Stamp Duty Explained: What You Need to Know in 2025

💡 What is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a tax you pay when you buy property or land in England. The amount depends on the price of the property, whether you’re a first-time buyer, home mover, buying a second home, or purchasing a Buy-to-Let.

In 2025, the current SDLT thresholds remain as part of the government’s temporary relief measures, which are due to be reviewed later this year.

 Current Stamp Duty Rates (2025)

Standard Residential Purchase (Main Home):

Property Price	Stamp Duty Rate
Up to £250,000	0%
£250,001 – £925,000	5%
£925,001 – £1.5 million	10%
Over £1.5 million	12%

🏠 First-Time Buyers

If you're a first-time buyer, you're eligible for extra relief:

• No Stamp Duty on properties up to £425,000

• 5% Stamp Duty on the portion from £425,001 to £625,000

• If the property is over £625,000, normal rates apply

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✅ Example:

Buying your first home for £400,000?

You’ll pay £0 in stamp duty.

Buying for £500,000?

You’ll pay 5% on the £75,000 above £425,000 = £3,750

🏖️ Second Homes & Holiday Lets

If you’re buying a second home, holiday home, or keeping your current property while buying another, you’ll pay a 3% surcharge on top of the standard rates.

✅ Example:

Buying a second home for £400,000?

• Normal rate = 0% on first £250k + 5% on £150k = £7,500

• 3% surcharge on full £400k = £12,000Total = £7,500 + £12,000 = £19,500

🏘️ Buy-to-Let Properties

Buy-to-Let purchases also fall under the 3% surcharge rules, regardless of whether you already own property.

✅ Example:

Buying a Buy-to-Let for £300,000?

• Normal rate = 0% on first £250k + 5% on £50k = £2,500

• 3% surcharge on full £300k = £9,000Total Stamp Duty = £11,500

Many landlords purchase through limited companies and should factor this into their tax planning.

📌 Important Considerations

• Stamp Duty is due within 14 days of completion.

• If you're selling your main home and accidentally pay the second home surcharge, you may be eligible for a refund (if you sell your old home within 3 years).

• First-time buyer status only applies if you and anyone else buying with you have never owned property anywhere in the world.

• Married couples are treated as one buyer when it comes to ownership rules.

⚠️ Important Stamp Duty Disclaimer

Stamp Duty rules can change frequently, and the amounts you owe will depend on your individual situation, such as whether you're married, buying jointly, or selling at the same time.

We strongly recommend seeking personalised financial advice before making any decisions. This guide is for informational purposes only and does not constitute tax or legal advice.

Your home may be repossessed if you do not keep up repayments on your mortgage.