What is Stamp Duty and When is it Payable?
Stamp Duty is tax paid by the purchaser when buying a residential property, such as a house or flat. The amount of Stamp Duty Land Tax (SDLT) depends on the value of the property, the purchase date and whether you are a multiple homeowner. SDLT is payable on properties purchased in the UK or Northern Ireland. However, different rules apply if you are a non-UK resident or if you are purchasing in Scotland or Wales.
SDLT is due when you buy either a freehold property, a new or existing leasehold or a property through a shared ownership scheme. It is also payable when you are transferred land or property in exchange for payment. It is calculated on increasing portions of the property price (see below).
Current Rates
Up to 31 March 2025, the following rates apply. To qualify for these rates, your transaction must be completed before this date, meaning you legally own the property.
| Rates up to 31 March 2025 | |
| Property or lease premium or transfer value | SDLT rate |
| Up to £250,000 | 0% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
| Rates from 1 April 2025 | |
| Property or lease premium or transfer value | SDLT rate |
| Up to £125,000 | 0% |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
Buying your first home
You can claim a discount (relief) if the property you buy is your first home. To be eligible both you, and anyone else you’re buying with, must be first-time buyers.
Up to 31 March 2025 this discount is as follows:
- No SDLT due up to £425,000
- 5% SDLT on the portion from £425,001 to £625,000
You cannot claim the relief if the purchase price is over £625,000.
Whereas from 1 April 2025, the discount is:
- No SDLT up to £300,000
- 5% SDLT on the portion from £300,001 to £500,000
You will not be able to claim the relief if the purchase price is over £500,000.
Buying additional properties
Higher rates of SDLT apply for anyone purchasing additional residential properties, as you will usually have to pay 5% on top of SDLT rates if buying the new property means you’ll own more than one.
Replacing your main residence
The additional 5% SDLT will not be payable if both the following apply:
- The property you’re buying is replacing your main residence.
- Your previous main residence was sold within 36 months of completing your new purchase.
Therefore, if you have not yet sold your main residence on the day you complete your new purchase, you’ll have to pay higher rates.
Calculating SDLT
You can use the Gov.UK SDLT calculator and check the higher rates to work out how much tax you’ll pay.
You can also check if you are eligible for a refund.
References
Find out more about SDLT by visiting: https://www.gov.uk/stamp-duty-land-tax
