📚 This is a plain-English definitions guide. All rates and thresholds are drawn from HMRC and gov.uk official sources. This is not financial advice — see the disclaimer below.
Stamp Duty Land Tax (SDLT) is a tax you pay when you buy property or land in England and Northern Ireland. It’s one of the biggest upfront costs of buying a home — and the rates changed in April 2025. Here’s exactly how it works and how much you’ll pay.
Stamp Duty is paid on the purchase price of a property. It works in bands — like income tax — so you pay different rates on different portions of the price. You don’t pay one flat rate on the whole amount.
It’s paid by the buyer, not the seller. Your solicitor usually handles the payment as part of the conveyancing process. You have 14 days from completion to file and pay.
For standard residential purchases (moving home, not a first-time buyer, not a second property):
| Property value | SDLT rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Example: buying a £300,000 home. You pay 0% on the first £125,000 (£0), 2% on the next £125,000 (£2,500), and 5% on the remaining £50,000 (£2,500). Total: £5,000.
First-time buyers get a discount — but the thresholds reverted in April 2025 after a temporary holiday period:
| Property value | First-time buyer rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| Over £500,000 | Standard rates apply (no relief) |
To qualify, you must never have owned property anywhere in the world before — and every buyer on the purchase must be a first-time buyer.
Example: a first-time buyer purchasing a £400,000 flat pays 0% on the first £300,000 and 5% on the next £100,000 — a total of £5,000, saving £5,000 compared to standard rates.
If you’re buying a second home, a buy-to-let property, or any additional residential property, you pay an extra 3 percentage points on top of the standard rates at every band.
This applies even if the additional property is low-value. There is a limited exemption if you’re replacing your main residence — but only if you sell your previous main home on the same day or have already sold it.
Stamp Duty is an England and Northern Ireland tax. Scotland and Wales have their own equivalents:
If you’re buying in Scotland or Wales, check the relevant Revenue Scotland or Welsh Revenue Authority calculators.
HMRC provides several statutory reliefs that reduce or eliminate SDLT in defined circumstances:
Full SDLT guidance, including all reliefs, is published at gov.uk/stamp-duty-land-tax.
SDLT rate changes, stamp duty holidays, and housing market announcements — FinanceSimply covers every Budget change that affects buyers, in plain English.
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