Stamp duty explained: What you pay, when, and why it changes by buyer type

Stamp duty is a tax you pay to the government when you buy a property in England or Northern Ireland. The amount depends on the purchase price but also on who you are as a buyer. A first-time buyer, a home mover, and someone purchasing a second property can all pay very different amounts on the exact same house.

This guide explains how it works, what the current rates are, and where to calculate your figure before you make an offer.

What stamp duty is

The full name is Stamp Duty Land Tax (SDLT). It applies to residential property purchases in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT). The rates and thresholds differ, so if you’re buying outside of England or Northern Ireland, you’ll need to check the rules for that nation separately.

SDLT is paid on a tiered basis. You don’t pay the same rate on the entire purchase price you pay each rate only on the portion of the price that falls within each band. It works the same way income tax does.

The Standard Rates (From 1 April 2025)

The temporary stamp duty relief that was in place between September 2022 and March 2025 has now ended. The thresholds have reverted to the standard rates.

Standard rates for home movers (England & Northern Ireland):

Standard Rates (Home Movers)
<table>
<thead>
<tr>
<th>Purchase price</th>
<th>SDLT rate</th>
</tr>
</thead>
<tbody>
<tr><td>Up to £125,000</td><td>0%</td></tr>
<tr><td>£125,001 to £250,000</td><td>2%</td></tr>
<tr><td>£250,001 to £925,000</td><td>5%</td></tr>
<tr><td>£925,001 to £1,500,000</td><td>10%</td></tr>
<tr><td>Over £1,500,000</td><td>12%</td></tr>
</tbody>
</table>

First-Time Buyer Rates
<table>
<thead>
<tr>
<th>Purchase price</th>
<th>SDLT rate</th>
</tr>
</thead>
<tbody>
<tr><td>Up to £300,000</td><td>0%</td></tr>
<tr><td>£300,001 to £500,000</td><td>5%</td></tr>
<tr><td>Over £500,000</td><td>Standard rates apply (no relief)</td></tr>
</tbody>
</table>

Additional Property Rates
<table>
<thead>
<tr>
<th>Purchase price</th>
<th>SDLT rate</th>
</tr>
</thead>
<tbody>
<tr><td>Up to £125,000</td><td>3%</td></tr>
<tr><td>£125,001 to £250,000</td><td>5%</td></tr>
<tr><td>£250,001 to £925,000</td><td>8%</td></tr>
<tr><td>£925,001 to £1,500,000</td><td>13%</td></tr>
<tr><td>Over £1,500,000</td><td>15%</td></tr>
</tbody>
</table>

Why It Changes by Buyer Type

The rate you pay isn’t just about the price, it’s about your circumstances. HMRC applies different rules depending on whether you’re buying for the first time, moving home, or adding to a property portfolio.

First-Time Buyers

First-time buyers pay less — but only up to a point.

First-time buyer rates (from 1 April 2025):
<table>
<thead>
<tr>
<th>Purchase price</th>
<th>SDLT rate</th>
</tr>
</thead>
<tbody>
<tr><td>Up to £300,000</td><td>0%</td></tr>
<tr><td>£300,001 to £500,000</td><td>5%</td></tr>
<tr><td>Over £500,000</td><td>Standard rates apply (no relief)</td></tr>
</tbody>
</table>

If you're buying a property for £450,000 as a first-time buyer, you'd pay 0% on the first £300,000 and 5% on the remaining £150,000, a bill of £7,500. The same property as a home mover would cost £12,500 in stamp duty.

The relief drops away entirely above £500,000. At that price point, first-time buyers pay standard rates on the full amount.

To qualify, you must never have owned a residential property before ---
in the UK or abroad. If you're buying with someone else, both of you
need to be first-time buyers for the relief to apply.

Home Movers

If you've owned a property before and are buying your next main residence, standard rates apply. There's no additional relief, and no surcharge, provided you're replacing your main home.

If you're selling your current home and buying a new one, and the sale completes before or on the same day as the purchase, you pay standard rates. If the timings don't align and you briefly own two properties at once, the surcharge can apply, though HMRC does allow you to claim it back once the original home is sold, within 12 months of the purchase completing.

Additional Property Buyers

If you're buying a second home, a buy-to-let property, or any residential property that isn't your main residence, a 3% surcharge applies on top of the standard rates across every band.

Additional property rates (from 1 April 2025):

<table>
<thead>
<tr>
<th>Purchase price</th>
<th>SDLT rate</th>
</tr>
</thead>
<tbody>
<tr><td>Up to £125,000</td><td>3%</td></tr>
<tr><td>£125,001 to £250,000</td><td>5%</td></tr>
<tr><td>£250,001 to £925,000</td><td>8%</td></tr>
<tr><td>£925,001 to £1,500,000</td><td>13%</td></tr>
<tr><td>Over £1,500,000</td><td>15%</td></tr>
</tbody>
</table>

On a £250,000 buy-to-let purchase, a standard home mover would pay £2,500. An additional property buyer would pay £10,000. That difference is significant enough to affect whether some purchases stack up financially.

Overseas Buyers

Non-UK residents purchasing property in England or Northern Ireland pay an additional 2% surcharge on top of whichever standard or additional-property rates apply. This applies regardless of whether the buyer is a first-time buyer or home mover.

When You Pay

Stamp duty is due within 14 days of completion. Your conveyancer will typically handle the filing and payment on your behalf, it's built into the process, but the liability is yours. If there's a delay or error, HMRC will pursue the buyer, not the solicitor.

The 14-day window is tight. It's worth confirming with your solicitor well before completion that they have everything they need to file on time.

What Stamp Duty Doesn't Cover

A few things worth knowing:

• Stamp duty is not refundable if the sale falls through after completion. If contracts are exchanged and the purchase completes, the tax is owed regardless of what happens later.
• It's not negotiable. Unlike solicitor fees or survey costs, SDLT is a fixed tax. The only variables are your buyer type and the purchase price.
• It doesn't apply to the first property in a chain that's under the nil-rate threshold but this is less relevant now that the nil-rate threshold is back to £125,000.

Work Out Your Figure

The rates above give you the framework, but the exact number depends on
your price, your buyer type, and whether surcharges apply. Rather than
working through the bands manually, use the stamp duty calculator to get
an instant breakdown.

[Calculate your stamp duty
→]

It covers standard purchases, first-time buyer relief, additional
property surcharges, and the overseas buyer surcharge.

The Bottom Line

Stamp duty is predictable. You can calculate it precisely at any point in the
process. The mistake most buyers make is not doing that calculation
early enough.

A £400,000 purchase as a first-time buyer costs £5,000 in stamp duty.
The same purchase as a home mover costs £10,000. As a buy-to-let
investor, £22,000. Those aren't marginal differences. They affect how
much deposit you need liquid on completion day.

Before you make an offer, know your number.

Is stamp duty the only upfront cost you've factored in or have you
also accounted for your legal fees, survey, and mortgage arrangement
costs?

*Rates shown apply from 1 April 2025 for England and Northern Ireland.
SDLT rates in Scotland (LBTT) and Wales (LTT) differ. This article is
for general information only and does not constitute tax or legal
advice. Always verify your position with a qualified adviser or HMRC
before completing a purchase.*