What is Stamp Duty? Your 2025 Guide to UK Property Tax
Stamp duty is the tax charged by the Government when you buy a home of more than £125,000 in England and Northern Ireland.
In Scotland and Wales, there are similar taxes with different names and rates — Land and Buildings Transaction Tax (LBTT) in Scotland and Land Transaction Tax (LTT) in Wales.
The amount you pay depends on the price of the property and your situation. For example, first-time buyers benefit from reduced rates, while second homes and investment properties are charged at higher levels.
This guide will walk you through how Stamp Duty is calculated, the latest 2025 rates, and what they mean for you whether you’re buying your very first home or adding to your property portfolio.
Understanding Stamp Duty Land Tax (SDLT)
Stamp Duty Land Tax, commonly referred to as stamp duty, is a government tax levied on the purchase of property and land in England and Northern Ireland.
When you buy a new home, this tax must be paid to HM Revenue and Customs (HMRC) for the change in land ownership as registered with the Land Registry. Your solicitor will typically manage the payment for you as part of the homebuying process.
The amount you pay depends on your property's price, your buyer status (for example, if you're a first-time buyer or buying an additional property), and where in the UK you're buying.
Current Stamp Duty Rates in England and Northern Ireland
For homebuyers in England and Northern Ireland, stamp duty is calculated using a tiered system based on property price bands.
Important: Rates changed on 1 April 2025. The temporarily reduced thresholds that were in place from September 2022 to March 31, 2025, have now ended.
Standard Rates (from 1 April 2025)
For buyers replacing their primary residence:
|
Purchase Price Band |
Stamp Duty Rate |
|
Up to £125,000 |
0% |
|
£125,001 to £250,000 |
2% |
|
£250,001 to £925,000 |
5% |
|
£925,001 to £1,500,000 |
10% |
| Over £1,500,000 | 12% |
First-Time Buyer Rates (from 1 April 2025):
If you've never owned property before (anywhere in the world), you may qualify for reduced rates:
|
Purchase Price Band |
Stamp Duty Rate |
|
£0 to £300,000 |
0% |
|
£300,001 to £500,000 |
5% |
Note: If you're buying a property over £500,000, you'll pay the standard rates shown above. The first-time buyer relief only applies to properties costing £500,000 or less.
Additional Property Rates (from 1 April 2025)
If you're buying a second home, buy-to-let property, or any additional property, you pay a 5% surcharge on top of the standard rates for the entire purchase price:
|
Purchase Price Band |
Stamp Duty Rate |
|
Up to £125,000 |
5% |
|
£125,001 to £250,000 |
7% |
|
£250,001 to £925,000 |
10% |
|
£925,001 to £1,500,000 |
15% |
|
Over £1,500,000 |
17% |
Key Changes from April 2025
The changes that took effect on 1 April 2025 include:
- Standard nil-rate threshold decreased from £250,000 to £125,000
- First-time buyer nil-rate threshold decreased from £425,000 to £300,000
- First-time buyer relief maximum decreased from £625,000 to £500,000
These changes mean most buyers will pay more stamp duty compared to transactions completed before 1 April 2025.
How Stamp Duty is Calculated
Stamp duty is calculated on the portions of the property price that fall within each band, not on the entire purchase price.
Example: If you buy a house for £350,000 as your main residence in April 2025:
- £0 - £125,000: 0% = £0
- £125,001 - £250,000: 2% = £2,500
- £250,001 - £350,000: 5% = £5,000
- Total stamp duty: £7,500
Important Deadlines
You have 14 days from completion to file a Stamp Duty Land Tax return and pay any SDLT due. If you don't submit the return and pay the tax within 14 days, HMRC may charge you penalties and interest.
Property Taxes in Scotland and Wales
England and Northern Ireland use Stamp Duty Land Tax (SDLT), but Scotland and Wales have their own property tax systems with different rates and thresholds.
Scotland: Land and Buildings Transaction Tax (LBTT)
Scotland replaced Stamp Duty with LBTT in 2015. The current rates are:
Standard Residential Rates:
| Property Price Band | LBTT Rate |
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Over £750,000 | 12% |
First-Time Buyer Relief in Scotland:
First-time buyers in Scotland benefit from a higher threshold of £175,000 (compared to £145,000 for standard buyers).
Additional Dwelling Supplement (ADS):
For second homes and buy-to-let properties in Scotland, an 8% surcharge applies to the entire purchase price, effective from 5 December 2024 (previously 6%).
Example:
A £300,000 second home in Scotland would pay:
- Standard LBTT: £8,100
- ADS (8% of £300,000): £24,000
- Total: £32,100
For more information, visit Revenue Scotland.
First-Time Buyer Relief in Scotland:
First-time buyers in Scotland benefit from a higher threshold of £175,000 (compared to £145,000 for standard buyers).
Additional Dwelling Supplement (ADS):
For second homes and buy-to-let properties in Scotland, an 8% surcharge applies to the entire purchase price, effective from 5 December 2024 (previously 6%).
Example:
A £300,000 second home in Scotland would pay:
- Standard LBTT: £8,100
- ADS (8% of £300,000): £24,000
- Total: £32,100
For more information, visit Revenue Scotland.
Wales: Land Transaction Tax (LTT)
Wales replaced Stamp Duty with LTT in 2018. The current rates are:
Main Residential Rates:
| Property Price Band | LTT Rate |
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.5% |
| £750,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Higher Residential Rates (from 11 December 2024):
For second homes and buy-to-let properties in Wales, higher rates apply that are approximately 5 percentage points above the main residential rates:
| Property Price Band | LTT Rate |
| Up to £180,000 | 5% |
| £180,001 to £250,000 | 8.5% |
| £250,001 to £400,000 | 10% |
| £400,001 to £750,000 | 12.5% |
| £750,001 to £1,500,000 | 15% |
| Over £1,500,000 | 17% |
Note: Wales does not offer first-time buyer relief. The nil-rate threshold of £225,000 applies to all main residential purchases.
For more information, visit the Welsh Revenue Authority.
Stamp Duty Frequently Asked Questions
-
The buyer pays stamp duty, not the seller. Your solicitor or conveyancer typically handles the payment on your behalf as part of the conveyancing process.
-
Yes, stamp duty is based on the property price and the buyer's circumstances, not the number of buyers. If either buyer already owns a property, you may be required to pay an additional property surcharge.
-
Yes, if you're buying a new primary residence but haven't yet sold your previous home, you initially pay the additional property surcharge. You can claim a refund if you sell your old home within 36 months of completing the purchase of your new property.
-
Scotland offers first-time buyer relief with a higher threshold (£175,000). Wales does not currently offer first-time buyer relief, though all buyers benefit from the £225,000 nil-rate threshold.
-
If you're a first-time buyer but your co-buyer already owns a property, you won't qualify for first-time buyer relief. The higher rate for additional properties may also apply, depending on the circumstances.
-
Yes, certain transactions are exempt or eligible for relief, including:
- Properties transferred due to divorce or dissolution of a civil partnership
- Properties inherited through a will
- Properties gifted for no payment
- Certain purchases by charities
- Properties under the minimum threshold
-
You don't pay stamp duty directly. Your solicitor or conveyancer will calculate the amount due, submit the stamp duty return to HMRC (or Revenue Scotland/Welsh Revenue Authority), and arrange payment from the funds you provide for completion.
-
If you don't file your stamp duty return and pay the tax within 14 days of completion, HMRC will charge penalties and interest. The penalty starts at £100 and increases the longer you delay.
-
Non-UK residents face an additional 2% surcharge on top of standard rates in England and Northern Ireland (this does not apply in Scotland or Wales).For the most current rates and to calculate your stamp duty, use:
- England & Northern Ireland: HMRC Stamp Duty Calculator
- Scotland: Revenue Scotland LBTT Calculator
- Wales: Welsh Revenue Authority LTT Calculator
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