Stamp Duty Land Tax (SDLT) is one of those things homebuyers often hear about late in the process and usually right when they’re already stressed about everything else. Below is a clear, people-first walkthrough of the most common questions, how the rules work, and what changes on 1 April 2025.
What is stamp duty?
Stamp Duty Land Tax (SDLT) is a tax you pay when you buy a residential property in England or Northern Ireland. It applies once the purchase price goes above certain thresholds. Wales and Scotland use different systems (explained below).
What is the stamp duty threshold?
From 1 April 2025, stamp duty becomes payable once the property price goes over £125,000.
Different rules apply if you’re a first-time buyer or if you already own another property. The tax is always calculated in “slices”, you pay a different rate for each portion of the price.
How much stamp duty do home movers pay?
For buyers who are not first-time buyers and are buying their main home, these are the standard SDLT bands from April 2025:
- 0% on the first £125,000
- 5% on the portion between £125,001–£250,000
- 5% on the portion between £250,001–£925,000
- 10% on the portion between £925,001–£1.5 million
- 12% on anything above £1.5 million
Your conveyancer will calculate the exact bill based on the final purchase price.
Do first-time buyers pay stamp duty?
Many first-time buyers qualify for first-time buyer relief (FTBR) from April 2025:
- £0 SDLT if the property price is under £300,000
- 5% on the portion over £300,000 up to £500,000
- If the purchase price is over £500,000, FTBR doesn’t apply at all.
- You pay the standard rates instead.
To qualify, you must never have owned a property anywhere in the world.
How much is stamp duty on second homes?
If you already own a main residence and buy another property (holiday home, investment property, etc.), you’ll pay an additional 5% surcharge on top of the standard rates.
This higher rate applies from 31 October 2024.
Band structure for second homes:
- 5% on the first £250,000
- 10% on £250,001–£925,000
- 15% on £925,001–£1.5 million
- 17% on anything above £1.5 million
Caravans, mobile homes and houseboats aren’t subject to SDLT.
Do non-UK residents pay extra stamp duty?
Yes. Non-UK residents usually pay an additional 2% surcharge on the entire property value.
You’re classed as non-resident if you’ve spent fewer than 183 days in the UK in the 12 months before the purchase.
This surcharge applies even if you also pay the second-home surcharge.
Is stamp duty paid on non-residential property?
Yes. Non-residential and mixed-use properties (shops, offices, farmland, flats above shops, etc.) follow different rates:
Freehold or lease premium:
- 0% on the first £125,000
- 2% on £125,001–£250,000
- 5% on anything above £250,000
Leasehold rent (NPV) charges:
- 0% if NPV is under £150,000
- 1% on £150,001–£5 million
- 2% on anything above £5 million
Do I pay stamp duty when gifting or inheriting a property?
It depends:
- Inheritance: SDLT is not payable if you inherit a property through a will.
- Gifts with no mortgage: No SDLT is due.
- Gifts with a mortgage: You may pay SDLT on the outstanding mortgage amount you take on.
- Divorce or civil partnership dissolution: Transfers under a court order normally attract no SDLT.
For gifts, keep inheritance tax rules in mind, especially the seven-year rule.
Can I get a refund on higher-rate stamp duty?
Yes. If you bought your new home before selling your old one, you’ll have paid the higher rate for owning two properties.
If you sell your previous main residence within 36 months, you can claim a refund of the surcharge.
When does stamp duty need to be paid?
You have 14 days after completion to file the SDLT return and pay whatever is due.
Your conveyancer usually handles this, but you remain legally responsible for it being filed on time.
How do I pay stamp duty?
Your conveyancer submits the SDLT return and arranges payment to HMRC.
Even if no SDLT is due, a return still needs to be filed.
What is stamp duty in Wales?
Wales no longer uses SDLT.
You’ll pay Land Transaction Tax (LTT) instead, directly to the Welsh Government.
What is stamp duty in Scotland?
Scotland uses Land and Buildings Transaction Tax (LBTT) instead of SDLT.
Can stamp duty be paid in instalments?
No. SDLT must be paid in full within 14 days of completion.
Can I add stamp duty to my mortgage?
Sometimes. Some lenders allow it, but:
- You must pass affordability checks
- It increases your loan-to-value (LTV)
- You’ll pay interest on the SDLT amount for the full mortgage term
- A higher LTV might mean a higher interest rate overall
Are there penalties for paying stamp duty late?
Yes. HMRC charges penalties if the return is filed late:
- Up to 12 months late: 10% of the duty (capped at £300)
- 12–24 months late: 20%
- Over 24 months late: 30%
Interest is also charged on unpaid tax.
Need help choosing a conveyancer?
If you’re unsure what SDLT applies to your situation, a good conveyancer will walk you through the numbers before you exchange contracts.
Share a few details about your purchase, and our UK Property Looker assistant will help you find qualified conveyancers who can handle your purchase smoothly.