Partner Luke McMath, in our Residential Property team, explains how much Stamp Duty you will be required to pay when purchasing a property.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT), commonly referred to as ‘Stamp Duty’, is a tax payable when purchasing a property in England and Northern Ireland. Alternative arrangements apply in Scotland and Wales.
When is Stamp Duty payable?
Stamp Duty is payable as a lump sum upon the completion of a property purchase and the amount due may depend on factors including whether you are a UK resident, purchasing as an individual or a company, a first-time buyer and whether you are purchasing an additional property, that is not your main residence.
What are Stamp Duty rates and are they changing?
Stamp Duty rates are set to change from 1 April 2025, when temporary reliefs that were introduced in September 2022 to support the housing market are withdrawn. Generally speaking, from 1 April 2025 anyone purchasing a property will be required to pay more Stamp Duty, with first-time buyers among those most affected by the change.
For non first-time buyers *
|
Proportion of property’s total value |
Current SDLT rate |
SDLT rate from 1 April 2025 |
|
Up to £125,000 |
0% |
0% |
|
£125,001 to £250,000 |
0% |
2% |
|
£250,001 to £925,000 |
5% |
5% |
|
£925,001 to £1.5 million |
10% |
10% |
|
Over £1.5 million |
12% |
12% |
* Based on the purchase of a residential property as a main residence by a UK resident non first-time buyer where this will become the only property owned on the day of completion. The rules are more complex if another property will also be owned anywhere in the world and a 5% surcharge is then likely to apply. Please ask our Residential Property team for advice in such circumstances.
For first-time buyers
The nil rate band for first-time buyers (the threshold at which Stamp Duty becomes payable), currently £425,000, will return to the previous level of £300,000 from 1 April 2025. On properties valued at up to £625,000, first-time buyers are currently eligible for a discounted Stamp Duty rate of 5% on the proportion of a property’s value between £425,001 to £625,000. This relief will also end.
Current SDLT rates for first-time buyers **
|
Proportion of property’s total value |
SDLT rate |
|
Up to £425,000 |
0% |
|
£425,001 to £625,000 |
5% |
SDLT rates for first-time buyers from 1 April 2025 **
|
Proportion of property’s total value |
SDLT rate |
|
Up to £300,000 |
0% |
|
£300,001 to £500,000 |
5% |
** Based on the purchase of a residential property as a main residence by a UK resident first-time buyer.
Stamp Duty calculator
To calculate the Stamp Duty payable on your property purchase, please visit www.tax.service.gov.uk/calculate-stamp-duty-land-tax or speak to a member of our Residential Property team.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
