How Much Stamp Duty Will I Pay in 2025?
Stamp duty is one of the largest upfront costs of buying a home — yet it catches buyers off guard surprisingly often, especially now the temporary pandemic-era thresholds have ended. This guide covers the exact current rates for England, Scotland, and Wales, with four fully worked examples so you can calculate your own bill before you exchange.
How stamp duty actually works — the band system
Stamp duty is a marginal tax, not a flat rate. This is the single most important thing to understand, and the point most people get wrong. It works exactly like income tax bands: each band of the purchase price is taxed at its own rate, and only the slice of value that falls within a band is taxed at that rate.
For example, if you buy a house for £350,000 in England, you do not pay 5% on the entire £350,000. You pay 0% on the first £125,000, 2% on the next £125,000, and 5% only on the final £100,000 above £250,000. This distinction can mean thousands of pounds difference when buyers mistakenly assume the rate applies to the whole price.
Three separate tax systems apply depending on where the property is located:
- England and Northern Ireland: Stamp Duty Land Tax (SDLT), administered by HMRC
- Scotland: Land and Buildings Transaction Tax (LBTT), administered by Revenue Scotland
- Wales: Land Transaction Tax (LTT), administered by the Welsh Revenue Authority
The rules — including rates, reliefs, and deadlines — differ meaningfully between all three. The rest of this guide walks through each in turn.
England and Northern Ireland: SDLT rates from 1 April 2025
The temporary SDLT reductions introduced in September 2022 ended on 31 March 2025. The standard nil-rate threshold dropped from £250,000 back to £125,000, and the first-time buyer nil-rate dropped from £425,000 back to £300,000. Any figures from before April 2025 are now out of date.
Standard SDLT rates (home movers)
| Purchase price band | SDLT rate |
|---|---|
| £0 – £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Above £1,500,000 | 12% |
First-time buyer relief
First-time buyers in England and Northern Ireland get a reduced nil-rate band, which can save thousands compared with a standard purchase. From 1 April 2025, the first-time buyer rates are:
| Purchase price band | FTB SDLT rate |
|---|---|
| £0 – £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| Above £500,000 | Standard rates apply — no FTB relief |
The £500,000 cap: If the purchase price exceeds £500,000, first-time buyer relief is withdrawn entirely and standard rates apply from £0. Buying at £510,000 as a first-time buyer attracts exactly the same SDLT as a home mover at £510,000.
Every buyer must qualify: If there are multiple buyers on the deed (for example, a couple purchasing jointly), every single person must independently be a first-time buyer. One person having previously owned a property — even briefly, even jointly — disqualifies the entire purchase from relief.
For context: a home mover buying the same £280,000 property would pay 0% on the first £125,000 (£0) plus 2% on the remaining £155,000 (£3,100), for a total SDLT bill of £3,100. The FTB relief is worth the full £3,100 in this case.
If you are unsure whether you qualify, HMRC's definition is strict: you must never have owned a residential property anywhere in the world, whether purchased, inherited, or received as a gift. Use our mortgage affordability calculator to understand the full cost picture alongside your stamp duty bill.
The additional property surcharge
Buyers purchasing a second home, a buy-to-let property, or any residential property while already owning another must pay an additional 5% surcharge on top of every standard SDLT band. This applies from the first pound of the purchase price.
| Purchase price band | Standard rate | Additional property rate |
|---|---|---|
| £0 – £125,000 | 0% | 5% |
| £125,001 – £250,000 | 2% | 7% |
| £250,001 – £925,000 | 5% | 10% |
| £925,001 – £1,500,000 | 10% | 15% |
| Above £1,500,000 | 12% | 17% |
The surcharge transforms what would be a £7,500 bill into £25,000 — a difference that can materially affect investment yields and requires careful budgeting before exchange.
The three-year main home exception and refund window
If you are replacing your main residence, the surcharge does not apply — but only if you complete the sale of your old main home on the same day as or before the purchase of your new one. In practice, this means same-day completion or prior sale.
If you cannot sell your old home in time (for example, your chain breaks), you may be forced to pay the surcharge initially. However, HMRC allows you to claim a refund if you sell the previous main home within three years of the new purchase date. This refund must be actively claimed — it is not issued automatically.
If you are buying an additional property and wondering about the wider affordability impact, our rent vs buy calculator can help you model whether the purchase stacks up financially.
Scotland: Land and Buildings Transaction Tax (LBTT)
Scotland operates its own property transaction tax with different bands and rates. LBTT is administered by Revenue Scotland, not HMRC.
| Purchase price band | LBTT rate |
|---|---|
| £0 – £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Above £750,000 | 12% |
First-time buyer relief in Scotland extends the nil-rate band to £175,000, saving eligible buyers up to £600 compared with the standard LBTT calculation.
Additional Dwelling Supplement (ADS) applies to purchases of additional residential properties in Scotland. From 5 December 2024, the ADS rate is 8% applied to the full purchase price (not just the excess). This is a meaningful increase from the prior 6% rate, and means additional property purchases in Scotland are among the most heavily surcharged in the UK.
The payment deadline for LBTT is 30 days from the effective date of the transaction (usually the date of entry).
Wales: Land Transaction Tax (LTT)
Wales introduced its own property transaction tax in April 2018, replacing SDLT for Welsh purchases. LTT is administered by the Welsh Revenue Authority.
| Purchase price band | Main LTT rate |
|---|---|
| £0 – £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1,500,000 | 10% |
| Above £1,500,000 | 12% |
No first-time buyer relief exists in Wales. All buyers, regardless of whether they are purchasing for the first time, pay the same main rates shown above.
Higher rates for additional properties were updated from 11 December 2024. The higher residential rates in Wales are:
| Purchase price band | Higher LTT rate |
|---|---|
| £0 – £180,000 | 5% |
| £180,001 – £250,000 | 8.5% |
| £250,001 – £400,000 | 10% |
| £400,001 – £750,000 | 12.5% |
| £750,001 – £1,500,000 | 15% |
| Above £1,500,000 | 17% |
The payment deadline for LTT is 30 days from the effective date of the transaction.
When is stamp duty due?
The deadline depends on which country the property is located in:
- England and Northern Ireland (SDLT): 14 days from completion. HMRC has shortened this from 30 days; missing it can result in automatic penalties and interest.
- Scotland (LBTT): 30 days from the effective date of the transaction.
- Wales (LTT): 30 days from the effective date of the transaction.
In practice, your solicitor or conveyancer handles submission and payment on your behalf, deducting the amount from the completion monies you provide. However, you remain legally responsible for ensuring payment is made on time, so it is worth confirming your conveyancer has submitted the return before you hand over funds.
Common mistakes to avoid
Stamp duty errors are costly and often avoidable. These are the most common:
- Using the 2022–2025 temporary thresholds. Many online articles and calculators still quote the nil-rate threshold as £250,000 (standard) or £425,000 (FTB). Both reverted on 1 April 2025. Always check you are using figures dated after April 2025.
- Assuming Scottish or Welsh rates match England's. The nil-rate thresholds are different (£145,000 in Scotland, £225,000 in Wales), the band structures differ, and the additional property surcharges are calculated differently. Never apply English SDLT rates to a Scottish or Welsh purchase.
- Assuming FTB relief applies above £500,000. Above the £500,000 cap, first-time buyer relief is withdrawn entirely and standard rates apply from £0. Buyers near the threshold sometimes budget for FTB rates on a £510,000 purchase and are caught short at completion.
- Forgetting the additional property surcharge when buying before selling. If your existing home has not yet sold when you complete on the new one, the surcharge applies — even if you intend to sell within weeks. Budget for the surcharge and plan to reclaim it once you sell.
- Missing the three-year reclaim window. If you paid the surcharge and subsequently sold your previous main home within three years, you are entitled to a refund. This must be claimed; HMRC will not issue it automatically. Many buyers miss this window through inaction.
- One buyer on the deed having previously owned property. For joint purchases, every person on the deed must independently qualify as a first-time buyer. A previous ownership by just one party — even a briefly held property years ago — removes the relief entirely.