What is stamp duty?

Stamp Duty Land Tax (SDLT), usually just referred to as stamp duty, is a transaction tax on property purchases that fall over a certain price. The amount of tax payable is based on the actual purchase price rather than the market value of the property.

At the time of writing, stamp duty is currently payable in England, and Northern Ireland. Different types of taxes apply to any property purchases made in Scotland or Wales.
 

How is stamp duty calculated?

Stamp duty on residential property purchases is charged on stepped rates according to the purchase price.

During the Government’s 2024 Autumn Budget it was announced that there will be changes to stamp duty from 1st April 2025.

When you are purchasing an additional property, there is a high rate of Stamp Duty imposed, this is 5% on top of the standard rate. Although, should the additional property be for your own personal use and you sell what was previously your main home within 3 years of purchasing the additional property you can claim back the higher rate you paid.

In order to do so, you must either be the buyer of the property charged at the higher rate of SDLT or be an acting agent for the main buyer.

Below we have highlighted the current stamp duty rates, including what you will pay when purchasing an additional property. The current rates last until 31st of March 2025 and after this they will be changing, we have also listed these changes below.

Current rates until 31st March 2025

For example, a home mover buying a property for £295,000 would pay:

Nothing on the first £250,000: £250,000 x 0% = £0

Plus 5% on the amount between £250,001 and £925,000: £45,000 x 5% = £2,250

Total stamp duty payable: £2,250

Changes starting from 1st April 2025

Stamp duty for first-time buyers

Following the Government’s 2024 Autumn budget it was also announced that there will be changes to stamp duty paid by first-time buyers too.

The next table summarises the changes to stamp duty for first-time buyer purchases up to £625,000 from 23rd September 2022. First-time buyers purchasing above £625,000, or for any property that is not for their own occupation, are not entitled to any stamp duty relief and will revert to the standard calculations as shown above.

Current rates until 31st March 2025 

Changes starting from 1st  April 2025

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