UK Stamp Duty 2025
Stamp Duty Land Tax (SDLT, or Stamp Duty) is a tax payable to HM Revenue and Customs (HMRC) when buying a property or land in England and Northern Ireland.
The amount of SDLT liability will depend on several factors, including (but not limited to) whether a buyer is:
- A UK resident
- Purchasing a property as an individual or company
- A first-time buyer
- Replacing a main residence
- Purchasing additional property
In September 2022, the Government announced a temporary increase to the thresholds above which SDLT must be paid. The temporary increase ended on 31 March 2025, meaning that any transaction which completes thereafter will be subject to the increased rates of Stamp Duty (outlined below)
Buyers and sellers alike ought to be aware that the average residential property transaction takes between 12 and 16 weeks to complete, but can, in certain circumstances, take much longer. Typically, these circumstances are generally only uncovered during a transaction. It is also worth bearing in mind that this timeframe does not take into consideration the time it may take to attract a buyer from the date the property is first listed.
Current Stamp Duty rates from 1 April 2025
Stamp Duty rates on a standard residential purchase of a freehold property, for an individual who is a UK resident and replacing a main residence, will be as follows:
- 0% up to £125,000
- 2% above £125,000 and up to £250,000
- 5% above £250,000 and up to £925,000
- 10% above £925,000 and up to £1,500,000
- 12% above £1,500,000
First-time buyers.
You can claim a discount (relief) if the property you buy is your first home. You’re eligible if you and anyone else you’re buying with are first-time buyers.
You’ll pay:
- No SDLT up to £300,000
- 5% SDLT on the portion from £300,001 to £500,000
If the price is over £500,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before.
Example.
You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:
- 0% on the first £300,000 = £0
- 5% on the remaining £200,000 = £10,000
- Total SDLT = £10,000
Higher rates for additional properties
You will usually have to pay 5% on top of SDLT rates if buying a new residential property means you’ll own more than one.
Being aware of these changes and understanding the future landscape of Stamp Duty may assist you in realising your plans sooner rather than later to take advantage of substantial savings.
For the latest information on Stamp Duty Land Tax rates, please click here to access the UK Government website.
Here is a direct link to the UK Government Stamp Duty calculator.
