Stamp Duty Explained: How Much Will You Pay in 2025?
A clear breakdown of current SDLT rates, first-time buyer relief, and the additional property surcharge so you can budget with confidence.
Brett
Mortgage Adviser
Stamp Duty Land Tax (SDLT) is the tax you pay to HM Revenue & Customs when you buy a residential property or piece of land over a certain price in England and Northern Ireland. Scotland and Wales have their own equivalents — the Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) respectively — but the principles are broadly similar. For most buyers the stamp duty bill is one of the largest upfront costs after the deposit itself, so understanding exactly how it is calculated, when relief is available, and what strategies exist to minimise it is essential to budgeting accurately for your move.
The SDLT system works on a tiered basis, much like income tax. You do not pay a single flat rate on the entire purchase price; instead, each portion of the price that falls within a particular band is taxed at the rate for that band. This means the effective rate you pay is always lower than the headline rate for the highest band your purchase reaches. Since April 2025 the thresholds reverted to their pre-September 2022 levels after the temporary increases introduced by the previous government expired, so it is important to work with the current figures rather than older ones you may find on the internet.
In this guide we walk through the standard residential SDLT bands for 2025, explain first-time buyer relief (including who qualifies and what the savings look like), cover the 5% additional property surcharge for second homes and buy-to-let purchases, and provide worked examples at common price points so you can see exactly what you would owe. We also link to our free stamp duty calculator so you can plug in your own numbers in seconds.
Current SDLT bands for 2025
Since 1 April 2025 the standard residential SDLT thresholds in England and Northern Ireland are as follows. The system is tiered, so you only pay each rate on the portion of the price that falls within that band — not on the whole purchase price. Use our stamp duty calculator to get an instant breakdown for your purchase price.
Standard SDLT rates (2025)
0%
Up to £125,000
No tax on the first £125k
2%
£125,001 – £250,000
Payable on this portion only
5%
£250,001 – £925,000
Most buyers hit this band
10%
£925,001 – £1.5m
Higher-value properties
Anything above £1,500,000
The portion of the purchase price above £1,500,000 is taxed at 12%. This only applies to the slice above that threshold, not the entire price.
Stamp Duty Calculator
This calculator provides estimates only. For personalised advice, speak to an adviser.
First-time buyer relief
If you are a first-time buyer purchasing a property for £625,000 or less you benefit from a higher nil-rate band. You pay no stamp duty on the first £300,000 and 5% on the portion from £300,001 to £625,000. If the price exceeds £625,000 the relief is lost entirely and you pay at the standard rates.
To qualify, none of the purchasers can have previously owned a residential property anywhere in the world. This includes inherited property you have lived in. Joint buyers must both be first-time buyers for the relief to apply. Read our guide to first-time buyer mortgages for more on eligibility and available schemes.
SDLT on a £425,000 property
First-time buyer
- £0 on first £300,000
- 5% on £125,000 = £6,250
- Total SDLT: £6,250
- Saving of £6,250 vs standard rates
Standard buyer
- £0 on first £125,000
- 2% on £125,000 = £2,500
- 5% on £175,000 = £8,750
- Total SDLT: £11,250
Additional property surcharge
If you already own a residential property and you are buying an additional one — whether that is a buy-to-let investment, a holiday home, or simply a second property — you must pay a 5% surcharge on top of the standard SDLT rates. This surcharge applies to the entire purchase price, starting from the first pound.
The surcharge also applies if you are replacing your main residence but have not yet sold your previous home at the point of completion. In that scenario you can claim a refund of the surcharge if you sell the old property within 36 months. Our moving home guide explains how to coordinate your sale and purchase.
The surcharge adds up quickly
On a £300,000 buy-to-let purchase the standard SDLT would be £5,000. With the 5% additional property surcharge the total rises to £20,000 — an extra £15,000. Always factor this into your investment calculations.
Surcharge impact at common price points
£10,000
£200k property
Standard: £1,500 | With surcharge: £11,500
£20,000
£300k property
Standard: £5,000 | With surcharge: £20,000
£32,500
£400k property
Standard: £12,500 | With surcharge: £32,500
Not sure where you stand?
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Worked examples at common price points
Seeing real numbers makes SDLT much easier to understand. Below are calculations for three common UK purchase prices using the standard 2025 bands. Remember, first-time buyers purchasing at £625,000 or below will pay less than these figures thanks to the enhanced nil-rate band.
“The effective SDLT rate is always lower than the headline rate for your highest band. On a £450,000 purchase you pay just 2.78%, not 5%.”
Ways to reduce your stamp duty bill
While you cannot avoid stamp duty altogether on properties above the nil-rate threshold, there are legitimate strategies that can reduce the amount you pay. It is worth factoring SDLT into your overall budget alongside your deposit and borrowing amount.
Claim first-time buyer relief
- No SDLT on the first £300,000 (up to £625,000 purchase price). This alone can save you up to £6,250.
Negotiate the price just below a threshold
- Even a small price reduction that keeps you in a lower band can save hundreds. Use our calculator to test different figures.
Separate fixtures and fittings
- If the seller is including items like carpets, curtains, or fitted appliances, these can be valued separately and excluded from the SDLT calculation. The valuation must be genuine and reasonable.
Transfer property between spouses
- Transfers between married couples or civil partners are generally exempt from SDLT, which can be useful when restructuring property ownership.
Claim the surcharge refund
- If you paid the additional property surcharge because you had not yet sold your previous home, you can reclaim it within 36 months of the new purchase.
Calculate your stamp duty now
The quickest way to find out exactly what you will owe is to use our free stamp duty calculator. It covers standard purchases, first-time buyer relief, and additional property surcharges. You can also use our repayment calculator to see how SDLT affects your total borrowing costs.
Budget for all upfront costs
Stamp duty is just one part of your buying costs. Do not forget solicitor fees (£1,000–£2,000), survey costs (£300–£1,500), and mortgage arrangement fees. A broker can help you map out the full picture.
First-Time Buyer Guide
Everything first-time buyers need to know — including stamp duty relief that could save you thousands.
Buy-to-Let Guide
Understand the 5% additional property surcharge and other costs of investing in rental property.
How Much Can I Borrow?
Factor stamp duty into your total budget by knowing exactly how much mortgage lenders will offer.
A Guide to Moving Home Mortgages
Coordinate your sale and purchase to avoid unnecessary stamp duty surcharges.
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Self-Employed
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Emma Collins
Buy-to-Let Investor
“Selling and buying at the same time felt overwhelming, but Clearview coordinated everything with our solicitor and estate agent. They even helped us port our existing deal. Brilliant service from start to finish.”
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Moving Home
“I had a CCJ from years ago and thought I’d never get a mortgage. Clearview matched me with a specialist lender and I’m now a homeowner. They treated me with respect and never judged my situation.”
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Bad Credit Mortgage
“Clearview made the whole mortgage process so much less stressful. Ali explained every step, found us a rate we didn’t think was possible, and kept us updated throughout. We completed in just five weeks.”
Sarah Mitchell
First-Time Buyer
“We were on our lender’s SVR paying way too much. Clearview found us a fixed deal that saved us over £300 a month. The whole switch was handled for us — couldn’t recommend them enough.”
James & Priya Patel
Remortgage
“As a contractor I’d been turned down twice before. Clearview knew exactly which lenders to approach and how to present my income. Got approved first time with a great rate. Absolute lifesavers.”
David Thompson
Self-Employed
“I’ve used Clearview for three BTL purchases now. They understand the portfolio landlord criteria inside out and always find competitive products. Professional, fast, and genuinely knowledgeable.”
Emma Collins
Buy-to-Let Investor
“Selling and buying at the same time felt overwhelming, but Clearview coordinated everything with our solicitor and estate agent. They even helped us port our existing deal. Brilliant service from start to finish.”
Michael & Laura Reed
Moving Home
“I had a CCJ from years ago and thought I’d never get a mortgage. Clearview matched me with a specialist lender and I’m now a homeowner. They treated me with respect and never judged my situation.”
Rachel Okonkwo
Bad Credit Mortgage
“Clearview made the whole mortgage process so much less stressful. Ali explained every step, found us a rate we didn’t think was possible, and kept us updated throughout. We completed in just five weeks.”
Sarah Mitchell
First-Time Buyer
“We were on our lender’s SVR paying way too much. Clearview found us a fixed deal that saved us over £300 a month. The whole switch was handled for us — couldn’t recommend them enough.”
James & Priya Patel
Remortgage
“As a contractor I’d been turned down twice before. Clearview knew exactly which lenders to approach and how to present my income. Got approved first time with a great rate. Absolute lifesavers.”
David Thompson
Self-Employed
“I’ve used Clearview for three BTL purchases now. They understand the portfolio landlord criteria inside out and always find competitive products. Professional, fast, and genuinely knowledgeable.”
Emma Collins
Buy-to-Let Investor
“Selling and buying at the same time felt overwhelming, but Clearview coordinated everything with our solicitor and estate agent. They even helped us port our existing deal. Brilliant service from start to finish.”
Michael & Laura Reed
Moving Home
“I had a CCJ from years ago and thought I’d never get a mortgage. Clearview matched me with a specialist lender and I’m now a homeowner. They treated me with respect and never judged my situation.”
Rachel Okonkwo
Bad Credit Mortgage
“Clearview made the whole mortgage process so much less stressful. Ali explained every step, found us a rate we didn’t think was possible, and kept us updated throughout. We completed in just five weeks.”
Sarah Mitchell
First-Time Buyer
“We were on our lender’s SVR paying way too much. Clearview found us a fixed deal that saved us over £300 a month. The whole switch was handled for us — couldn’t recommend them enough.”
James & Priya Patel
Remortgage
“As a contractor I’d been turned down twice before. Clearview knew exactly which lenders to approach and how to present my income. Got approved first time with a great rate. Absolute lifesavers.”
David Thompson
Self-Employed
“I’ve used Clearview for three BTL purchases now. They understand the portfolio landlord criteria inside out and always find competitive products. Professional, fast, and genuinely knowledgeable.”
Emma Collins
Buy-to-Let Investor
“Selling and buying at the same time felt overwhelming, but Clearview coordinated everything with our solicitor and estate agent. They even helped us port our existing deal. Brilliant service from start to finish.”
Michael & Laura Reed
Moving Home
“I had a CCJ from years ago and thought I’d never get a mortgage. Clearview matched me with a specialist lender and I’m now a homeowner. They treated me with respect and never judged my situation.”
Rachel Okonkwo
Bad Credit Mortgage
Your next steps
Continue Your Mortgage Journey
Now you understand LTV, here are the next steps to getting the best mortgage deal.
Understand SDLT
You’re here — learn how stamp duty bands work, what relief is available, and what you will owe.
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Calculate Your Bill
Use our free stamp duty calculator to get an instant breakdown for your purchase price.
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Budget Your Purchase
Factor SDLT into your total costs alongside deposit, fees, and monthly repayments using our repayment calculator.
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Speak to an Adviser
A Clearview broker will help you plan the full cost of buying and find the best mortgage deal from 90+ lenders.
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