Stamp Duty Land Tax is one of the biggest upfront costs when buying a property, and in Cambridge it can be one of the largest. Since April 2025, the thresholds have changed — meaning most buyers now pay more than they would have a year earlier. At Cambridge price points, where the average first-time buyer purchase is around £407,000 (ONS, December 2025, provisional), most first-time buyers will pay stamp duty — unlike in many other markets where the £300,000 nil-rate band covers the purchase.
This guide explains the current stamp duty rates, shows what you would pay at typical Cambridge price points, and covers the reliefs and exemptions that may affect your bill. Whether you are a first-time buyer, moving home, or buying an additional property, understanding stamp duty early helps you budget accurately.
How Stamp Duty Works
Stamp Duty Land Tax (SDLT) applies when you buy a residential property or land in England or Northern Ireland above a certain price threshold. It is a progressive tax, meaning you pay different rates on different portions of the purchase price — similar to how income tax works. You do not pay the highest rate on the entire price.
SDLT is paid as a lump sum on completion. Your solicitor or conveyancer will usually handle the payment and submit the return to HMRC on your behalf. You have 14 days from completion to file and pay.
Current Stamp Duty Rates (From April 2025)
As at February 2026, the following SDLT rates and thresholds apply. Rates and thresholds are set by HMRC and can be checked on GOV.UK.
Standard Rates (Home Movers)
| Purchase Price Band | SDLT Rate | Tax on Band |
| Up to £125,000 | 0% | £0 |
| £125,001 – £250,000 | 2% | Up to £2,500 |
| £250,001 – £925,000 | 5% | Up to £33,750 |
| £925,001 – £1,500,000 | 10% | Up to £57,500 |
| Above £1,500,000 | 12% | Varies |
First-Time Buyer Rates
First-time buyers benefit from a higher nil-rate threshold, but only on properties up to £500,000. If the property costs more than £500,000, you pay standard rates on the full purchase price with no first-time buyer relief.
| Purchase Price Band | SDLT Rate |
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| Above £500,000 | No relief — standard rates apply |
To qualify as a first-time buyer, you (and anyone you are buying with) must never have owned a residential property anywhere in the world.
Additional Property Rates
If you are buying a second home, buy-to-let property, or any additional residential property worth £40,000 or more, you pay a 5% surcharge on top of the standard rates. This surcharge applies to the entire purchase price, starting from the first pound.
The additional property surcharge increased from 3% to 5% with effect from 31 October 2024. Full rules are on GOV.UK. If you are replacing your main residence (selling one home and buying another), the surcharge should not apply — though there are timing rules to be aware of.
Non-UK Residents
If you are treated as non-UK resident for SDLT purposes, an additional 2% surcharge may apply on top of all other applicable rates. The residence test is specific and can depend on time spent in the UK around the date of the transaction. Your solicitor can confirm whether the surcharge applies and whether a refund may be available.
Stamp Duty in Cambridge: Worked Examples
Cambridge property prices typically range from around £250,000 for a flat to over £700,000 for a larger detached home. Here is what stamp duty looks like at price points common in the local market.
First-Time Buyers in Cambridge
| Property Price | SDLT | Property Type | Typical Area |
| £300,000 | £0 | One-bed flat | Arbury, Kings Hedges |
| £350,000 | £2,500 | Two-bed flat or small terrace | Cherry Hinton, Chesterton |
| £400,000 | £5,000 | Two/three-bed house | Trumpington, Histon |
| £450,000 | £7,500 | Three-bed semi | Great Shelford, Girton |
| £500,000 | £10,000 | Three/four-bed family home | Queen Edith’s, Impington |
In Cambridge, most first-time buyer purchases exceed £300,000 — which means the majority of first-time buyers in this market will pay some stamp duty. ONS data shows the average first-time buyer price in Cambridge around £407,000 (December 2025, provisional), which would attract SDLT of approximately £5,350. This is a meaningful upfront cost that should be factored into your budget alongside the deposit.
Home Movers in Cambridge
| Property Price | SDLT | Property Type | Typical Area |
| £350,000 | £7,500 | Two-bed flat or small terrace | Cherry Hinton, Chesterton |
| £400,000 | £10,000 | Two/three-bed house | Trumpington, Histon |
| £500,000 | £15,000 | Three/four-bed family home | Queen Edith’s, Eddington |
| £600,000 | £20,000 | Four-bed detached | Great Shelford, Girton |
| £700,000 | £25,000 | Larger detached or period home | Newnham, Grantchester |
| £800,000 | £30,000 | Premium detached or central | Central Cambridge, Barton |
At Cambridge price points, stamp duty for home movers is a significant sum. At £500,000, you pay £15,000 in stamp duty on top of your deposit and other costs. This is a meaningful upfront cost and should be built into your budget from the outset. Prices vary by area, property condition, and market conditions.
Additional Property Buyers
If you are buying a second home or buy-to-let in Cambridge, the 5% surcharge is added to each band. On a £500,000 additional property, the total SDLT would be £40,000. On a £400,000 additional property, it would be £30,000. These are substantial sums that should be factored into your overall purchase costs. For more on buy-to-let lending in Cambridge, see our buy-to-let mortgage guide.
What Can Affect Your Stamp Duty Bill
The following is general guidance only. Your solicitor will confirm what applies to your purchase and file the SDLT return on your behalf.
Claim First-Time Buyer Relief
If you qualify as a first-time buyer, you pay no SDLT on properties up to £300,000, and 5% on the portion between £300,001 and £500,000. In Cambridge, where most first-time buyer purchases exceed £300,000, the relief still provides a meaningful saving compared to the standard rates — even though it does not eliminate the bill entirely. Make sure your solicitor applies the relief correctly on your SDLT return.
Negotiate the Purchase Price
A small reduction in purchase price can sometimes reduce your stamp duty. For example, a first-time buyer purchasing at £310,000 would pay £500 in SDLT, while a purchase at £300,000 would attract £0. Being aware of where the SDLT band boundaries sit can be useful when making an offer.
Understand the Replacement Main Residence Rules
If you temporarily own two properties because your sale has not yet completed when you buy your new home, you will initially pay the 5% additional property surcharge. However, if you sell your previous main residence within three years of buying the new one, you can claim a refund of the surcharge from HMRC. This is important for anyone in a chain or buying before selling.
Consider Transfer of Equity
Transfers of equity can have SDLT implications depending on whether any money changes hands or mortgage debt is assumed as part of the arrangement. The rules are specific and can vary significantly depending on the circumstances. Your solicitor can confirm whether SDLT applies and how much would be payable.
Use Shared Ownership Rules Where Applicable
If you are buying through a shared ownership scheme, you may be able to pay SDLT only on the share you are purchasing rather than the full market value. There are two methods for calculating SDLT on shared ownership purchases. Your solicitor can confirm which applies and how the SDLT should be reported.
What Changed in April 2025
Between September 2022 and March 2025, temporary SDLT thresholds were in place. According to HMRC’s published historical rates (gov.uk/government/publications/rates-and-allowances-stamp-duty-land-tax), these provided a higher nil-rate band for standard buyers (£250,000, now reverted to £125,000) and for first-time buyers (£425,000, now reverted to £300,000). The maximum property price eligible for first-time buyer relief also dropped from £625,000 to £500,000.
At the same time, the surcharge for additional property purchases increased from 3% to 5%, effective from October 2024.
At Cambridge price points, these changes can make a noticeable difference to the upfront cost of buying. Under the temporary thresholds, a first-time buyer purchasing at £407,000 would have paid no stamp duty. Under the current rates, they pay approximately £5,350. For home movers, the increase is similarly significant at Cambridge price points.
These rates and thresholds apply as at February 2026.
Stamp Duty and Your Mortgage
SDLT cannot be added to your mortgage. It must be paid from your own funds on completion, alongside your deposit and any other costs such as legal fees. This means you need to budget for stamp duty on top of your deposit, not instead of it.
When a broker assesses how much you can afford to buy, stamp duty should be factored into the total cost of the purchase. In Cambridge, where stamp duty bills can be substantial, this can affect which properties are realistically within reach.
For first-time buyers in Cambridge, the stamp duty bill adds to an already significant deposit requirement. At a purchase price of £407,000, a 10% deposit is £40,700 and stamp duty is approximately £5,350 — meaning you need around £46,000 in savings before legal fees and other costs. For a detailed guide to how much you can borrow in Cambridge.
Frequently Asked Questions
How much is stamp duty on a £400,000 house in Cambridge?
For a first-time buyer, the stamp duty on a £400,000 property would be £5,000 (5% on the portion above £300,000). For a home mover, the stamp duty would be £10,000. For an additional property purchase, the total would be £30,000 including the 5% surcharge.
Do first-time buyers pay stamp duty in Cambridge?
First-time buyers pay no stamp duty on properties up to £300,000. However, in Cambridge most first-time buyer purchases exceed £300,000, which means the majority of first-time buyers in this market will pay some SDLT. On properties between £300,001 and £500,000, first-time buyers pay 5% on the portion above £300,000. Properties above £500,000 do not qualify for first-time buyer relief.
How much is stamp duty on a £500,000 house?
For a first-time buyer, £10,000 (5% on the £200,000 above £300,000). For a home mover, £15,000. For an additional property, £40,000 including the 5% surcharge.
When do I have to pay stamp duty?
SDLT must be paid within 14 days of completion. Your solicitor or conveyancer will normally handle the payment and submit the return to HMRC on your behalf.
Can I add stamp duty to my mortgage?
No. Stamp duty must be paid from your own funds. It cannot be added to your mortgage. You should factor it into your savings alongside your deposit and other purchase costs.
What is the additional property surcharge?
If you are buying a second home, buy-to-let, or any additional residential property worth £40,000 or more, you pay a 5% surcharge on top of the standard SDLT rates. This applies from the first pound of the purchase price. If you are replacing your main residence and sell the previous one within three years, you can claim a refund.
How much stamp duty will I pay on a house in Cambridge in 2026?
It depends on the purchase price, whether you are a first-time buyer, and whether you already own another property. For a home mover buying at £500,000, the stamp duty is £15,000. For a first-time buyer at the same price, it is £10,000. The tables earlier in this guide show the SDLT at common Cambridge price points.
Has stamp duty changed for 2026?
As at February 2026, the rates and thresholds in this guide apply. HMRC can change rates and thresholds in future budgets. The most recent change was in April 2025, when the temporary higher thresholds that had been in place since September 2022 came to an end.
Next Steps
Stamp duty is one part of the total cost of buying a home. Understanding it early helps you set a realistic budget and avoid surprises on completion day.
If you are planning a purchase in Cambridge and want to understand how stamp duty fits alongside your deposit, mortgage, and other costs, we can walk you through the full picture.
Visit our Cambridge office to book a consultation or call 01223 655 579.