What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a tax you pay on property purchases above £250,000 in England and Northern Ireland, with first-time buyers exempt from Stamp Duty on purchases up to £425,000.
The amount of tax payable is based on the actual purchase price, rather than the market value of the property.
How much is Stamp Duty?
As mentioned above, the current rates will last up until 31st March 2025. These changes are happening following an announcement during the Government’s 2024 Autumn Budget.
The current rates up until 31st March 2025:
| Property or lease premium or transfer value | Stamp Duty Rate |
| Up to £250,000 | zero |
| The portion from £250,001 – £925,000 | 5% |
| The portion from £925,001 – £1,500,000 | 10% |
| The remaining amount (the portion above £1,500,001) | 12% |
| Property or lease premium or transfer value | Stamp Duty Rate |
| Up to £125,000 | zero |
| The portion from £125,001 – £250,000 | 2% |
| The portion from £250,001 – £925,000 | 5% |
| The portion from £925,001 – £1.5 million | 10% |
| The remaining amount (the portion above £1,500,001) | 12% |
If you want an idea of what rate you will pay before or after these changes, why not give our free Stamp Duty calculator a go.
Stamp Duty for first-time buyers
In order to qualify for first-time buyer Stamp Duty rates, everyone involved in the property purchase will need to be first-time buyers. For example, if you are in a relationship and only one of you is a first-time buyer, you will have to pay standard rates.
Like the standard Stamp Duty rates, first-time buyer rates will also be changing after 31st March 2025.
The current first-time buyer rates up until 31st March 2025:
| Property or lease premium or transfer value | Stamp Duty Rate |
| Up to £425,000 | 0% |
| The portion from £425,001 – £625,000 | 5% |
| Property or lease premium or transfer value | Stamp Duty Rate |
| Up to £300,000 | 0% |
| The portion from £300,001 – £500,000 | 5% |
Stamp Duty on additional property purchases
When buying an additional property, to rent out for example, you will also need to pay Stamp Duty, and the rate you will be charged will be higher than the standard rate.
Although, you can claim the higher rate back if you were to sell what was previously your main residence within 3 years of purchasing a second property. Claims must be made within 3 months of you selling your previous main residence.
The current additional property rates up until 31st March 2025:
| Property or lease premium or transfer value | Stamp Duty Rate |
| Up to £250,000 | 5% |
| The portion from £250,001 – £925,000 | 10% |
| The portion from £925,001 – £1,500,000 | 15% |
| The remaining amount (the portion above £1,500,001) | 17% |
| Property or lease premium or transfer value | Stamp Duty Rate |
| Up to £125,000 | 5% |
| The portion from £125,001 – £250,000 | 7% |
| The portion from £250,001 – £925,000 | 10% |
| The portion from £925,001 – £1.5 million | 15% |
| The remaining amount (the portion above £1,500,001) | 17% |
Are there any Stamp Duty exemptions?
There are certain exemptions that may apply to you, and they include:
- if no money or other payment changes hands for a land or property transfer. This essentially means if the property was gifted to you, you wont have to pay SDLT.
- if the property is left to you in a will
- if the property is transferred because of divorce or dissolution of a civil partnership
- if you purchase a freehold property for less than £40,000
- if you purchase a new or assigned lease of 7 years or more, as long as the premium is less than £40,000 and the annual rent is less than £1,000
- if you purchase a new or assigned lease of less than 7 years, as long as the amount you pay is less than the residential threshold or non-residential threshold of SDLT
- if you use alternative property financial arrangements, for example to comply with Sharia law.
If you are unsure about anything to do with Stamp Duty, feel free to reach out today and one of our expert advisors will be on hand to support you.
You can also visit the Government website with its up-to-date information you know you can trust, to help clear up any confusion.
