What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a fee, charged by the Government, when you buy a new residential home in England, whether brand new or pre-owned.
Your solicitor will usually calculate and pay your stamp duty on your behalf, although this is also something you can do yourself.
How much will I have to pay?
Stamp Duty Land Tax (SDLT or Stamp Duty) rates changed on 1st April 2025, when the temporary increases to thresholds that were put in place in September 2022, came to an end.
Previously first-time buyers paid no Stamp Duty when buying a home up to the total value of £425,000. This threshold has now dropped to total value of £300,000, meaning any home purchase above £300,000 a Stamp Duty Tax will apply.
The Stamp Duty Rates are as follows:
Purchase price: £250,000 - £925,000 = 5% Rate
Purchase price: £925,001 - £1.5 million = 10%
Purchase price: Over 1 million = 12%
Whether you're buying your first home, moving to better suit your needs, or seeking an investment property, its important to understand how the new Stamp Duty rates will affect you.
Are you a First Time Buyer?
The first-time buyer threshold has decreased from £425,000, meaning you won't have to pay Stamp Duty on properties priced up to total value of £300,000. You will only pay tax on the amount above the threshold. If you were to buy a home for £304,000, as a first time buyer, you’d only pay 5% tax on the £4,000 that falls above the £300,000 threshold.
Do you already own a home?
For those purchasing an additional property—such as a second home or investment property—higher Stamp Duty Land Tax (SDLT) costs now apply. Previously, buyers of additional properties paid a 3% surcharge on top of standard SDLT rates, but as of October 31, 2024, this surcharge has increased to 5%. For example, if you buy a second property priced up to £250,000, you’ll pay 5% in SDLT. Properties priced between £250,001 and £925,000 will incur a 10% rate on that portion, and for properties between £925,001 and £1.5 million, the rate is 15%.
If you’re replacing your main residence, however, the additional 5% surcharge does not apply, provided you’ve sold your previous main home. If your former main residence has not sold by the completion date of your new property, you’ll still pay the higher rates temporarily, as you’ll own two properties. In this situation, you can apply for a refund of the additional SDLT if you sell your previous home within 36 months.
Overseas buyer?
Since 1st April 2021, non-UK residents buying property in England or Northern Ireland must pay a 2% surcharge on top of the existing stamp duty rates. If non-UK residents purchase a second property, they must pay both the second home and the overseas buyer surcharges.
Overseas buyer status depends on your location, not citizenship or residency status (though there’s civil service and armed forces relief). To qualify as a UK buyer, you or the civil partner or spouse you’re buying with should have stayed in the UK for at least 183 days out of the 12 months before the property purchase date.
