When buying a home or rental property, one of the biggest expenses alongside the purchase price is the amount of Stamp Duty Land Tax (SDLT) payable for the transaction. Since April, the payable amount has changed, so here’s a recap on the Stamp Duty changes for 2025.
Stamp Duty from April 2025
Homebuyers and landlords should be aware that Stamp Duty rates and thresholds in England and Northern Ireland have changed as of April 2025.
The amount of SDLT payable has reverted to levels in place before September 2022 however, following the October 2024 Autumn Budget, landlords and second-home buyers will have to pay an additional 2% surcharge on top of already higher rates.
Stamp Duty obligations vary depending on the price of the property and applies to both freehold and leasehold purchases. In this feature, we provide a breakdown of the new rates and thresholds that apply to residential purchases of properties based in England and Northern Ireland. Landlords and second-home buyers are liable to higher rates.
Stamp Duty Thresholds 2025
Most homebuyers will need to pay SDLT on their property purchase. The amount they pay is based on Stamp Duty thresholds and will depend on when you bought the property, how much it cost, and if you are eligible for relief or an exemption. For a complete list of exemptions, follow this link to government guidance.
The table below outlines Stamp Duty Thresholds as of 1 April 2025 and applies to residential purchases if you only hold one home upon completion of the transaction.
Property Value (England and Northern Ireland)
Up to £125,000 = 0%
The next £125,000 (the portion from £125,001 to £250,000) = 2%
The next £675,000 (the portion from £250,001 to £925,000) = 5%
The next £575,000 (the portion from £925,001 to £1.5 million) = 10%
The remaining amount (the portion above £1.5 million) = 12%
Source: Gov.uk
Stamp Duty for first-time buyers
For those looking to buy their first property, the good news is that lower Stamp Duty rates apply for first-time buyers.
First-time buyers purchasing property in England and Northern Ireland are eligible for SDLT relief, which applies to individual homebuyers who have not owned a property before. If you're buying as a couple, the rates apply if all parties are buying their first property.
As of April 2025, the new thresholds are outlined in the table below.
- No SDLT payable up to £300,000
- 5% SDLT on the portion from £300,001 to £500,000
It’s important to note that first-time buyers purchasing a home over £500,000 cannot claim the relief and should apply the same thresholds outlined in the first table.
Stamp Duty Buy-to-Let and Second Homes
For residential landlords and second-home buyers, an additional 5% levy is applied on top of SDLT the usual rates.
Property Value (England and Northern Ireland)
Up to £125,000 = 5%
The next £125,000 (the portion from £125,001 to £250,000) = 7%
The next £675,000 (the portion from £250,001 to £925,000) = 10%
The next £575,000 (the portion from £925,001 to £1.5 million) = 15%
The remaining amount (the portion above £1.5 million) = 17%
Source: Gov.uk
There are exemptions in place where the 5% surcharge does not apply. These include:
- When the buyer is replacing their main residence
- The previous main residence is sold within 36 months of completing your new purchase
Stamp Duty Calculator
Need help working out how much tax you'll pay on your next property purchase? Utilise We Do Mortgage's Stamp Duty calculator to determine your SDLT liability.
The FCA does not regulate some forms of Buy-to-Let mortgages.
On clicking the above (Government Guidance & Gov.uk) links, you will leave the regulated site of We Do Mortgages Ltd. Neither We Do Mortgages Ltd, nor Sesame Ltd, is responsible for the accuracy of the information contained within the linked site.
