What is Stamp Duty (SDLT)?
You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland.
You pay the tax when you:
Buy a freehold property
Buy a new or existing leasehold
Buy a property through a shared ownership scheme
Are transferred land or property in exchange for payment, for example you take on a mortgage or buy a share in a house
Thresholds
The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there’s no SDLT to pay, as of the 1st of April 2025, these thresholds are changing.
Up until the 31st of March 2025, SDLT starts to apply when you buy property that costs:
£250,000 for residential properties
£425,000 for first-time buyers buying a residential property worth £625,000 or less
£150,000 for non-residential land and properties
From the 1st of April 2025, SDLT starts to apply when you buy property that costs:
£125,000 for residential properties
£300,000 for first-time buyers buying a residential property worth £500,000 or less
£150,000 for non-residential land and properties
How much you pay
How much you pay depends on:
Whether the land or property will be used as a residential property or as a non-residential or mixed-use property
Whether you are eligible for relief or an exemption
For example, if you’re buying a residential property there are different rates of SDLT if:
You’re a first-time buyer
You already own a property and you’re buying an additional property
You’re not a UK resident
You can use HM Revenue and Customs’ (HMRC) Stamp Duty Land Tax calculator to work out how much tax you’ll pay.
Residential Property Rates
Rates up to 31st March 2025
0% SDLT up to £250,000
5% SDLT for the next £675,000 (the portion from £250,000 to £925,000)
10% SDLT for the next £575,000 (the portion from £925,001 to £1.5 million)
12% SDLT for the remaining amount (the portion above £1.5 million)
Example: In January 2025 you buy a house for £295,000. The SDLT you owe will be calculated as follows:
0% on the first £250,000 = £0
5% on the final £45,000 = £2,250
Total SDLT = £2,250
Rates from 1 April 2025
0% SDLT up to £125,000
2% SDLT for the next £125,000 (the portion from £125,001 to £250,000)
5% SDLT for the next £675,000 (the portion from £250,001 to £925,000)
10% SDLT for the next £575,000 (the portion from £925,001 to £1.5 million)
12% SDLT for the remaining amount (the portion above £1.5 million)
Example: In April 2025 you buy a house for £295,000. The SDLT you owe will be calculated as follows:
0% on the first £125,000 = £0
2% on the second £125,000 = £2,500
5% on the final £45,000 = £2,250
Total SDLT = £4,750
New leasehold sales and transfers
When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the ‘lease premium’) using the rates above.
If the total rent over the life of the lease (known as the ‘net present value’) is more than the SDLT threshold (currently £250,000), you’ll pay SDLT at 1% on the portion over £250,000.
From 1 April 2025 the SDLT threshold will change to £125,000.
If you’re buying your first home
You can claim a discount (relief) if the property you buy is your first home. You’re eligible if you and anyone else you’re buying with are first-time buyers.
The discount you can claim depends on when you purchase the property.
Discount up to 31 March 2025
You’ll pay:
No SDLT up to £425,000
5% SDLT on the portion from £425,001 to £625,000
If the price is over £625,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before.
Example: You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:
0% on the first £425,000 = £0
5% on the remaining £75,000 = £3,750
Total SDLT = £3,750
Discount from 1 April 2025
You’ll pay:
No SDLT up to £300,000
5% SDLT on the portion from £300,001 to £500,000
If the price is over £500,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before.
Example: You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:
0% on the first £300,000 = £0
5% on the remaining £200,000 = £10,000
Total SDLT = £10,000
Higher rates for additional properties
You now pay 5% ontop of SDLT rates if buying a new residential property means you’ll own more than one. This change has already come into effect.
See below SDLT cost examples for second property owners with current rates and new rates as of 1st April 2025.
If you’re replacing your main residence
You will not pay the extra 5% SDLT if the property you’re buying is replacing your main residence and that has already been sold.
If you have not sold your main residence on the day you complete your new purchase you’ll have to pay higher rates. This is because you own 2 properties.
You can apply for a refund if you sell your previous main home within 36 months.
Rates if you’re not a UK resident
If you’re not present in the UK for at least 183 days (6 months) during the 12 months before your purchase you are ‘not a UK resident’ for the purposes of SDLT.
You’ll usually pay a 2% surcharge if you’re buying a residential property in England or Northern Ireland.
You may not have to pay a surcharge on certain properties, transactions or if you’re a particular type of buyer.
How you can save by acting now
You can save on your home buying journey by acting now and with conditions expected to spark a homebuying rush, it's also a great time to sell and make the most of the market.
Just before Christmas, we met with Rob Brookes from Mortgage Advice Bureau, to break down what the changes mean for buyers. You can watch this video below:
Stamp Duty changes can feel overwhelming, but we’re here to make it simple for you. Whether you're buying your first home, investing in a property, or just curious about the adjustments, our team is here to discuss your plans, explore your options and support you in achieving your property goals.
Information provided on this blog is from gov.uk.
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