Stamp Duty 2025 Complete Guide: UK Rates, Reliefs & How to Pay
Everything you need to know about Stamp Duty Land Tax in England and Northern Ireland for the 2025/26 tax year — rates, thresholds, first-time buyer relief, additional-property surcharge, and step-by-step calculation examples.
Table of Contents
What Is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a tax charged by the UK government when you purchase a property or land in England or Northern Ireland above a certain price threshold. The tax is calculated on the purchase price and must be paid to HM Revenue & Customs (HMRC) shortly after the transaction completes. Scotland and Wales have their own equivalent taxes — Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) respectively.
SDLT applies to residential property, commercial property, and land. The rates and thresholds differ depending on whether you are buying a residential property, a non-residential or mixed-use property, your status as a buyer (first-time buyer or not), and whether you already own other residential properties.
The tax is charged on a tiered or "slice" basis, meaning each rate applies only to the portion of the price that falls within that band — not the entire purchase price. This is an important distinction that many buyers misunderstand, and it means the effective tax rate is always lower than the headline rate for the top band.
SDLT Rates 2025/26: England & Northern Ireland
The following rates apply to purchases of residential property in England and Northern Ireland from 1 April 2025 onwards. These are the standard rates for buyers who already own (or have owned) a residential property.
| Property Price Band | Standard SDLT Rate | Tax on This Slice |
|---|---|---|
| Up to £125,000 | 0% | £0 |
| £125,001 to £250,000 | 2% | Up to £2,500 |
| £250,001 to £925,000 | 5% | Up to £33,750 |
| £925,001 to £1,500,000 | 10% | Up to £57,500 |
| Above £1,500,000 | 12% | 12% of the excess |
For example, if you purchase a property for £400,000 as a home mover (not a first-time buyer and not an additional property), the SDLT is calculated as follows:
- 0% on the first £125,000 = £0
- 2% on £125,001 to £250,000 (£125,000 slice) = £2,500
- 5% on £250,001 to £400,000 (£150,000 slice) = £7,500
- Total SDLT: £10,000
Non-Residential and Mixed-Use Property Rates
Different rates apply when buying commercial property, land, or mixed-use property (property that includes both residential and commercial elements). The non-residential rates are generally lower:
| Price Band | Non-Residential Rate |
|---|---|
| Up to £150,000 | 0% |
| £150,001 to £250,000 | 2% |
| Above £250,000 | 5% |
First-Time Buyer Relief
First-time buyers purchasing a residential property in England and Northern Ireland benefit from a higher nil-rate threshold, meaning they pay less (or no) SDLT on properties up to a certain price. To qualify, you — and anyone else buying the property with you — must never have owned or inherited a home anywhere in the world previously.
| Property Price Band | First-Time Buyer Rate |
|---|---|
| Up to £425,000 | 0% |
| £425,001 to £625,000 | 5% |
| Above £625,000 | Standard rates apply (no FTB relief) |
Shared Ownership and First-Time Buyers
First-time buyers purchasing through a shared ownership scheme can also benefit from FTB relief. They can either pay SDLT on the full market value of the property at the outset (and pay no SDLT on future staircasing purchases) or pay SDLT only on the share they are buying and then pay further SDLT as they staircase.
Additional Property: 3% Surcharge
If you already own one or more residential properties and you are buying another, a 3% surcharge is added to each SDLT band on top of the standard rates. This applies to:
- Buy-to-let properties
- Second homes and holiday homes
- Purchasing a new main home before selling your old one
- Properties bought through limited companies
| Price Band | Standard Rate | Additional Property Rate |
|---|---|---|
| Up to £125,000 | 0% | 3% |
| £125,001 to £250,000 | 2% | 5% |
| £250,001 to £925,000 | 5% | 8% |
| £925,001 to £1,500,000 | 10% | 13% |
| Above £1,500,000 | 12% | 15% |
Limited Company SDLT
Properties purchased through a limited company are always subject to the 3% additional-property surcharge, regardless of how many properties the company owns. For residential properties costing more than £500,000 purchased by a company, the Annual Tax on Enveloped Dwellings (ATED) may also apply in addition to SDLT.
Scotland: LBTT & Wales: LTT
Scotland — Land and Buildings Transaction Tax (LBTT)
Scotland has its own property transaction tax called LBTT, administered by Revenue Scotland. The rates and thresholds are set by the Scottish Parliament and differ from English SDLT. For residential property in 2025/26:
| Purchase Price (Scotland) | 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 also has a first-time buyer relief, raising the nil-rate threshold to £175,000 for qualifying first-time buyers. An Additional Dwelling Supplement (ADS) of 6% applies to additional residential properties, charged on the full purchase price.
Wales — Land Transaction Tax (LTT)
Wales charges LTT on property purchases, administered by the Welsh Revenue Authority. The rates for residential property in 2025/26 are:
| Purchase Price (Wales) | 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 does not have a separate first-time buyer relief rate but the higher nil-rate threshold of £225,000 (compared to England's £125,000) already provides some benefit. An additional-property surcharge of 4% applies in Wales on top of standard LTT rates.
Reliefs and Exemptions
SDLT does not apply in all circumstances. Several reliefs and exemptions can reduce or eliminate the tax liability:
No SDLT Payable In These Cases
- Transfers as gifts: No SDLT if the property is gifted with no money or mortgage changing hands.
- Inheritance: Properties transferred through a will or intestacy do not attract SDLT.
- Divorce or civil partnership dissolution: Court-ordered property transfers between spouses or civil partners following separation are exempt.
- Property below the nil-rate threshold: Any purchase at or below £125,000 (standard) or £425,000 (first-time buyer) attracts 0% SDLT.
- Transfers of equity: If the consideration (money or mortgage assumed) is zero or below the threshold.
Multiple Dwellings Relief (MDR)
When purchasing two or more dwellings in a single transaction, buyers can claim Multiple Dwellings Relief. SDLT is calculated on the average price per dwelling and applied to each, which can significantly reduce the total bill where the portfolio includes a mix of low-value and high-value properties. From June 2024, MDR was abolished for most transactions — check the current HMRC guidance as the rules have changed.
Charities Relief
Charities can claim relief from SDLT when purchasing property for charitable purposes. The property must be held for qualifying charitable purposes and not be used for non-charitable activities.
Right to Buy
Tenants exercising the Right to Buy their council or housing association home can claim a discount, which may bring the property below the SDLT threshold entirely.
How and When to Pay Stamp Duty
SDLT must be paid within 14 days of the completion date of your property purchase. In practice, your solicitor or licensed conveyancer calculates the amount due, files the SDLT return on your behalf, and deducts the payment from the funds you have transferred to them. The return must be filed even if no SDLT is payable (for example, because you are a first-time buyer purchasing below the threshold).
How to Pay Directly
If you are handling conveyancing yourself (which is unusual but permitted), you can file and pay SDLT online via HMRC's SDLT online service, by post, or by telephone for some situations. Payment methods accepted by HMRC include:
- Online banking or BACS transfer
- CHAPS (same-day payment)
- Debit card (online)
- Cheque (post only — allow extra time)
Late Payment Penalties
Missing the 14-day deadline triggers automatic penalties and interest charges. HMRC charges interest at the official rate on any overdue amount from the day after the 14-day deadline expires. Fixed penalties apply for late filing even if no SDLT is owed. For significant delays, further penalties escalate over 3 months and 12 months.
Worked Calculation Examples
Example 1: Home Mover, £350,000 Property (England)
| Band | Amount in Band | Rate | Tax |
|---|---|---|---|
| Up to £125,000 | £125,000 | 0% | £0 |
| £125,001–£250,000 | £125,000 | 2% | £2,500 |
| £250,001–£350,000 | £100,000 | 5% | £5,000 |
| Total | £7,500 |
Example 2: First-Time Buyer, £500,000 Property (England)
| Band | Amount in Band | Rate | Tax |
|---|---|---|---|
| Up to £425,000 | £425,000 | 0% | £0 |
| £425,001–£500,000 | £75,000 | 5% | £3,750 |
| Total | £3,750 |
Example 3: Additional Property (Second Home), £250,000 (England)
| Band | Amount in Band | Rate (incl. 3% surcharge) | Tax |
|---|---|---|---|
| Up to £125,000 | £125,000 | 3% | £3,750 |
| £125,001–£250,000 | £125,000 | 5% | £6,250 |
| Total | £10,000 |
Example 4: High-Value Property, £2,000,000 (England)
| Band | Amount in Band | Rate | Tax |
|---|---|---|---|
| Up to £125,000 | £125,000 | 0% | £0 |
| £125,001–£250,000 | £125,000 | 2% | £2,500 |
| £250,001–£925,000 | £675,000 | 5% | £33,750 |
| £925,001–£1,500,000 | £575,000 | 10% | £57,500 |
| £1,500,001–£2,000,000 | £500,000 | 12% | £60,000 |
| Total | £153,750 |
Calculate Your Stamp Duty Instantly
Use our free stamp duty calculator to find out exactly how much SDLT you owe, including first-time buyer and additional-property scenarios.
Open Stamp Duty CalculatorFrequently Asked Questions
Tips for Reducing Your Stamp Duty Bill
While SDLT cannot be avoided entirely when buying property above the threshold, there are legitimate ways to reduce your liability:
- Negotiate fixtures and fittings separately: White goods, curtains, carpets, and other moveable items can sometimes be agreed as a separate payment outside the property price, reducing the SDLT base (HMRC scrutinises this and the amounts must be genuine market value).
- Use the first-time buyer relief: If you qualify, ensure your solicitor claims the relief correctly on your SDLT return.
- Joint purchase with a first-time buyer: If one purchaser already owns property, neither buyer can claim first-time buyer relief — both must be first-time buyers.
- Replace your main home within 36 months: If you must pay the additional-property surcharge on a new home, prioritise selling your old home within the 36-month window to claim the refund.
- Consider exchange and completion timing: In some cases, timing a purchase to coincide with a new tax year (or policy change) can make a material difference to SDLT liability.