in case stamp duty changes?#

The tax depends on the rules when you buy, and nobody can reliably predict future changes. Waiting can cost you in other ways, such as prices, mortgage rates or simply living in the wrong home. Decide on your circumstances and check the current GOV.UK rates when you're ready.

Do I pay the extra 5% stamp duty if I buy before I sell?#

Usually yes, because you'll own two homes on completion day. If the new home replaces your main residence and you sell the old one within 36 months, you can claim the extra back. Budget for it up front.

When do I have to pay stamp duty?#

The SDLT return and payment are due within 14 days of completion. Your solicitor or conveyancer normally handles both on completion day and adds the tax to their bill. Late payment can mean penalties and interest.

Is stamp duty the same in Scotland and Wales?#

No. SDLT applies in England and Northern Ireland. Scotland has Land and Buildings Transaction Tax and Wales has Land Transaction Tax, each with its own rates and reliefs, so check the right one for where you're buying.

Keep reading

Sources

Figures checked against these sources on 6 October 2026. If a rule changes, we update the page and its date.

General information, not personal financial advice. Rules depend on your circumstances; check the official source or speak to a regulated adviser before acting.