The 2025 stamp duty rates (post-March 2025 threshold reversion)
Important: The temporary stamp duty relief that was in place until 31 March 2025 has now ended. From 1 April 2025, the standard SDLT thresholds have reverted to their original levels:
- Up to £125,000: 0%
- £125,001–£250,000: 2%
- £250,001–£925,000: 5%
- £925,001–£1.5 million: 10%
- Over £1.5 million: 12%
SDLT is calculated on a slice basis — you pay the percentage for each slice of the property price, not the full rate on the total.
Worked example: £400,000 property purchase
Using the 2025 rates for a standard purchase:
- First £125,000 at 0% = £0
- Next £125,000 (£125,001–£250,000) at 2% = £2,500
- Remaining £150,000 (£250,001–£400,000) at 5% = £7,500
- Total SDLT = £10,000
First-time buyer relief in 2025
First-time buyers purchasing a property up to £625,000 benefit from reduced rates:
- First £425,000: 0% (increased from the pre-2022 £300,000 threshold — this relief remains in place)
- £425,001–£625,000: 5%
- No relief available for properties above £625,000
On the same £400,000 property, a first-time buyer pays £0 in stamp duty — saving £10,000 compared to a subsequent buyer. This represents a significant cash-flow benefit for those getting onto the property ladder.
Additional dwelling surcharge (3%)
If you already own a residential property anywhere in the world and are purchasing another, you pay an additional 3% surcharge on every slice of the SDLT calculation. On a £300,000 second home:
- Standard SDLT: £5,000
- 3% surcharge on full £300,000: £9,000
- Total: £14,000
The surcharge applies to landlords buying buy-to-let properties, people buying second homes, and anyone purchasing before selling their main residence. If you sell your main residence within 36 months, you can apply for a refund of the 3% surcharge.
Non-resident surcharge (2%)
From 1 April 2021, non-UK residents pay an additional 2% surcharge on top of standard rates. Combined with the additional dwelling surcharge, a non-UK resident investor buying a second property faces up to 17% on the top slice of a £1.5 million+ property.
When is stamp duty due?
SDLT must be paid and a return filed with HMRC within 14 days of completion. Your solicitor or conveyancer handles this as part of the conveyancing process. Failure to pay within 14 days results in automatic interest charges and penalties.
Scotland and Wales: different systems
Scotland: Scotland uses Land and Buildings Transaction Tax (LBTT) with different rates and thresholds. First-time buyer relief extends to £175,000. Use a specific LBTT calculator for Scottish purchases.
Wales: Wales uses Land Transaction Tax (LTT) with its own rate structure. The nil-rate threshold is £225,000 for standard residential purchases.