stamp duty explained
published: march 22, 2025
stamp duty land tax (sdlt) is a tax you pay when buying property or land over a certain price in england and northern ireland. understanding how it works and what reliefs are available is essential for first-time buyers planning their budget.
first-time buyer relief
as a first-time buyer, you may qualify for relief that could significantly reduce or eliminate your stamp duty bill:
- no stamp duty on properties up to £425,000
- reduced rate (5%) on the portion between £425,001 and £625,000
- standard rates apply if the property costs more than £625,000
note: these thresholds are current as of march 2025 and are subject to change in future government budgets.
who qualifies as a first-time buyer?
to qualify for first-time buyer relief, you must:
- never have owned a residential property in the uk or anywhere else in the world
- be purchasing a property you intend to use as your main residence
- if buying jointly, all buyers must be first-time buyers to qualify
standard stamp duty rates
if you don't qualify for first-time buyer relief, these are the standard rates (as of march 2025):
| property price | sdlt rate |
|---|---|
| up to £250,000 | 0% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| over £1.5 million | 12% |
remember, stamp duty is calculated on a tiered basis. you only pay the specified rate on the portion of the property price that falls within each band.
additional property surcharge
if you're buying an additional property (e.g., a second home or buy-to-let), you'll pay an extra 3% on top of the standard stamp duty rates on the entire property price.
when and how to pay
stamp duty must be paid within 14 days of completion. your solicitor or conveyancer will usually handle this payment for you, adding it to their fees. they'll also submit the necessary tax return to HMRC.
budgeting for stamp duty
when budgeting for your property purchase, remember to factor in stamp duty alongside other costs like:
- deposit
- conveyancing fees
- survey costs
- mortgage arrangement fees
- moving costs
how propi helps with stamp duty
at propi, we calculate your exact stamp duty liability and explain any reliefs you're entitled to. we handle the payment and submission process, ensuring everything is completed correctly and on time, giving you one less thing to worry about during your property purchase.