What is Stamp Duty?
Stamp Duty, also referred to as Stamp Duty Land Tax (SDLT) is a tax that applies when you buy property or land in England or Northern Ireland. It’s charged at different rates depending on the price of the property, whether you’re a first-time buyer, home mover, or purchasing an additional property.
Use our Stamp Duty calculator to find out exactly how much Stamp Duty tax you’ll owe when purchasing a property in England, Northern Ireland or Wales.
In Scotland and Wales whilst the concept of Stamp Duty is the same, the names and some of the rules may differ:
- In Scotland the property tax is referred to as Land and Buildings Transaction (LBTT).
- In Wales the property tax is called Land Transaction Tax (LTT).
Stamp Duty applies to both residential and non-residential properties, but the rates are different depending on the type of purchase.
You’ll need to pay Stamp Duty in the following cases:
- Buying a freehold property – whether it’s a house, flat, or other type of home.
- Buying a leasehold property – whether it’s a new lease or an existing one.
- Buying land – if the purchase price is above the threshold.
- Transferring property ownership in exchange for money – even if it’s not a traditional sale, such as when you take on a share of a mortgage in a house.
Standard residential property rates threshold in England and Northern Ireland from 1st April 2025.
| Property price | Stamp Duty rate |
| Up to £125,000 (£300,000 for first-time buyers) |
0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
Example: (owned property before/moving house)
Scenario: How much is Stamp Duty on a £300k house in England and Northern Ireland?
Stamp duty calculation:
- First £125,000: Taxed at 0%.
- Calculation: £125,000 × 0% = £0.
- Calculation: £125,000 × 0% = £0.
- Next £125,000 (portion from £125,001 to £250,000): Taxed at 2%.
- Calculation: £125,000 × 2% = £2,500.
- Calculation: £125,000 × 2% = £2,500.
- Remaining £50,000 (portion from £250,001 to £350,000): Taxed at 5%.
- Calculation: £50,000 × 5% = £2,500.
Total SDLT owed: £0 + £2,500 + £2,500 = £5,000.
For first-time buyers, the tax-free threshold will drop from £425,000 to £300,000. This means some buyers may need to factor in additional costs when budgeting for their new home.
First-time buyer Stamp Duty threshold (England and Northern Ireland):
| Property price | Stamp Duty rates |
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% on the portion above £300,000 |
| Over £500,000 | Standard rates apply to the entire property value |
Example: Purchasing a property for £350,000 as a first-time buyer.
- First £300,000: Taxed at 0%.
- Calculation: £300,000 × 0% = £0.
- Calculation: £300,000 × 0% = £0.
- Remaining £50,000 (portion from £300,001 to £350,000): Taxed at 5%.
- Calculation: £50,000 × 5% = £2,500.
Total Stamp Duty owed: £0 + £2,500 = £2,500.
If you're considering buying a residential second home or a buy-to-let property in England or Northern Ireland for £40,000 or more, you may have to pay higher Stamp Duty tax rates.
Key changes effective from 1st April 2025:
The surcharge on additional properties, including second homes and buy-to-let investments, will increase from 3% to 5% across all bands. This surcharge is added on top of the standard SDLT rates.
Adding this surcharge onto the standard Stamp Duty rates for additional residential property purchases; here’s how much you’ll need to pay:
- Up to £125,000: 5%.
- £125,001 to £250,000: 7%.
- £250,001 to £925,000: 10%.
- £925,001 to £1.5 million: 15%
- Above £1.5 million: 17%.
In Wales the property tax is called Land Transaction Tax (LTT), whilst the concept of Stamp Duty is the same the rates are different to England, Northern Ireland and Scotland.
LTT Rates for main residential properties in Wales
If you’re buying a home to live in, these are the current LTT rates in Wales:
| Property price | LTT rate |
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750000 | 7.5% |
| £750,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
Example: If you buy a house for £300,000, you would pay:
- 0% on the first £225,000 = £0.
- 6% on the remaining £75,000 = £4,500.
- Total LTT = £4,500.
Land Transaction Tax for first time buyers in Wales
Unlike England and Northern Ireland, Wales doesn’t have a specific first-time buyer discount. However, many first-time buyers benefit from the 0% rate on properties up to £225,000. If you’re purchasing above this threshold, you’ll pay LTT on the portion exceeding £225,000.
Example: If you’re a first-time buyer purchasing a home for £280,000, you would pay:
- 0% on the first £225,000 = £0.
- 6% on the remaining £55,000 = £3,300.
- Total LTT = £3,300.
LTT for second properties and buy-to-let properties
If you’re buying an additional property, you’ll pay different LTT rates than for a main residential home. These rates are higher due to the additional property surcharge.
| Property price | LTT rate for second properties |
| Up to £180,000 | 5% |
| £180,001 to £250,000 | 8.5% |
| £250,001 to £400,000 | 10% |
| £400,001 to £750,000 | 12.5% |
| £750,001 to £1.5 million | 15% |
| Over £1.5 million | 17% |
Example: If you’re purchasing a second property for £275,000, you would pay:
- 5% on the first £180,000 = £9,000,
- 8.5% on the next £70,000 = £5,950,
- 10% on the remaining £25,000 = £2,500.
Total LTT = £17,450.
Stamp Duty on non-residential and mixed-use properties in England and Northern Ireland
Non-residential and mixed-use properties refer to types of real estate that do not exclusively serve as residential spaces. These properties are subject to different rules, especially when it comes to taxes like stamp duty.
Non-residential properties include:
- Shops, offices, and warehouses.
- Agricultural land.
- Development land.
- Forests and other commercial buildings.
Mixed-use properties contain both residential and commercial elements, such as a shop with a flat above it.
Non-residential Stamp Duty rates
| Property price | Stamp Duty rate |
| Up to £150,000 | 0% |
| £150,001 to £250,000 | 2% |
| Over £250,001 | 5% |
You can visit GOV.UK for more information on the Stamp Duty rates for non-residential and mixed-use properties.
Frequently asked questions
The UK housing market is always evolving, and stamp duty rates could be subject to further changes. However, for now, these adjustments from April 2025 are confirmed, so it’s best to plan accordingly. You can visit GOV.UK to keep track of Stamp Duty rates in the UK.
The deadline to pay Stamp Duty in England and Northern Ireland is within 14 days of completion (the day you officially take ownership of the property).
In most cases:
- Your solicitor or conveyancer will handle the payment on your behalf.
- They’ll submit a Stamp Duty return to HMRC (even if no tax is owed).
- If you’re paying, they’ll arrange the transfer of funds to HMRC.
However, even if your solicitor manages this process, the legal responsibility to ensure payment is made on time rests with you as the buyer. If you miss the deadline, you could face penalties and interest charges, and we don’t want that.
The person buying the property is responsible for paying Stamp Duty, not the seller. If multiple people are buying together, they are jointly responsible for making sure it’s paid.
Yes. If you are a non-UK resident and you’re buying a property in England or Northern Ireland, you will have to pay Stamp Duty, along with a potential additional surcharge.
- Who qualifies as a non-UK resident for Stamp Duty purposes?
A non-UK resident is someone who has not been present in the UK for at least 183 days in the 12 months before their property purchase. Any more than 6 months, you’ll be treated as a UK resident for Stamp Duty purposes. - How much extra Stamp Duty will I pay as a non-UK resident?
You will pay a 2% surcharge on top of the standard Stamp Duty rates for any residential property purchase in England and Northern Ireland.
Example: Anna is an Australian citizen who frequently travels to the UK for work but has only spent 150 days in the country in the past year. Since she has not met the 183-day residency requirement, she will be classified as a non-UK resident and will have to pay the 2% Stamp Duty surcharge when buying a property in England or Northern Ireland. - Does the 2% surcharge apply to all types of property purchases?
Yes, the surcharge applies whether you’re buying a home to live in, a buy-to-let investment, or a second property. - How do I prove my residency status?
Your residency is determined based on your passport, visa, or travel history. Your solicitor or conveyancer will help confirm your status when you buy a property. - Can I get a refund if I become a UK resident after purchasing the property?
Yes, if you become a UK resident within 12 months after your purchase, you may be able to claim a stamp duty surcharge refund of the 2% surcharge.