If you’re planning to buy property in England or Northern Ireland, you need to know about Stamp Duty Land Tax (SDLT).
It’s a tax you pay when you purchase property over a certain value.
The amount of SDLT you owe depends on the price of the property and your personal circumstances. Instead of a flat rate, SDLT is calculated using a tiered structure. This means different portions of the property’s price are taxed at different rates.
From April 1, 2025, the SDLT rates reverted to their pre-September 2022 thresholds:
Example: John and Mary are buying a home worth £500,000 in October 2025.
They will pay:
So, their total SDLT will be £15,000, which must be paid within 14 days of completing the purchase. Usually, their solicitor or conveyancer will handle this payment.
To encourage home ownership, first-time buyers get reduced SDLT rates. From April 1, 2025, the rates are now:
Note: If the property price exceeds £500,000, standard rates apply without relief.
Example: Kaleb is a first-time buyer purchasing a property for £500,000 in June 2025. He will pay:
This saves Kaleb £5,000 compared to non-first-time buyers.
If you’re buying an additional property valued over £40,000, like a second home or a buy-to-let investment, you’ll pay higher SDLT rates. A 5% surcharge applies to the standard rates.
Example: Tara buys a buy-to-let property for £250,000 in June 2025.
She will pay:
If you sell your main residence and buy another, you’ll pay the normal SDLT rates on the new property.
However, if you haven’t sold your previous main residence yet, you’ll be charged higher SDLT rates because you’ll own an additional property. If you sell your previous residence within three years, you can claim a refund of the surcharge.
Looking for more information?
Why not check out our other articles?
4 Minute Read.
Running your own business may leave you little time to consider your financial future but what would you do if a partner or key employee became critically ill or died? Could your business continue?
6 Minute Read.
Very few people contact their Financial Adviser to arrange Critical Illness Protection. According to the Lloyds Banking Group, Brits are three times more likely to insure their pets than themselves.
5 Minute Read.
Considering long-term care is not always pleasant, but it is crucial. State benefits may not cover all expenses, and local authorities have specific criteria for eligibility.
Stirling House Financial Services Limited is authorised and regulated by the Financial Conduct Authority N° 413234
Correspondence Address: ADMINISTRATION CENTRE ♦ PO BOX 268 ♦ MALVERN ♦ WR14 9DD
Enquiries@Stirling-House.com ♦ 0345 68 68 268 ♦ www.Stirling-House.com
Stirling House Financial Services Limited is a wholly owned subsidiary company of Mainstone Asset Management Limited
Registered in England and Wales Nº 07294049
© 2025 by Stirling House Financial Services
Designed by Sam Bampton Design
