This paper replaces an earlier version entitled “The Effect of the UK Stamp Duty Land Tax on Household Mobility” (SERC Discussion Paper No. 115, July 2012). We estimate the effect of the UK Stamp Duty Land Tax on household mobility using micro data. Exploiting a discontinuity in the tax schedule as a quasi-experimental setting, we isolate the impact of the stamp duty from other determinants of mobility. We compare homeowners with self-assessed house values on either sides of a cut-off value where the tax rate increases from 1 to 3 percent and find that a higher stamp duty strongly negatively affects their propensity to move. The 2 percentage-point increase in the stamp duty reduces the annual rate of mobility by between 2 and 3 percentage-points or about 30 percent. This adverse effect is confined to short-distance and non-job related moves, suggesting a distortion in the housing rather than the labour market. As a cross-validation check, we also analyze the distribution of actual transaction prices and find that the tax rate increase reduces the volume of sales by roughly 30 percent. Most developed countries impose a tax – often labelled ‘stamp duty’ – on housing transactions. The stamp duty increases the transaction costs associated with the sale of a property and therefore increases the costs of moving for homeowners. This cost increase can be expected to negatively affect the propensity to move. Thus, the stamp duty is prone to have adverse effects on housing- and labour markets. Households may not live in the type of dwelling and the location that most closely match their preferences. Similarly, individuals may be less willing to accept new jobs that are not within commuting distance or they may decide to hold on to a current job that is a less good match than another available job further away. Given these potential adverse effects caused by mismatch in housing- and labour markets, the question of whether, and to what extent, the stamp duty reduces housing- and job-related household mobility is highly policy relevant.