Costs & Finance6 min read17 February 2025

Stamp Duty 2025: How Much Will You Pay?

Stamp Duty Land Tax (SDLT) is one of the largest upfront costs of buying a home in England and Northern Ireland. The temporary thresholds introduced in 2022 expired on 1 April 2025, reverting to the previous rates. If you're buying in 2025 or 2026, here's exactly what you'll pay.

Standard SDLT Rates (from 1 April 2025)

These rates apply to residential property purchases in England and Northern Ireland by buyers who already own property and are not replacing their main residence.

Property priceSDLT rate
Up to £125,0000%
£125,001 to £250,0002%
£250,001 to £925,0005%
£925,001 to £1.5 million10%
Above £1.5 million12%
💡 Tip:SDLT is calculated on the slice of the purchase price that falls in each band — not the whole purchase price at the highest applicable rate. A £300,000 purchase pays 0% on the first £125k, 2% on the next £125k, and 5% on the last £50k.

First-Time Buyer Relief

First-time buyers benefit from reduced SDLT. As of 1 April 2025, the relief applies as follows:

Property priceFirst-time buyer rate
Up to £300,0000%
£300,001 to £500,0005% on the portion above £300k
Above £500,000Standard rates apply — no relief
💡 Tip:A first-time buyer at £300,000 pays zero SDLT. At £400,000 they pay £5,000 (5% × £100k). Above £500,000 the relief disappears and standard rates apply. You must never have owned residential property anywhere in the world — including inherited properties.

Additional Dwelling Surcharge

If you're buying a second property — a buy-to-let, holiday home, or investment property — while still owning your current home, an additional 5% surcharge applies on top of standard rates across all bands (as of 31 October 2024).

The surcharge applies even if the additional property is low-value. However, it does not apply if you're replacing your main residence — you get a refund if you sell your previous main home within 36 months of buying the new one.

⚠ Warning:The 5% surcharge significantly increases the upfront cost for buy-to-let buyers. On a £250,000 investment property, it adds £12,500 to your SDLT bill.

Scotland and Wales Have Different Systems

Scotland has Land and Buildings Transaction Tax (LBTT), administered by Revenue Scotland. Wales has Land Transaction Tax (LTT), administered by the Welsh Revenue Authority. Both have their own rates and thresholds that differ from SDLT.

If you're buying in Scotland or Wales, search for 'LBTT calculator' or 'LTT calculator' respectively — the rates and first-time buyer reliefs are different.

Calculating Your SDLT Bill

The easiest way to calculate your exact SDLT is to use HMRC's Stamp Duty Land Tax calculator on GOV.UK — it handles all the edge cases including first-time buyer relief and the additional dwelling surcharge.

As a rough guide for budget planning, first-time buyers buying at the UK average house price of around £290,000 will pay zero SDLT. A standard home mover buying at that price pays around £4,500. A buy-to-let investor buying the same property pays around £18,500.

ScenarioPurchase priceApprox. SDLT
First-time buyer£250,000£0
First-time buyer£400,000£5,000
Home mover (replacing main home)£300,000£5,000
Home mover (replacing main home)£500,000£15,000
Additional property (BTL/second home)£250,000£18,500
Additional property (BTL/second home)£500,000£40,000

Key Takeaways

  • Standard SDLT thresholds reverted to pre-2022 levels from 1 April 2025
  • First-time buyers pay 0% on up to £300,000 and 5% on the portion between £300k and £500k
  • A second property surcharge of 5% applies on top of standard rates for additional dwellings
  • Scotland and Wales have entirely separate property transaction taxes — check LBTT and LTT rates separately
  • Use HMRC's SDLT calculator on GOV.UK for an exact figure based on your situation

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