How much is Stamp Duty?
If you’re buying a home in England or Northern Ireland, you’ll need to budget for Stamp Duty Land Tax (SDLT). It’s one of those costs that can sneak up on buyers, but with the right knowledge, you can plan ahead and avoid nasty surprises.
Let’s break down how it works, calculate how much you might pay, and explore who gets exemptions.
New Stamp Duty Rules 2025
As of April 2025, stamp duty is calculated on a tiered system. You only pay the rate on the portion of the property price that falls within each band.
Stamp Duty Rates for a Single Property (from 1 April 2025)
The rates below apply when, after purchasing the property, it is the only residential property that you own.
Stamp Duty Rates for a First Time Buyer (from 1 April 2025)
If you're purchasing your first home, you can claim 'Stamp Duty Relief'. If you are purchasing the property with someone else, they must also be a first-time buyer for your purchase to be eligible for the relief rates:
Higher Rates for Additional Properties
If buying a property means that you'll now own more than one residential property, you'll usually pay an extra 5% on top of SDLT rates.
What changes were made to Stamp Duty in April 2025?
The nil-rate band dropped from £250,000 → £125,000.
First-time buyer relief fell from £425,000 → £300,000.
Relief only applies if the property price is £500,000 or less.
The 5% surcharge on additional properties, calculated from the new bands.
Stamp Duty Examples
→ Standard buyer, £460,000 house purchase:
£0 – £125,000 = 0%
£125,001 – £250,000 = 2% (£2,500)
£250,001 – £460,000 = 5% (£10,500)
Total SDLT = £13,000
→ First-time buyer, £275,000 home
£0 – £300,000 = 0%
Total SDLT = £0
→ First-time buyer, £450,000 home
£0 – £300,000 = 0%
£300,001 – £450,000 = 5% (£7,500)
Total SDLT = £7,500
Other things to know about Stamp Duty
Second homes and buy-to-lets: You’ll pay the standard rates plus an extra 5%.
Exemptions: Transfers due to divorce, separation, or inheritance don’t normally trigger SDLT.
Shared ownership: You can either pay any applicable SDLT in full upfront or in stages.
Timing matters: The rate is based on when your purchase completes, not when you exchanged.
When is Stamp Duty paid?
Stamp Duty must be paid within 14 days of completion. Usually your solicitor files and pays it for you, but you’ll need to have the cash ready alongside your deposit, moving costs, and legal fees.
Final Word
Stamp Duty isn’t the most exciting part of buying a home, but it’s one of the most important to get right. The changes in April 2025 mean many buyers will now pay more — especially if you’re moving up the ladder.
The good news? With a clear understanding of the rules (and a quick check using our calculator), you can plan ahead, budget properly, and avoid any last-minute surprises on completion day.
If you’d like personalised advice on budgeting for your first home, moving up, or investing in a buy-to-let, our team in Broadstairs is always happy to chat. Honest, stress-free guidance really can make all the difference!. Book a free Intro Call here to get things moving.
