How Much Pay Stamp Duty When Buy A Property in UK?

 

Stamp duty is a tax paid by people buying property, although it varies slightly across the UK.

  • In England and Northern Ireland buyers pay 'Stamp Duty Land Tax' (SDLT).
  • In Scotland it's 'Land and Buildings Transaction Tax'.
  • In Wales buyers pay 'Land Transaction Tax'.

The amount handed to the government depends on where you are in the UK, and the price of the property.

Stamp duty (SDLT) applies if the property is over £250,000. This tax is also applicable to overseas buyers.

SDLT is charged on the whole amount and is rounded down to the nearest £1.

Since 4th December 2014, you only pay the rate of tax on the part of the property price within each tax band.

From April 2016, an additional 3% stamp duty must be paid on second homes and buy-to-let properties.

From November 2017, first-time buyers will pay zero stamp duty on the first £300,000 of any home costing up to £500,000 (and only 5% on any proportion between £300k and £500k).

From July 8th 2020, a 'stamp duty holiday' was announced aimed at helping buyers whose finances were affected by Covid and boosting a property market hit by lockdown. More details below.

From September 23rd 2022, a 'mini-budget' was announced which included amendments to stamp duty rates. More details below.

What are the stamp duty rates?

The freehold residential stamp duty rates in England and Northern Ireland are shown in the tables below showing stamp duty rates from 23rd September 2022.

Property price Standard rate Buy-to-let/second home rate less than £250k0% 3%£250k to £925k5% 8%£925k to £1.5m10% 13% over £1.5m12%15%

* An additional property purchased for less than £40k will attract 0% tax. For purchases from £40k to £250k the SDLT rate will be 3% on full purchase price.

Always check with your solicitor before you buy and ensure you know the latest legislation.

First time buyers

 

First time buyer relief is available for property purchases below specific thresholds. First time buyers will not pay any stamp duty on property purchases below £425,000 with further relief available for transactions up to £625,000.

Buy to let & second homes

Stamp duty rates have increased for anyone purchasing an additional property. Additional property types include buy to let investments and second homes. Since April 2016, a 3% surcharge has been applied on top of the normal SDLT rate.

The higher stamp duty rates only apply to additional residential property. Land and other types of property are not normally considered when determining ownership of additional property for stamp duty purposes.

 

Stamp Duty Holiday

The stamp duty holiday was introduced which increased the stamp duty threshold to £500,000 for property sales in England and Northern Ireland, until 30 June 2021.

This meant anyone (including first-time buyers, buy-to-let and foreign buyers) completing on a main residence costing up to £500,000 between 8th July 2020 and 30th June 2021 had no stamp duty to pay.

The stamp duty holiday came to an end on 30th June 2021 however, until the end of September 2021, there was a staggered return to the previous stamp duty rates. From 1st October 2021, stamp duty returned to normal (pre-Covid).

 

The Mini Budget on 23rd September 2022

A mini-budget was announced on 23rd September 2022 where there were 3 main amendments:

  • No duty on first £250,000 of property's value, up from £125,000
  • For first time buyers, there will be no duty on the first £425,000 of property's value, up from £300,000
  • For first time buyers, relief will be applicable to properties worth up to £625,000, compared with the current £500,000.

From 1st April 2025, there will be several changes coming into effect:

  • The nil rate threshold which is currently £250,000 will return to the previous level of £125,000.
  • The nil rate threshold for first-time buyers which is currently £425,000 will return to the previous level of £300,000.
  • The maximum purchase price for which First-Time Buyers Relief (a reduced stamp duty rate) can be claimed is currently £625,000 and will return to the previous level of £500,000.

How do I pay Stamp Duty?

Typically, your Solicitor will assist you with Stamp Duty payments.

When is Stamp Duty paid?

Stamp duty now must be paid to the HMRC within 14 days of the date of completion. The 14 day period for submitting a stamp duty return has been effective from March 2019 and has been reduced from 30 days.

Your solicitor or legal adviser should take care of this for you and ensure you don't miss the deadline.

Latest Update Stump Duty - 2025

Residential property rates

You usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price when you buy residential property, for example a house or flat.

The amount you pay depends on:

Find out more about previous SDLT thresholds and rates for residential properties.

Rates for a single property

You pay SDLT at these rates if, after buying the property, it is the only residential property you own. You usually pay 5% on top of these rates if you own another residential property.

Rates up to 31 March 2025

Property or lease premium or transfer value SDLT rate Up to £250,000 Zero The next £675,000 (the portion from £250,001 to £925,000)5%The next £575,000 (the portion from £925,001 to £1.5 million)10%The remaining amount (the portion above £1.5 million)12%

Example

In October 2024 you buy a house for £295,000. The SDLT you owe will be calculated as follows:

  • 0% on the first £250,000 = £0
  • 5% on the final £45,000 = £2,250
  • total SDLT = £2,250

Rates from 1 April 2025

Property or lease premium or transfer value SDLT rate Up to £125,000 Zero The next £125,000 (the portion from £125,001 to £250,000)2%The next £675,000 (the portion from £250,001 to £925,000)5%The next £575,000 (the portion from £925,001 to £1.5 million)10%The remaining amount (the portion above £1.5 million)12%

Example

In April 2025 you buy a house for £295,000. The SDLT you owe will be calculated as follows:

  • 0% on the first £125,000 = £0
  • 2% on the second £125,000 = £2,500
  • 5% on the final £45,000 = £2,250
  • total SDLT = £4,750

New leasehold sales and transfers

When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the ‘lease premium’) using the rates above.

If the total rent over the life of the lease (known as the ‘net present value’) is more than the SDLT threshold (currently £250,000), you’ll pay SDLT at 1% on the portion over £250,000.

From 1 April 2025 the SDLT threshold will change to £125,000.

This does not apply to existing (‘assigned’) leases.

You can work out how much SDLT you’ll pay for your residential lease using HMRC’s:

If you’re buying your first home

You can claim a discount (relief) if the property you buy is your first home. You’re eligible if you and anyone else you’re buying with are first-time buyers.

The discount you can claim depends on when you purchase the property.

Discount up to 31 March 2025

You’ll pay: 

  • no SDLT up to £425,000
  • 5% SDLT on the portion from £425,001 to £625,000

If the price is over £625,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before.

Example

You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:

  • 0% on the first £425,000 = £0
  • 5% on the remaining £75,000 = £3,750
  • total SDLT = £3,750

Discount from 1 April 2025

You’ll pay:

  • no SDLT up to £300,000
  • 5% SDLT on the portion from £300,001 to £500,000

If the price is over £500,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before.

Example

You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:

  • 0% on the first £300,000 = £0
  • 5% on the remaining £200,000 = £10,000
  • total SDLT = £10,000

Higher rates for additional properties

You’ll usually have to pay 5% on top of SDLT rates if buying a new residential property means you’ll own more than one.

If you’re replacing your main residence

You will not pay the extra 5% SDLT if the property you’re buying is replacing your main residence and that has already been sold.

If you have not sold your main residence on the day you complete your new purchase you’ll have to pay higher rates. This is because you own 2 properties.

You can apply for a refund if you sell your previous main home within 36 months.

If it takes longer than 36 months to sell your previous main home

You may still be able to get a refund of the extra 5% SDLT if all of the following apply:

  • you purchased your new home on or after 1 January 2017
  • exceptional circumstances stopped you from selling your old home, for example government restrictions because of coronavirus (COVID-19) or a public authority blocking the sale
  • you have now sold your old home

To claim a refund, write to HMRC and explain why the sale took longer than 36 months.

Include:

  • your details
  • details of the main buyer - if different to your own
  • details of the exceptional circumstances that prevented the sale of your property
  • details of the property where higher rate SDLT was paid - including the address, date of purchase and SDLTunique transaction reference number
  • details of the previous main residence - including the address, date of sale and SDLT unique transaction reference number
  • the amount of higher rate SDLT paid
  • the amount of tax you’re asking for a repayment of
  • a bank account and sort code for the person receiving the payment

Rates if you’re not a UK resident

If you’re not present in the UK for at least 183 days (6 months) during the 12 months before your purchase you are ‘not a UK resident’ for the purposes of SDLT.

You’ll usually pay a 2% surcharge if you’re buying a residential property in England or Northern Ireland.

You may not have to pay a surcharge on certain properties, transactions or if you’re a particular type of buyer. Check the rules on who has to pay the surcharge, when you do not have to pay, and if you can claim relief.

If you have to pay the surcharge, you’ll also have to pay any other rates of SDLT that apply, for example:

  • if you already own a property and you’re buying an additional property
  • if you’re a first-time buyer

Use the SDLT calculator to work out how much tax you’ll pay.