What is Stamp Duty?
This guide explains what Stamp Duty is, how it’s calculated, and the latest 2025 rates for first-time buyers, second homes, and investors. Whether you're buying your first home or adding to your portfolio, this page helps you understand what you’ll pay and why.
Why do I need to pay Stamp Duty?
Stamp Duty rates in England and Northern Ireland 2025
- The purchase price of the property or land
- Whether you're a first-time buyer
- If it's an additional property (like a second home or a buy-to-let)
- Whether you are a non-UK resident
- If you're eligible for any other tax reliefs or exemptions
Standard residential stamp duty rates
For a standard residential property purchase, you pay SDLT on the portion of the price that falls into each tax band.
- 0% on the first £125,000 = £0
- 2% on the portion from £125,001 to £250,000 = £2,500
- 5% on the final £45,000 = £2,250
- Total SDLT = £4,750
Rates from 1 April 2025:
|
Purchase Price |
Stamp Duty Rate |
|
Up 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% |
Stamp Duty for First-Time Buyers
- 0% on the first £300,000 = £0
- 5% on the remaining £100,000 = £5,000
- Total SDLT = £5,000
|
Purchase Price |
Stamp Duty % |
|
Up to £300,000 |
0% |
|
£300,001 - £500,000 |
5% |
If the property costs more than £500,000, you cannot claim the relief and will pay the standard SDLT rates.
Stamp Duty on Second Homes and Buy-to-Let Properties
If you're buying an additional residential property, such as a second home or a buy-to-let investment worth £40,000 or more, you will usually have to pay higher rates of SDLT. A 5% surcharge applies on top of the standard rates.
- 5% on the first £125,000 = £6,250
- 7% on the portion from £125,001 to £250,000 = £8,750
- 10% on the final £50,000 = £5,000
- Total SDLT = £20,000
|
Purchase Price |
Additional Property Rate |
|
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% |
Non-resident surcharge
Land and Buildings Transaction Tax (LBTT) in Scotland
In Scotland, you pay Land and Buildings Transaction Tax (LBTT) instead of Stamp Duty. The rates and bands differ from those in the rest of the UK.
Standard residential LBTT rates
| Purchase Price | LBTT Rate |
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Over £750,000 | 12% |
First-time buyer LBTT relief in Scotland
Additional Dwelling Supplement (ADS)
Land Transaction Tax (LTT) in Wales
In Wales, the equivalent tax is Land Transaction Tax (LTT), which applies when you purchase a property over a certain threshold.
Main residential LTT rates
| Purchase Price | LTT Rate |
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.5% |
| £750,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Higher LTT rates for additional properties
Stamp Duty FAQs
-
Yes, property transaction tax is applicable to all property and land purchases exceeding the relevant threshold, including new-build homes. The same rates and rules apply as they do for existing properties.
-
The tax is calculated on a tiered basis, meaning you pay different percentages on different portions of the property price that fall into each tax band.
-
The buyer is responsible for paying the tax, not the seller. Your solicitor or conveyancer will usually handle this process for you.
-
The deadline for paying the tax and filing a return depends on where the property is located:
- England and Northern Ireland (SDLT): Within 14 days of the completion date
- Scotland (LBTT): Within 30 days of the completion date
- Wales (LTT): Within 30 days of the completion date
Your solicitor or conveyancer will usually handle this for you, but it's important to be aware of the deadlines as late payment can result in penalties and interest. -
Yes, some property transfers are exempt from property transaction tax, such as:
- Certain transfers following a divorce or separation
- Some gifts and inheritances
- Properties transferred for no payment
- Certain purchases by charities
- Properties under the minimum threshold
However, even if no tax is due, you may still need to file a tax return to receive the certificate required to register the property in your name. -
Yes, if you're buying a new main residence but haven't yet sold your previous home, you initially pay the additional property surcharge. You can claim a refund if you sell your old home within 36 months of completing the purchase of your new property.
-
If you're a first-time buyer but your co-buyer already owns a property, you won't qualify for first-time buyer relief. The higher rate for additional properties will also apply to the entire transaction.
-
1 April 2025:
- Standard nil-rate threshold decreased from £250,000 to £125,000
- First-time buyer nil-rate threshold decreased from £425,000 to £300,000
- First-time buyer relief maximum decreased from £625,000 to £500,000
31 October 2024:- The additional property surcharge increased from 3% to 5% in England and Northern Ireland
5 December 2024:- Scotland's Additional Dwelling Supplement increased from 6% to 8%
11 December 2024:- Higher residential rates in Wales increased by 1 percentage point
- These changes mean most property buyers will pay more tax compared to transactions completed before April 2025.
-
For the most current information and to calculate your property tax, visit:
- England & Northern Ireland: HMRC SDLT Calculator
- Scotland: Revenue Scotland LBTT Calculator
- Wales: Welsh Revenue Authority LTT Calculator
Our offers to help get you moving
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If you’re looking to start your next adventure, but are worried about the hassle of moving, we have a range of schemes available to help you sell your existing home.
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