What is stamp duty?
Stamp duty land tax (SDLT) is a progressive tax paid when purchasing a freehold, leasehold or shared ownership residential property over £125,000 in England and Northern Ireland (separate taxes apply in Wales and Scotland).
The rates, which are payable only on the portion of a property price that falls within each band, were updated from the 1 April 2025 and are set out below.
How much is stamp duty?
| Brackets |
Rate |
| 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% |
How is stamp duty calculated?
In April 2025 you buy a house for £850,000. The SDLT you owe will be calculated as follows:
- 0% on the first £125,000 = £0
- 2% on the second £125,000 = £2,500
- 5% on the final £600,000 = £30,000
Total SDLT = £32,500
Rates are higher for buy-to-let properties or second homes. For more information, visit our buy to let stamp duty calculator.
Who pays stamp duty?
Stamp duty tax applies to residential house purchases over a threshold of £125,000. If you’d like to calculate the stamp duty on a non-residential asset, such as a mixed-use property, visit our commercial stamp duty calculator.
How do I pay stamp duty?
In most cases, your solicitor will take care of the paperwork on your behalf. There is an option to do this yourself by following the steps on the UK government website.
When do I pay stamp duty?
Stamp duty is payable to the HMRC 14 days from the date of completion, or you may risk a fine. Your solicitor or legal adviser should take care of this for you within the deadline.
Do first-time buyers pay stamp duty?
Yes, first-time property buyers are subject to stamp duty tax but the rates differ. Let's look at two examples:
In April 2025 you buy a house for £850,000. There is no relief for first-time buyers if the property value is higher than £500,000, so the calculation would be the same as the example given above.
If in April 2025 you buy a house for £500,000, the SDLT you owe will be calculated as follows:
- no SDLT up to £300,000
- 5% SDLT on the portion from £300,001 to £500,000 = £10,000
Total SDLT = £10,000
Are there any other stamp duty exemptions?
From October 2024, buy-to-let and second home buyers in England and Wales pay an additional 5% on each stamp duty band. To discuss which London or UK areas provide the highest returns on investments, speak to one of our London or regional property experts.
What is the stamp duty rate for non-UK residents?
In April 2021, a 2% stamp duty surcharge for overseas buyers purchasing residential property in England and Northern Ireland was introduced. The surcharge applies to any type of non-resident buyer (company or individual), subject to a few exceptions for specific collective investment vehicles such as real estate investment trusts (REITs). The surcharge is levied in addition to the 5% buy-to-let and second homes charge, the flat 17% stamp duty rate on purchases worth more than £500,000 by companies acting as envelopes, and the existing stamp duty rates for home buyers.
Can I add stamp duty to my mortgage?
Yes, this is possible. Some buyers prefer to add on the stamp duty tax amount to their mortgage loan if they can – speak to a professional mortgage provider at Knight Frank Finance to see if you qualify.
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Please note: this calculator is for general interest only and doesn’t constitute advice. The calculator is being updated to reflect the UK Autumn 2024 Budget, therefore this should not be considered up to date or complete, and relates only to certain types of residential property in England or Northern Ireland. Always take tailored advice from your property lawyers, accountants, or other financial advisers on tax issues.