SDLT (Stamp Duty Land Tax)
Definition
A tax paid when you buy a property in England or Northern Ireland above a certain price threshold. SDLT is progressive — you pay different rates on different portions of the purchase price. From April 2025, the nil-rate threshold is £125,000 (£300,000 for first-time buyers on properties up to £500,000). Additional property surcharge is 5%.
Why it matters
Stamp duty is often the second-largest upfront cost after the deposit. Getting the calculation wrong — especially around first-time buyer relief or the additional property surcharge — can throw your budget off by thousands. The rules changed significantly in April 2025, and the three UK nations each have separate systems with different thresholds.
Frequently asked questions
How much stamp duty will I pay on a £300,000 property?
For a standard buyer in England (not a first-time buyer and not buying an additional property), you'd pay £5,000: nothing on the first £125,000, then 2% on the next £125,000 (£2,500), and 5% on the remaining £50,000 (£2,500). First-time buyers pay nothing up to £300,000 on properties up to £500,000.
Do I pay stamp duty on a new build?
Yes — the same SDLT rates apply to new builds as to existing properties. Some developers offer stamp duty incentives (effectively absorbing the cost), but legally the tax still applies. If you're using Help to Buy or shared ownership, the rules on when you pay can differ.
When did the stamp duty thresholds change?
The temporary higher thresholds introduced in September 2022 expired on 31 March 2025. From 1 April 2025, the nil-rate band reverted to £125,000 for standard buyers and £300,000 for first-time buyers (on properties up to £500,000).
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