Stamp Duty Land Tax (SDLT) rates changed on 1 April 2025. Whether you’re a first-time buyer, moving house, or looking to purchase a second home, this simple guide explains everything you need to know about the new stamp duty changes so that you can budget effectively for this potentially hefty home-buying fee.
Stamp Duty Land Tax (SDLT), or simply ‘stamp duty’, is a tax paid on land and property purchases over a certain price threshold in England and Northern Ireland. It applies to both freehold and leasehold purchases, whether you’re buying outright or with a mortgage.
In Scotland, the equivalent is Land and Buildings Transaction Tax (LBTT), and in Wales, it’s called Land Transaction Tax (LTT).
You’ll most likely need to pay stamp duty if you are:
How much stamp duty you pay depends on a few factors, including the purchase price, whether the land or property is residential or non-residential/mixed-use, and whether you are eligible for relief or an exemption.
There are different stamp duty thresholds (also known as ‘rate bands’), and you only pay tax on the portion of the property price that falls within each band.
For those purchasing a residential property, different rates apply to:
In some cases, you may be completely exempt from paying stamp duty.
In September 2022, the Government announced a temporary increase to the nil rate threshold (the amount above which stamp duty must be paid), lowering the upfront costs of moving. The aim was to support the housing market and help people get on the housing ladder by increasing affordability for buyers.
This temporary increase ended on 31 March 2025, meaning purchases completed on or after 1 April 2025 are subject to higher stamp duty rates.
On 1 April 2025, several stamp duty changes came into effect. Key changes include:
Below, we explain the new stamp duty rates in more detail and how they affect different types of buyers.
An extra band has been added for main residence properties, meaning people moving home will now pay stamp duty on property purchases over £125,000 (previously £250,000).
The table below compares previous and current stamp duty rates for main residences in England and Northern Ireland.
| Property value | SDLT rate (previous) | SDLT rate (from 1 April 2025) |
| Up to £125,000 | 0% | 0% |
| £125,001 to £250,000 | 0% | 2% |
| £250,001 to £925,000 | 5% | 5% |
| £925,001 to £1.5 million | 10% | 10% |
| Over £1.5 million | 12% | 12% |
The 2025 stamp duty changes affect first-time buyers most heavily. Previously, first-time buyers paid no stamp duty when buying a property worth up to £425,000. This threshold has now dropped to £300,000, meaning more first-time buyers in England and Northern Ireland will pay stamp duty on their property purchase, especially as house prices continue to rise.
Additionally, the maximum purchase price for which First-Time Buyers’ Relief can be claimed has been reduced from £625,000 to £500,000. This could pose another hurdle for first-time buyers, particularly in more expensive areas such as London, where the average property price last year was over £685,000.
The tables below compare previous and current stamp duty rates for first-time buyers in England and Northern Ireland.
| Property value | SDLT rate for first-time buyers (previous) |
| Up to £425,000 | 0% |
| £425,001 to £625,000 | 5% |
| Over £625,000 | First-Time Buyers’ Relief cannot be claimed |
| Property value | SDLT rate for first-time buyers (from 1 April 2025) |
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Over £500,000 | First-Time Buyers’ Relief cannot be claimed |
An extra band has been added to the stamp duty thresholds for additional property purchases, mirroring the general stamp duty changes for main residences.
The table below compares previous and current stamp duty rates for second homes in England and Northern Ireland.
| Property value | SDLT rate for additional property (previous) | SDLT rate for additional property (from 1 April 2025) |
| Up to £125,000 | 5% | 5% |
| £125,001 to £250,000 | 5% | 7% |
| £250,001 to £925,000 | 10% | 10% |
| £925,001 to £1.5 million | 15% | 15% |
| Over £1.5 million | 17% | 17% |
Wondering how much stamp duty you’ll pay under the new stamp duty rules?
Find out using our simple online stamp duty calculator.
Stamp duty is due within 14 days of completing your property purchase. If payment is delayed, you could face a fine or be charged interest on the amount you owe.
Buyers typically pay stamp duty via their solicitors, but you can also pay directly online, or by cheque or cash in many banks.
Yes, you can add stamp duty to your mortgage. However, this will increase the total amount you need to borrow and the interest you pay, which can result in higher monthly repayments. In most cases, it’s cheaper to save for a little longer and pay your stamp duty upfront.
Understanding the additional costs involved in buying a house can be complex, but you don’t have to do it alone. As one of the UK’s leading fee-free mortgage brokers, we know how daunting the home-buying process can be and want to help.
Hopefully, you now have a better understanding of the 2025 stamp duty changes and how they affect you as a buyer, but if there’s anything you’re still unsure about, we’re here to support you.
For FREE, impartial advice on mortgages, stamp duty rates, first-time buyer schemes, or any other aspect of buying a home in 2025, reach out to our trusted mortgage advisors today.
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