Stamp Duty: Buying a home: a quick guide to the new Stamp Duty rules

From 1 April 2025, the temporary Stamp Duty Land Tax (SDLT) relief measures ended for buyers in England and Northern Ireland. For many people, this means the tax-free thresholds are lower, so SDLT may be higher than it was during the relief period.

If you’re planning to buy a home, it’s worth understanding the basics early. Stamp Duty is one of the larger upfront costs alongside your deposit, mortgage fees and legal costs.

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Stamp Duty guide for home buyers

What is Stamp Duty Land Tax?

SDLT is a tax paid when you buy property in England and Northern Ireland. It applies whether you:

buy your main home
move to a different property
purchase an additional property (for example, a second home or buy-to-let)

In most cases, your solicitor calculates and pays the SDLT as part of the completion process.

SDLT rates for most main home purchases (England & Northern Ireland)

For purchases of a main home, the SDLT rates and thresholds from 1 April 2025 are typically as follows:

Property price	SDLT rate
Up to £125,000	0%
£125,001 – £250,000	2%
£250,001 – £925,000	5%
£925,001 – £1.5 million	10%
Over £1.5 million	12%

Example (main home)

A buyer purchasing a property for £295,000 would pay SDLT on the portion above the threshold. Under the current bands, this works out to £4,750.

First-time buyer relief: what’s different now?

First-time buyers may still receive SDLT relief, but the thresholds have also been reduced.

First-time buyer SDLT bands (England & Northern Ireland):

Price of your first home	What you’ll pay
Up to £300,000	0%
£300,001 – £500,000	5% on the part over £300,000
Over £500,000	Relief no longer applies (standard rates apply)

Example (first-time buyer)

If a first-time buyer purchases a property for £450,000, the SDLT is calculated at 5% on the amount above £300,000 (i.e., £150,000). That totals £7,500.

Buying an additional property (second home / buy-to-let)

If you’re buying a property in addition to another property, such as a second home, holiday home or buy-to-let, a higher SDLT rate may apply.

In many cases, an additional 5% surcharge is charged on top of the standard SDLT rates. The exact outcome depends on your situation, so it’s important to ensure the SDLT calculation reflects whether this is your first property or an additional one.

Don’t mix up SDLT with the rest of the UK

Stamp Duty Land Tax is specific to England and Northern Ireland. If you’re buying elsewhere, different taxes and thresholds apply:

Scotland: Land and Buildings Transaction Tax (LBTT)
Wales: Land Transaction Tax (LTT)

For example, the tax-free threshold and relief approach can differ from SDLT, and first-time buyer relief may work differently.

Why these changes matter for budgeting

Stamp Duty is usually paid at completion, so it can affect how much cash you need at completion. Even if you’re confident about your mortgage affordability, it helps to budget for SDLT alongside:

your deposit
solicitor and conveyancing costs
mortgage fees (if applicable)
any survey or valuation costs

A common planning mistake is focusing only on the monthly mortgage payment and underestimating the upfront costs.

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A note on complexity

SDLT rules can be straightforward for a typical main home purchase, but they can become more detailed where there are multiple properties involved, or where your circumstances affect which rates apply. Getting the SDLT calculation right helps avoid last-minute surprises.

Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

Further information (official): GOV.UK: Stamp Duty Land Tax (SDLT)