Stamp Duty Explained: Bands, First-Time Buyer Relief and Surcharges

Stamp Duty Land Tax (SDLT) is paid when you buy a residential property or land in England or Northern Ireland above certain price thresholds. Scotland and Wales have their own taxes, so an English estimate does not apply there.

It is charged in slices

SDLT is not a single percentage of the price. Each slice of the price is taxed at its band’s rate. On a £300,000 home bought by someone who already owns a property, the first £125,000 is taxed at 0%, the next £125,000 at 2% and the remaining £50,000 at 5%, which comes to £5,000.

The rates from 1 April 2025

First-time buyer relief

First-time buyers pay 0% on the first £300,000 and 5% from £300,001 to £500,000. To qualify, everyone buying must be a first-time buyer, and the home must cost £500,000 or less. If the price is even £1 over £500,000, the relief is lost entirely and standard rates apply to the whole amount, so the tax bill jumps sharply at that point.

Second homes and buy-to-let

Buying an additional residential property attracts a surcharge of 5% of the entire price on top of the normal bands. Replacing your main home is generally not treated as an additional property, but timing rules apply if you buy before selling, so ask your conveyancer.

Non-UK resident surcharge

A further 2% applies to purchases by buyers who are not UK resident for SDLT. The rules for residence are separate from income tax residence.

Timing and paying

The SDLT return and payment are normally due within 14 days of completion. Conveyancers usually file and pay on your behalf as part of the purchase, so the amount is typically included in the funds you send them.

Check before you rely on it

Rates and reliefs can change in a Budget. Always confirm the current figures on GOV.UK and with your solicitor before exchanging contracts.