STAMP DUTY UPDATE 2025: WHAT HOMEBUYERS NEED TO KNOW
As of 31 October 2024, the UK government has updated the Stamp Duty Land Tax (SDLT) thresholds for residential property purchases in England and Northern Ireland. These changes aim to support homebuyers and stimulate the housing market.
Note: Scotland and Wales have separate property tax systems—Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT), respectively.
What Are the Current SDLT Rates?
Standard Residential Property Rates (2025)
| Property Price Bracket | SDLT Rate |
|---|---|
| Up to £250,000 | 0% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5 million | 10% |
| Over £1.5 million | 12% |
First-Time Buyer Relief
| Property Price Bracket | SDLT Rate |
|---|---|
| Up to £425,000 | 0% |
| £425,001 – £625,000 | 5% |
| Over £625,000 | Standard rates apply |
Note: First-time buyer relief does not apply to properties over £625,000.
Additional Properties (Buy-to-Let / Second Homes)
An additional 5% surcharge applies on top of the standard rates if the purchase results in ownership of more than one residential property.
Non-Resident Surcharge
A 2% surcharge applies to non-UK residents purchasing residential property in England or Northern Ireland.
How Much Stamp Duty Will I Pay?
Example:
If you buy a home for £850,000, you would pay:
- 0% on the first £250,000
- 5% on the next £600,000 = £30,000
Total SDLT: £30,000
When Is Stamp Duty Paid?
Stamp duty must be paid to HMRC within 14 days of completion. Your solicitor will usually handle this for you. Some buyers choose to add the SDLT amount to their mortgage—check with your lender.
Need Help Calculating Stamp Duty?
Use our Stamp Duty Calculator to estimate how much you’ll need to pay based on the latest 2025 rates.
Disclaimer: This article is for general guidance only and may not reflect your specific circumstances. Always consult a solicitor or financial adviser for tailored advice.