If you’re thinking about buying a property, then it’s important to know about Stamp Duty and how it can affect your purchase. The latest Stamp Duty Land Tax (SDLT) changes in April 2025 saw a lowering of the property value threshold, which caused a lot of confusion, especially for first-time buyers.
To help you make an informed decision, we’ve curated a Stamp Duty guide covering everything you need to know, whether you’re a first-time buyer or you’re looking for your next property.
What is stamp duty?
Stamp Duty is a type of tax you have to pay when buying a property or plot of land in the UK. Stamp Duty is set by HMRC and applies in tiers, meaning you only pay each rate on the portion of the property price that falls within that specific tax band.
In England and Northern Ireland, it is officially referred to as “Stamp Duty Land Tax”, in Scotland, “Land and Buildings Transaction Tax”, and in Wales, “Land Transaction Tax”. They are all types of property transaction tax. However, rates and reliefs differ by nation. Today, we will be covering Stamp Duty Land Tax.
The Stamp Duty tax applies to both freehold and leasehold properties, and also applies whether you’re buying outright or with a mortgage. Stamp Duty changes impact all homebuyers, from first-time buyers and movers to those buying additional properties.
Stamp Duty changes 2025: What has changed?
Stamp Duty Land Tax (SDLT) thresholds in England and Northern Ireland dropped on 1 April 2025, making property purchases more expensive.
Here’s a quick breakdown of what has changed:
- Threshold reduction: The temporary higher Stamp Duty thresholds introduced in previous years came to an end. The standard nil-rate threshold reverted back to £125,000, meaning that buyers now pay Stamp Duty on properties above this amount.
- Impact on first-time buyers: First-time buyer relief still applies, but the adjusted threshold means that some buyers who previously paid no Stamp Duty may now face a tax liability. This means that first-time buyers purchasing in higher price brackets need to budget carefully to account for SDLT.
- Why more buyers now pay tax: Because the nil-rate band was reduced, a larger proportion of property purchases now fall into taxable bands. With UK house prices remaining above £125,000 in most regions, many buyers who would previously have paid little or no Stamp Duty are now required to pay at least 2% on part of their purchase price.
Following these changes, many buyers were unclear about whether Stamp Duty rates had increased or whether thresholds had changed. In reality, the percentage rates have remained the same, but the lower threshold means that more buyers are now paying Stamp Duty than before.
How can Stamp Duty impact your property purchase?
It’s important to consider Stamp Duty prices before proceeding with your property purchase because it counts as an upfront lump sum cost.
The amount of Stamp Duty tax you pay on a property can also directly influence the amount available for your deposit, therefore impacting your loan-to-value ratio and mortgage terms.
In fact, after the deposit, Stamp Duty is considered the second-largest expense in the house-buying process. This is because Stamp Duty is paid in addition to:
- Your deposit
- Your legal fees
- Your survey costs
- Your mortgage arrangement fees
- Your moving expenses
With this in mind, it’s important to factor Stamp Duty costs into your overall budget as soon as possible. Understanding your financial responsibilities before committing to a property can help you avoid unexpected issues later in the process.
For a clear breakdown of what to prepare for when beginning your house-buying journey, take a look at our guide: Everything You Need to Know Before Moving House.
How long do you have to pay Stamp Duty?
Stamp Duty must be paid within 14 days of the completion date of a property purchase, so it’s also essential to have the funds ready to transfer. If you fail to complete the transfer, HMRC could charge you penalties and interest.
How much is Stamp Duty?
Stamp Duty changes were rolled out on the 1st April 2025, which saw the thresholds decrease. This now means that homebuyers in England and Northern Ireland are paying more Stamp Duty than before the update.
The standard Residential Stamp Duty prices below are correct at the time of writing and apply for all homebuyers except for first-time buyers, people buying a second property, and non-residents of the UK:
| Minimum property purchase price | Stamp Duty rate |
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
How is Stamp Duty calculated?
Here is how Stamp Duty would be calculated for a property purchase of £450,000 using the standard Stamp Duty Land Tax rates above:
- 0% on the first £125,000 = £0
- 2% on the amount from £125,001 to £250,000 = £2,500
- 5% on the amount from £250,001 to £450,000 = £10,000
Total Stamp Duty due to pay = £12,500
What is the Stamp Duty threshold for first-time buyers?
The Stamp Duty thresholds are a little different if you are an eligible first-time buyer in England or Northern Ireland. This is because of something called “first-time buyer Stamp Duty relief”.
In this case, first-time buyers count as anyone who:
- Is purchasing their only or main residence
- Has never owned a freehold or had a leasehold interest in a residential property (in the UK or abroad)
- Has never owned an interest or share in a residential property
It is also important to note that if you are buying a property for the first time with another person, they must also meet the first-time buyer criteria to receive Stamp Duty relief.
To find out whether you are eligible, we recommend taking a look at the GOV.UK information on Stamp Duty Land Tax relief and exemptions.
| Minimum property purchase price | Stamp Duty rate |
| Up to £300,000 | 0% |
| Up to £500,000 | 0% on the first £300,000, and 5% on the remaining amount up to £500,000. |
| Over £500,000 | The standard Stamp Duty rate. Purchasing a property over this price means you would not be eligible for first-time buyers’ relief. |
What are the rates for Stamp Duty for second homes?
If you are purchasing an additional residential property, a 5% Stamp Duty surcharge applies on top of the standard residential rate (unless the property costs under £40,000).
This higher rate applies to:
- Buy-to-let properties
- Holiday homes
- Second homes
- Properties purchased as an additional residence
This surcharge doesn’t apply for caravans, mobile homes, or houseboats.
The current higher rates for additional properties in England and Northern Ireland are as follows. These rates reflect the standard residential SDLT bands, plus the 5% additional property surcharge introduced in 2024:
| Minimum property purchase price | Stamp Duty rate |
| Under £40,000 | 0% |
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1,500,000 | 15% |
| Over £1,500,000 | 17% |
Can you get a Stamp Duty refund?
It is possible to claim a Stamp Duty refund in certain circumstances. This usually applies if you paid the higher rates for owning two properties because your previous main home hadn’t yet sold.
If you later sell the former main residence within three years of buying your new home, you can reclaim the extra Stamp Duty paid.
Refund claims must be made within 12 months of selling the old property, or within 12 months of filing your Stamp Duty return (whichever comes later).
Enquire today for support from our specialist team
At ONP Solicitors, our goal is to make your move as smooth and stress-free as possible. Our conveyancers are on hand to protect you and your future property throughout the process — now and in the future.
For further assistance or questions about your Stamp Duty obligations, don’t hesitate to get in touch with our team. We’ll provide you with as much support as you need.
Disclaimer: Rates can change over time. Rate information is correct as of January 2026. Always check with GOV.UK or your conveyancer for the latest updates and guidance.
FAQs
Can I add Stamp Duty to my mortgage?
In most cases, Stamp Duty must be paid upfront and cannot be directly added to your mortgage. However, some buyers prefer to increase their mortgage borrowing to cover the cost of Stamp Duty (as long as they meet the lender’s affordability criteria).
If you choose to go down this route, it’s important to consider how increasing your borrowing could affect your loan-to-value (LTV) ratio, monthly repayments, and total interest.
Can gifted money be used towards Stamp Duty charges?
Gifted money (direct bank transfer only) can usually be used towards paying Stamp Duty. However, this depends on whether your mortgage lender accepts gifted money and whether it has been properly declared.
It’s important to note that most lenders require:
- A gifted deposit letter confirming that the money is a non-repayable gift
- Proof of identity from the person gifting the money
- Evidence of the source of the gifted funds (donor’s identification, bank statements, proof of origin, e.g. savings, sale of asset, inheritance, company funds)
Gifted money cannot be a cash gift, as its source cannot be verified.
How does Stamp Duty work for shared ownership properties?
Stamp Duty for shared ownership properties is typically calculated in two different ways.
Buyers can either choose to:
- Pay Stamp Duty on the full market value of the property (also known as a “market value election”), or
- Pay Stamp Duty only on the share they are purchasing initially, with additional tax potentially due if they later increase their ownership share (commonly known as “staircasing”)
The best option depends on your long-term plans and current financial position.
