Stamp Duty Calculator Guide

Stamp Duty Land Tax (SDLT) is a significant cost when buying property in England and Northern Ireland. This guide explains the current rates, reliefs available, and how to calculate your stamp duty bill.

Standard Stamp Duty Rates (From April 2025)

Current Rates (Until 31 March 2025)

First-Time Buyer Relief

First-time buyers get reduced rates on their first property purchase:

Current (Until March 2025)

• 0% on first £425,000 for properties up to £625,000
• 5% on amount between £425,000 and £625,000
• Properties over £625,000 don't qualify

From April 2025

• 0% on first £300,000 for properties up to £500,000
• 5% on amount between £300,000 and £500,000
• Properties over £500,000 don't qualify

Additional Property Surcharge

Buying a second home or buy-to-let? You pay a surcharge on top of standard rates:

Stamp Duty Calculator Examples

Standard Purchase Examples (Current Rates)

*First-time buyer relief not available above £625,000

Who Qualifies as a First-Time Buyer?

To claim first-time buyer relief:

• You must never have owned or part-owned a property anywhere in the world
• You must intend to live in the property as your main residence
• If buying jointly, both buyers must be first-time buyers
• Inherited properties count—even if you sold them

When Is Stamp Duty Due?

• SDLT must be paid within 14 days of completion
• Your solicitor usually handles payment
• Late payment incurs penalties and interest
• You receive an SDLT5 certificate after payment

Stamp Duty Reliefs and Exemptions

Multiple Dwellings Relief

Buying a property with annexe or multiple units? You may pay based on average unit price rather than total price.

Transfers Between Spouses

Transfers between married couples or civil partners are exempt from SDLT.

Inherited Property

You don't pay SDLT on inherited property. However, if you inherit a share and later buy another property, the additional property surcharge may apply.

Shared Ownership

Special rules apply. You can pay SDLT on the share you're buying or elect to pay on the full value upfront.

Scotland and Wales

These nations have their own property taxes:

Scotland: Land and Buildings Transaction Tax (LBTT)

• Different rates and thresholds
• Additional Dwelling Supplement (ADS) of 6%

Wales: Land Transaction Tax (LTT)

• Different rates and thresholds
• Higher rates for additional properties

Tips to Reduce Stamp Duty

1. Complete before April 2025: Take advantage of current higher thresholds
2. Check first-time buyer status: Save thousands if you qualify
3. Consider timing: If selling and buying, can you avoid additional surcharge?
4. Negotiate price: A lower price means less SDLT
5. Separate chattels: Furniture and fittings can be excluded (with limits)

How Stamp Duty Is Calculated

Stamp Duty Land Tax uses a progressive, marginal rate system similar to income tax. This means you do not pay the highest rate on the entire purchase price; instead, each portion of the price falling within a particular band is taxed at that band's rate. Understanding this marginal system is important because many buyers overestimate their SDLT liability by incorrectly applying the highest applicable rate to the full purchase price.

For a standard residential purchase of £400,000 in England with the temporary thresholds (before April 2025), the calculation works as follows. The first £250,000 is taxed at 0 percent, resulting in no tax. The next £150,000 (from £250,001 to £400,000) falls within the 5 percent band, resulting in £7,500 in tax. The total SDLT payable is £7,500. After April 2025, if thresholds revert to previous levels, the same property would attract SDLT on portions above £125,000, significantly increasing the tax bill. Staying informed about threshold changes and timing your purchase accordingly can save thousands of pounds.

The additional property surcharge adds 3 percent to each band rate for buyers who already own another residential property. Using the same £400,000 example, a second-home buyer would pay 3 percent on the first £250,000 (£7,500) plus 8 percent on the next £150,000 (£12,000), totalling £19,500. If you sell your previous main residence within three years of buying the new one, you can apply for a refund of the surcharge. This refund must be claimed within 12 months of the sale or 12 months after the filing date of the SDLT return, whichever is later.

UK Regional Stamp Duty Differences

One of the most important aspects of stamp duty that many buyers overlook is that England, Scotland, and Wales each operate their own property transaction tax systems with different rates, thresholds, and rules. In Scotland, the Land and Buildings Transaction Tax (LBTT) applies instead of SDLT, with different rate bands. First-time buyers in Scotland benefit from a raised threshold of £175,000, above which the standard LBTT rates apply progressively.

In Wales, the Land Transaction Tax (LTT) replaced SDLT from April 2018. Welsh rates and thresholds differ from both England and Scotland, with the starting threshold for residential properties set at £225,000. The higher rates surcharge for additional properties in Wales is 4 percent, higher than the 3 percent surcharge in England. These regional differences mean that the same property price can result in significantly different tax bills depending on which part of the UK you are buying in.

The practical impact of these regional differences can be substantial. For a £300,000 property purchase by a non-first-time buyer, the stamp duty varies: approximately £2,500 in England (with current temporary thresholds), around £4,600 in Scotland under LBTT, and approximately £3,750 in Wales under LTT. For second homes or buy-to-let properties at the same price, the differences are even more pronounced due to the varying surcharge rates. Always use the correct calculator for the nation in which you are purchasing.

Frequently Asked Questions

Do first-time buyers pay stamp duty?

First-time buyers in England and Northern Ireland currently benefit from stamp duty relief. Under the temporary thresholds in effect until March 2025, first-time buyers pay no SDLT on the first £425,000 and 5 percent on the portion between £425,001 and £625,000. Properties above £625,000 do not qualify for first-time buyer relief, and standard rates apply to the entire purchase price. To qualify, neither buyer must have previously owned a residential property anywhere in the world, including inherited property.

When is stamp duty due and how do I pay it?

Stamp duty must be paid within 14 days of the completion date (the day ownership transfers to you). In practice, your conveyancer or solicitor handles the SDLT return and payment on your behalf, deducting the amount from the completion funds. If the payment is late, HMRC charges automatic penalties starting at £100, with interest accruing on the unpaid amount from day one. Your solicitor should ensure timely payment, but it is worth confirming this has been done shortly after completion.

Can I claim stamp duty back if I sell my previous home?

If you paid the 3 percent additional property surcharge because you owned two properties simultaneously, you can claim a refund if you sell your previous main residence within three years. The refund must be claimed by filing an amendment to the original SDLT return within 12 months of the sale of the previous property or within 12 months of the filing date of the SDLT return, whichever is later. The claim is made to HMRC and refunds are typically processed within 15 working days. Keep all transaction records as HMRC may request evidence.

Oliver Williams, CeMAP

Independent Mortgage Adviser

Oliver is a CeMAP-qualified independent mortgage adviser with 15+ years of experience helping first-time buyers and property investors navigate the UK housing market. He is registered with the FCA.