Stamp duty when downsizing: what pensioners really pay.
There is no age relief and no downsizer relief anywhere in the UK. Everyone pays the same bands on the new home, and they differ by nation. Here they are, with the trap for people who buy before they sell.
England and Northern Ireland: Stamp Duty Land Tax
| Part of the price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
So a £300,000 home costs £5,000 (nothing on the first £125,000, £2,500 on the next £125,000, £2,500 on the last £50,000). A £250,000 home costs £2,500. A £200,000 home costs £1,500.
Scotland: Land and Buildings Transaction Tax
| Part of the price | Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Above £750,000 | 12% |
A £300,000 home in Scotland costs £4,600.
Wales: Land Transaction Tax
| Part of the price | Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.5% |
| £750,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
A £300,000 home in Wales costs £4,500.
The trap: buying before you sell
If you complete on the new home while you still own the old one, you are buying an "additional property" on that day, even though you intend to sell. The surcharge is 5 percentage points on every band in England and Northern Ireland (so £300,000 costs £20,000 instead of £5,000), 8% of the whole price in Scotland, and a separate, higher set of bands in Wales.
The good news: sell the old home within three years and you can claim the surcharge back (Scotland extended its window to 36 months in 2024; Wales allows longer in some circumstances). You still have to find the money up front, which is one reason most downsizers sell first. Selling first or buying first.
Things people ask
- Does being over 65 help? No. There is no age-related relief.
- Retirement flats? Same bands as any other home. Some developers offer to pay your stamp duty as an incentive; treat it as a discount and negotiate the price as well.
- Park homes? A park (mobile) home is not usually a land transaction, so no stamp duty, but you do not own the land and pay a pitch fee. Types of home.
- Buying in a child's name, or jointly with a child? Get advice. If the child already owns a home, the surcharge can apply to the whole purchase, and there are inheritance, care and relationship-breakdown consequences too.
- When is it paid? Your solicitor pays it on completion, out of the money you send them, and files the return within 14 days (England and NI).
Run your own figures on the stamp duty calculator, with the "still own my current home" box ticked if you may buy first.
A note on the numbers. Tax thresholds, benefit limits and typical costs are correct as far as we know at the time of writing (2026) and, unless we say otherwise, are for England. Scotland, Wales and Northern Ireland differ in places. Rules change and your circumstances matter. This is information, not advice: check the current position and talk to a solicitor, an FCA-authorised adviser or a tax professional before you act.
Quick answers
Is there any stamp duty relief for downsizers?
No. Various campaigns have called for one, but at the time of writing none of the four UK nations offers an age or downsizing exemption.
How do I claim the additional-property surcharge back?
In England and NI, through HMRC (online form or your solicitor) within 12 months of selling the old home, provided the sale is within three years of the purchase. Scotland and Wales have similar processes through Revenue Scotland and the Welsh Revenue Authority.
What if the new home is much cheaper?
Under £125,000 in England and NI, £145,000 in Scotland or £225,000 in Wales there is nothing to pay at standard rates. The surcharge for owning two homes still applies above £40,000.
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