2025 UK Stamp Duty Explained: How Much Will You Pay When Buying a Home?

As of April 1, 2025, significant changes to Stamp Duty Land Tax (SDLT) in England and Northern Ireland have taken effect. Understanding these new rates is crucial for budgeting your home purchase effectively.

What is 2025 UK Stamp Duty?

The 2025 UK Stamp Duty Land Tax (SDLT) is a tax applied to property purchases in England and Northern Ireland. The amount of stamp duty you pay depends on the property price, your buyer status, and whether it is a primary residence or investment property.

New Stamp Duty Rates Effective April 1, 2025

The SDLT rates have been adjusted as follows:

For example, if you purchase a property for £295,000:

• 0% on the first £125,000 = £0

• 2% on the next £125,000 = £2,500

• 5% on the remaining £45,000 = £2,250

Total SDLT = £4,750

Updated First-Time Buyer Stamp Duty (April 2025)

First-time buyers now benefit from the following SDLT relief:

• Up to £300,000: 0%

• £300,001 to £500,000: 5% on the portion above £300,000

If the property price exceeds £500,000, standard rates apply without relief.

For instance, purchasing a first home for £400,000:

• 0% on the first £300,000 = £0

• 5% on the remaining £100,000 = £5,000

Total SDLT = £5,000

2025 April Stamp Duty on Buy-to-Let & Second Homes

For additional properties, such as additional property, second homes or buy-to-let investments, the surcharge changed from 3% to 5% on top of the standard rates:

Here's the Stamp Duty Land Tax (SDLT) breakdown for a £300,000 Buy-to-Let or Second Home purchase in 2025:

• The first £125,000 is taxed at 5%, which equals £6,250.

• The portion from £125,001 to £250,000 is taxed at 7%, which equals £8,750.

• The portion from £250,001 to £300,000 is taxed at 10%, which equals £5,000.

Total SDLT payable: £20,000

When Do You Need to Pay Stamp Duty?

Stamp duty must be paid within 14 days of completing your property purchase. Your solicitor or conveyancer usually handles this on your behalf to ensure compliance with HMRC.

Ways to Reduce Stamp Duty Costs

• Buy Below the Threshold: Purchasing a property under £125,000 avoids stamp duty.

• First-Time Buyer Relief: Take advantage of government incentives if you qualify.

• Transfer Between Spouses: Transferring property between spouses does not trigger stamp duty.

• Shared Ownership Schemes: Some government-backed schemes can reduce stamp duty liabilities.

Get Expert Mortgage Advice

Understanding stamp duty is just one part of budgeting for your home purchase. If you need expert guidance on mortgages and property-related costs, our team at Possible Mortgages is here to help. Visit our Contact Us page to speak with an advisor.

For more home-buying insights, check out our Knowledge Hub.

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