What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax paid when purchasing residential property or land in England and Northern Ireland. On 1 April 2025, the UK Government rolled back temporary SDLT relief thresholds, lowering the nil-rate bands. You can calculate both the current rates and the historical rates using the dropdown menu above.
SDLT applies to both freehold and leasehold properties, whether bought outright or with a mortgage. Note that Scotland uses the Land and Buildings Transaction Tax (LBTT) and Wales uses the Land Transaction Tax (LTT) instead of Stamp Duty.
UK Gov website source
How is stamp duty calculated?
SDLT is a progressive tax calculated in tiers. You only pay the specific tax rate on the portion of the property price that falls within that exact band, rather than paying a flat rate on the entire purchase price.
First-time buyers
First-time buyers in England and Northern Ireland pay zero Stamp Duty on properties worth up to £300,000. To qualify, you must be purchasing your only or main residence and have never owned a freehold or leasehold residential property in the UK or overseas.
If the purchase price is over £500,000, you do not qualify for first-time buyer tax relief, and standard SDLT rates apply to the entire purchase.
Second homes and buy-to-let
Purchasing an additional residential property (such as a second home or buy-to-let) incurs an extra 5% surcharge on top of standard SDLT rates across all price tiers. This surcharge rate was increased from 3% to 5% following the October 2024 UK Budget. Caravans, mobile homes, and motorhomes are exempt.
If you temporarily own two properties - for example, due to a delay in selling your previous residence - the higher surcharge rates apply to your new purchase. However, you can apply for a full refund of the 5% surcharge if you sell your previous main residence within 3 years and claim the refund within 3 months of that sale.
Current SDLT Rates (From 1 April 2025)
Standard Rates:
£0 - £125,000 = 0% tax
£125,001 - £250,000 = 2% tax
£250,001 - £925,000 = 5% tax
£925,001 - £1.5m = 10% tax
Over £1.5m = 12% tax
Note: Add an additional 5% to each band for second homes or buy-to-let properties.
First-Time Buyer Rates:
£0 - £300,000 = 0% tax
£300,001 - £500,000 = 5% tax
(Purchases over £500,000 pay standard rates)
Historical SDLT Rates (Up to 31 March 2025)
Standard Rates:
£0 - £250,000 = 0% tax
£250,001 - £925,000 = 5% tax
£925,001 - £1.5m = 10% tax
Over £1.5m = 12% tax
First-Time Buyer Rates:
£0 - £425,000 = 0% tax
£425,001 - £625,000 = 5% tax
(Purchases over £625,000 paid standard rates)
When does Stamp Duty have to be paid?
An SDLT return must be filed and the tax paid within 14 days of completion. Your solicitor or conveyancer will normally handle this paperwork and payment on your behalf.
