UK Stamp Duty Explained: Rates, Exemptions & How to Calculate

What is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a tax you pay when buying property or land in England and Northern Ireland above a certain price. Scotland has LBTT and Wales has LTT (different rates).

Current SDLT Rates (2024-25)

• £0 – £250,000: 0%
• £250,001 – £925,000: 5%
• £925,001 – £1,500,000: 10%
• Over £1,500,000: 12%

Important: Stamp duty is calculated on the portion within each band, not the entire price.

First-Time Buyer Relief

If you're buying your first home for £625,000 or less:

• 0% on the first £425,000
• 5% on the portion from £425,001 to £625,000

If the property costs more than £625,000, you pay standard rates with no relief.

Additional Property Surcharge

Buying a second home, buy-to-let, or additional property? You pay an extra 3% on top of standard rates for every band. This means even the first £250,000 is taxed at 3%.

Example: £450,000 Property

Standard buyer:

• First £250,000 at 0% = £0
• Remaining £200,000 at 5% = £10,000
• Total: £10,000

First-time buyer:

• First £425,000 at 0% = £0
• Remaining £25,000 at 5% = £1,250
• Total: £1,250 (saving £8,750!)