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UK Stamp Duty 2025 — Rates, First-Time Buyer Relief and Examples

Current SDLT rates for England, first-time buyer thresholds, second home surcharge — with worked examples.

📖 5 min read  ·  Updated May 2025  ·  FinanceUKProperty

Stamp Duty Land Tax (SDLT) is paid when you purchase property in England and Northern Ireland. Scotland has Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT) — both with different rates.

England SDLT Rates 2025

  • 0% on first £250,000
  • 5% on £250,001–£925,000
  • 10% on £925,001–£1.5M
  • 12% over £1.5M

Example — £400,000 property: 0% on £250,000 = £0. 5% on £150,000 = £7,500. Total SDLT = £7,500. Effective rate = 1.875%.

First-Time Buyer Relief

First-time buyers pay 0% on the first £425,000 and 5% on £425,001–£625,000. Above £625,000, standard rates apply and no relief is available. This relief can save up to £8,750 on a purchase at or below the threshold.

Second Home / Buy-to-Let Surcharge

Buyers of additional residential properties pay an extra 3% on top of standard rates at every band. On a £300,000 second home: standard SDLT = £2,500; with 3% surcharge on the full £300,000 = additional £9,000; total = £11,500. The surcharge applies even to caravans and mobile homes used as dwellings.

When to Pay

SDLT must be paid within 14 days of completion (the legal transfer of ownership). Your solicitor or conveyancer normally handles the filing and payment. Late payment incurs interest and penalties.

Scotland LBTT and Wales LTT

Scotland: 0% to £145,000; 2% on £145,001–£250,000; 5% on £250,001–£325,000; 10% on £325,001–£750,000; 12% over £750,000. Wales: 0% to £225,000; 6% on £225,001–£400,000; 7.5% on £400,001–£750,000; 10% on £750,001–£1.5M; 12% over £1.5M.

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Frequently Asked Questions

How much stamp duty do I pay on a £350,000 house?
Standard SDLT on £350,000: 0% on £250,000 + 5% on £100,000 = £5,000. As a first-time buyer: 0% on £350,000 (under £425,000 threshold) = £0 — saving £5,000.
Can I claim first-time buyer stamp duty relief?
Yes if you have never owned a residential property anywhere in the world and are purchasing for £625,000 or less. In joint purchases, all buyers must be first-time buyers. The relief reduces SDLT to 0% up to £425,000 and 5% on £425,001–£625,000.
Does stamp duty apply to Scotland?
No — Scotland has LBTT (Land and Buildings Transaction Tax) instead of SDLT, with different rates and bands. Wales has LTT (Land Transaction Tax). Northern Ireland uses SDLT with the same rates as England.
Is the 3% second home surcharge refundable?
Yes, under certain conditions. If you sell your main residence within 3 years of paying the 3% surcharge, you can apply for a refund from HMRC. You must apply within 12 months of selling the old home or 12 months after the SDLT filing date, whichever is later.
When was stamp duty last changed?
The current England SDLT thresholds have been in place since September 2022 when the government raised the nil-rate threshold from £125,000 to £250,000. These were scheduled as temporary measures initially but became permanent.