Stamp duty is the tax nobody budgets for properly — until they're three weeks from completion and their solicitor sends them a figure they weren't expecting. Here's the full picture for 2025.
What changed in April 2025
The temporary stamp duty relief introduced in 2022 ended on 31 March 2025. Two things changed for buyers completing from April 2025:
- The standard nil-rate threshold dropped from £250,000 back to £125,000
- The first-time buyer nil-rate threshold dropped from £425,000 to £300,000
That means buyers who completed just after the deadline paid significantly more than those who completed just before. Timing the market on stamp duty is rare — but it mattered in early 2025.
Current rates for standard buyers
- 0% — up to £125,000
- 2% — £125,001 to £250,000
- 5% — £250,001 to £925,000
- 10% — £925,001 to £1.5m
- 12% — above £1.5m
On a £300,000 purchase, that works out to: £0 on the first £125k + £2,500 on the next £125k + £2,500 on the final £50k = £5,000 total.
First-time buyers
First-time buyers pay 0% up to £300,000 and 5% on the portion from £300,001 to £500,000. Above £500,000, no first-time buyer relief applies — standard rates across the full purchase price.
On a £400,000 first purchase: 0% on the first £300k + 5% on £100k = £5,000. A standard buyer pays £10,000 on the same property. The relief is worth it.
Second homes and buy-to-let
An additional 3% surcharge applies on top of standard rates for any additional residential property. On a £250,000 buy-to-let: standard SDLT of £2,500 + 3% surcharge of £7,500 = £10,000 total.
The surcharge doesn't apply if you're selling your main home and buying a replacement within 3 years (you can claim a refund in some cases).
Get your exact figure
Use the stamp duty calculator to get the precise number for your purchase — including first-time buyer relief and second home surcharges. Know the total cost before you make an offer.