What is Stamp Duty?

Stamp Duty, also known as Stamp Duty Land Tax (SDLT), is a charge that applies when purchasing a residential property in the UK.

The charge applies regardless of whether the property is new or second hand, and the amount you pay depends on the purchase price and your status as a buyer.

The more expensive the property, the more Stamp Duty you’ll pay. A higher rate of Stamp Duty is also applied if you own more than one home, such as a buy-to-let or a holiday home. There’s good news if you are a first-time buyer though, as the initial threshold at which you start to pay Stamp Duty is higher.

Stamp Duty also applies to both freehold and leasehold properties and whether you are using a mortgage or buying with cash.

For more information on Stamp Duty, head to the government’s website.

The Government announced a Stamp Duty holiday on 23rd September 2022, which means you'll only need to pay this tax if you are purchasing a property worth over £250,000 that is intended to be your main residence. However, this relief is due to end 31st March 2025, when thresholds will return to their previous levels.

The great news is, due to the current Stamp Duty holiday, first-time buyers won't have to pay any stamp duty on a property up to the value of £425,000. First-time buyers also receive a discounted rate on purchases up to £625,000, paying 5% SDLT on the portion from £425,001 to £625,000. If the property costs more than this, you’ll pay the normal rate of Stamp Duty and will not receive any discount. To be eligible for this you and anyone else you’re buying with must be first-time buyers.

How much Stamp Duty will I pay?

Stamp duty rates until 31st March 2025 (England & Northern Ireland)

Purchase price	Main Residence Stamp Duty Rate (A)	Second Home Stamp Duty Rate (B)
Up to £250,000 (£425,000 for first-time buyers) (C)	0%	5%
£250,001 – £925,000	5%	10%
£925,001– £1,500,000	10%	15%
£1,500,001+	12%	17%

(A) Rate applies to relevant portion of the purchase price. (B) The higher rate does not apply when purchasing an additional property for less than £40,000. (C) The £425,000 first-time buyer stamp duty threshold will not apply when purchasing a property that costs more than £625,000 – if it does, the £250,000 threshold applies.

These temporary rates will come to an end on 31st March 2025, when the threshold for paying the tax will return to its previous level of £125,000, while the rate for first-time buyers will also return to £300,000. 

The changes to the thresholds will also impact those purchasing a second home or buy-to-let property. You will be required to pay an additional 5% surcharge on top of each Stamp Duty band.

To learn more about Stamp Duty, visit the Government’s website.

Stamp duty rates from 1st April 2025 (England & Northern Ireland)

(A) Rate applies to relevant portion of the purchase price. (B) The higher rate does not apply when purchasing an additional property for less than £40,000. (C) The £300,000 first-time buyer stamp duty threshold will not apply when purchasing a property that costs more than £500,000 – if it does, the £150,000 threshold applies.

Want to learn more about how these changes will affect you?

Please enquire below to speak to one of our sales consultants, or request your fee-free mortgage advice from an independent mortgage broker.