What is Stamp Duty?
When you buy a new home, you may need to pay a tax on the purchase. The name of this tax and the amount you'll pay depend on where in the UK you're buying.
In England and Northern Ireland, this tax is called Stamp Duty Land Tax (SDLT). In Scotland, it's the Land and Buildings Transaction Tax (LBTT), and in Wales, it's the Land Transaction Tax (LTT). The rates for each tax are progressive, meaning you pay different rates on different portions of the property price.
Why do I need to pay Stamp Duty?
When you purchase a property, the change in land ownership must be legally registered at the Land Registry. This process requires a certificate from HMRC (or the relevant tax authority), which they will only issue on receipt of the tax due on the purchase of the property.
The transfer of funds to pay this tax will be managed for you by your solicitor as part of the home-buying process.
Stamp Duty in England & Northern Ireland (SDLT)
The following rates and reliefs apply to properties in England and Northern Ireland. You can use an online stamp duty calculator to estimate the tax for your purchase.
For example, if you buy a property for £300,000, the total SDLT payable would be £3,750.
Standard SDLT Rates
For most residential purchases, the following rates apply from 1 April 2025. There is no tax to pay on the first £125,000 of the property's value.
|
Purchase Price |
Stamp Duty % |
|
£0 to £125,000 |
0% |
|
£125,001 to £250,000 |
2% |
|
£250,001 to £925,000 |
5% |
|
£925,001 to £1,500,000 |
10% |
| Over £1,500,000 | 12% |
First-time buyer Stamp Duty relief
If you're a first-time buyer in England or Northern Ireland, you benefit from tax relief. From 1 April 2025, the following rates apply to properties costing up to £500,000.
|
Purchase Price |
Stamp Duty % |
|
Up to £300,000 |
0% |
|
£300,001 to £500,000 |
5% |
If the property you are buying is priced over £500,000, you are not eligible for first-time buyer relief and will pay the standard SDLT rates.
Buying an additional home or investment property
If you are buying an additional residential property, such as a second home or a buy-to-let investment, higher rates of SDLT apply. As of 31 October 2024, a 5% surcharge will be added to the standard rates. This applies to properties worth £40,000 or more in value.
From 1 April 2025, the rates for additional properties are as follows:
|
Purchase Price |
Stamp Duty % |
|
Up to £125,000 |
5% |
|
£125,001 to £250,000 |
7% |
|
£250,001 to £925,000 |
10% |
|
£925,001 to £1,500,000 |
15% |
|
Over £1,500,000 |
17% |
Other Important Considerations
Non-UK Residents
If you are not a UK resident and are buying a residential property in England or Northern Ireland, a 2% surcharge applies on top of the relevant standard or additional property rates. You are considered a UK resident for tax purposes if you have been in the UK for at least 183 days in the 365-day period leading up to your purchase.
Joint Purchases
If you are buying a property with someone who already owns another home, the higher rates for additional properties will apply to the entire transaction. This is the case even for first-time buyers. First-time buyer relief cannot be claimed in this situation.
Payment Deadline
You must file your Stamp Duty Land Tax return and pay any SDLT due within 14 days of completion. Late filing can result in penalties and interest charges from HMRC.
Stamp Duty FAQs
-
Yes. Stamp Duty applies to all property and land purchases above the relevant threshold, including new-build homes. The same rates apply whether you’re buying a brand-new property or an existing one.
-
Stamp Duty is worked out on a tiered basis. This means you pay different percentages on different portions of the property price, depending on which tax band each part falls into.
-
It’s always the buyer who pays Stamp Duty, not the seller. Your solicitor or conveyancer will usually take care of the paperwork and payment for you as part of the buying process.
-
Stamp duty must be paid within 14 days of completion but your solicitor will normally handle this, but it’s important to be aware of the deadlines as late payment can lead to penalties and interest charges.
-
Yes. Some property transfers are exempt, including:
- Transfers following divorce or separation
- Certain gifts and inheritances
- Properties transferred for no payment
- Purchases made by charities
- Properties below the minimum threshold
Even if no tax is due, you may still need to file a return to get the certificate required to register the property in your name. -
Yes. If you buy a new main residence before selling your previous home, you’ll need to pay the surcharge upfront. However, you can claim a refund if you sell your old home within 36 months of completing your new purchase.
-
Recent changes mean many buyers will pay more tax compared to purchases completed before April 2025:
From 1 April 2025
- Standard nil-rate threshold reduced from £250,000 to £125,000
- First-time buyer nil-rate threshold reduced from £425,000 to £300,000
- First-time buyer relief maximum reduced from £625,000 to £500,000
From 31 October 2024: Additional property surcharge increased from 3% to 5% in England and Northern Ireland
From 5 December 2024: Scotland’s Additional Dwelling Supplement increased from 6% to 8%
From 11 December 2024: Higher residential rates in Wales increased by 1 percentage point