Stamp Duty Calculator Guide 2025: SDLT Rates & Thresholds
Stamp Duty Land Tax (SDLT) is one of the largest costs when buying property in England and Northern Ireland. Understanding how it's calculated can help you budget properly and potentially save thousands. This guide covers the 2025 rates, first-time buyer relief, and the additional property surcharge.
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Important: April 2025 Changes
From 1 April 2025, stamp duty thresholds are changing significantly. The nil-rate band drops from £250,000 back to £125,000, and first-time buyer relief reduces from £425,000 to £300,000. If you're buying, consider completing before April 2025!
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Stamp Duty Rates 2025 (From April 2025)
Stamp duty is calculated in bands, similar to income tax. You only pay each rate on the portion of the price within that band.
| Property Value Band | SDLT 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% |
| Above £1,500,000 | 12% |
Current Rates (Until 31 March 2025)
| Property Value Band | SDLT Rate |
|---|---|
| Up to £250,000 | 0% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
How to Calculate Stamp Duty
Example: £350,000 Property (From April 2025)
- First £125,000 × 0% = £0
- Next £125,000 (£125,001-£250,000) × 2% = £2,500
- Remaining £100,000 (£250,001-£350,000) × 5% = £5,000
Total Stamp Duty: £7,500
Example: £350,000 Property (Before April 2025)
- First £250,000 × 0% = £0
- Remaining £100,000 × 5% = £5,000
Total Stamp Duty: £5,000
Buying before April 2025 saves £2,500!
First-Time Buyer Stamp Duty Relief
First-time buyers get reduced stamp duty rates, but the thresholds are changing in April 2025:
From April 2025
| Property Value Band | First-Time Buyer Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Above £500,000 | Standard rates apply (no relief) |
Until March 2025
| Property Value Band | First-Time Buyer Rate |
|---|---|
| Up to £425,000 | 0% |
| £425,001 to £625,000 | 5% |
| Above £625,000 | Standard rates apply (no relief) |
Who Qualifies as a First-Time Buyer?
- Never owned property anywhere in the world
- Property must be your main residence
- Both buyers must be first-time buyers (joint purchases)
- Inherited property counts as ownership
- Commercial property ownership doesn't count
Additional Property Surcharge (Second Homes & Buy-to-Let)
If you're buying an additional property, you pay a surcharge on top of standard rates:
5% Additional Rate Surcharge
From October 2024, the surcharge increased from 3% to 5%. This applies to:
- Second homes
- Buy-to-let properties
- Holiday homes
- Properties bought through a company
| Property Value Band | Additional Property Rate (From April 2025) |
|---|---|
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1,500,000 | 15% |
| Above £1,500,000 | 17% |
Example: £300,000 Buy-to-Let (From April 2025)
- First £125,000 × 5% = £6,250
- Next £125,000 × 7% = £8,750
- Remaining £50,000 × 10% = £5,000
Total Stamp Duty: £20,000
Compare to main residence: £7,500 (difference: £12,500)
Stamp Duty Comparison Tables
Standard Buyers (April 2025 onwards)
| Property Price | Stamp Duty | Effective Rate |
|---|---|---|
| £125,000 | £0 | 0% |
| £200,000 | £1,500 | 0.75% |
| £250,000 | £2,500 | 1% |
| £300,000 | £5,000 | 1.67% |
| £400,000 | £10,000 | 2.5% |
| £500,000 | £15,000 | 3% |
| £750,000 | £27,500 | 3.67% |
| £1,000,000 | £41,250 | 4.13% |
First-Time Buyers (April 2025 onwards)
| Property Price | Stamp Duty | Saving vs Standard |
|---|---|---|
| £200,000 | £0 | £1,500 |
| £250,000 | £0 | £2,500 |
| £300,000 | £0 | £5,000 |
| £350,000 | £2,500 | £5,000 |
| £400,000 | £5,000 | £5,000 |
| £450,000 | £7,500 | £5,000 |
| £500,000 | £10,000 | £5,000 |
Scotland: Land and Buildings Transaction Tax (LBTT)
Scotland has its own system called LBTT with different rates:
| Property Value 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% |
| Above £750,000 | 12% |
Scotland's additional dwelling supplement is 6% for second homes.
Wales: Land Transaction Tax (LTT)
Wales has its own Land Transaction Tax:
| Property Value 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% |
| Above £1,500,000 | 12% |
Wales has a 4% additional rate for second homes.
When Is Stamp Duty Due?
- Deadline: 14 days after completion
- Who pays: The buyer (usually handled by solicitor)
- How paid: Solicitor submits return and payment to HMRC
- Late payment: Interest and penalties apply
Stamp Duty Exemptions and Reliefs
Full Exemptions
- Property transferred in divorce settlements
- Property left in a will
- Properties under £40,000 (even for additional properties)
- Certain purchases by charities
Reliefs
- Multiple dwellings relief: When buying 2+ properties in one transaction
- First-time buyer relief: As described above
- Shared ownership relief: Pay SDLT in stages
Replacing Your Main Residence
If you're buying a new main home before selling your old one, you may:
- Pay the 5% surcharge initially
- Claim a refund if you sell the old property within 36 months
- Apply for refund within 12 months of selling the old property
Tips to Reduce Your Stamp Duty Bill
- Complete before April 2025: Take advantage of higher nil-rate bands
- First-time buyer? Claim relief if eligible
- Consider price thresholds: A £124,999 property pays no stamp duty; £125,001 pays £1
- Negotiate fixtures separately: Removable items (carpets, curtains) excluded from price
- Shared ownership: May reduce initial stamp duty
- Selling second home? Sell before buying to avoid surcharge
Calculate Your Stamp Duty
Use our Stamp Duty Calculator to see exactly how much you'll pay!
Conclusion
Stamp duty is a significant cost when buying property, but understanding how it works helps you plan effectively. Key points to remember:
- Rates are changing in April 2025—consider completing before then
- First-time buyers get valuable relief up to £300,000 (from April 2025)
- Second homes and buy-to-lets pay a 5% surcharge
- Scotland and Wales have their own systems with different rates
- Always factor stamp duty into your total purchase budget
Speak to a solicitor or conveyancer for advice specific to your situation, especially for complex purchases or reliefs.
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.