The Complete Guide to Stamp Duty: Everything You Need to Know Before You Buy a House
- George Hampson
- 9 hours ago
- 4 min read
Let’s be honest: buying a home can be one of life’s most exciting moments, but it can also feel like a financial minefield. Between mortgages, solicitors’ fees and surveys, it’s easy to lose track of what everything actually costs. And then, just when you think you’ve accounted for it all, in swoops another major cost – stamp duty.
Whether you’re a first-time buyer or you’ve moved house before, stamp duty can be confusing. Who pays it? When do you pay it? How much will it set you back? That’s where we can help. We’ve put together this complete guide to break it down for you. No jargon, no nonsense, just the facts you need.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax you pay when you buy property or land in England and Northern Ireland. It applies to both freehold and leasehold properties, whether you’re buying outright or with a mortgage.
The amount you pay depends on the price of the property, and in some cases, whether you’re a first-time buyer or purchasing a second home.
Scotland and Wales have their own systems:
In Scotland, it’s called Land and Buildings Transaction Tax (LBTT).
In Wales, it’s called Land Transaction Tax (LTT).
For this guide, we’ll be focusing on stamp duty as it applies in England and Northern Ireland.
Why Do I Have to Pay Stamp Duty?
Stamp duty might feel like just another expense in the long list of costs when buying a home, but there’s a reason it exists – and understanding why you’re paying it can make it feel a little less frustrating.
In simple terms, Stamp Duty Land Tax (SDLT) is a form of taxation collected by the government on property transactions. It’s been around in one form or another since the 17th century, originally introduced to raise revenue for the state (and yes, it’s stuck around ever since).
When Do You Pay Stamp Duty?
You will need to pay stamp duty within 14 days of completing the purchase of your home. Usually, your solicitor or conveyancer will handle the payment for you and include the amount in their final bill.
That said, the responsibility still lies with you, so make sure it’s been paid on time, or you could face a penalty.
How Much is Stamp Duty in 2025?
The rules regulations around stamp duty have recently changed. Stamp duty is calculated based on thresholds. You only pay tax on the part of the property price that falls within each band –kind of like income tax.
As of April 2025, the standard SDLT rates for residential properties are:
Property Price | Stamp Duty Rate |
Up to £250,000 | 0% |
£250,001 to £925,000 | 5% |
£925,001 to £1.5 million | 10% |
Over £1.5 million | 12% |
First-Time Buyers
If you’re a first-time buyer, you benefit from a discount:
No stamp duty on the first £425,000.
5% on the portion between £425,001 and £625,000.
If the property is over £625,000, you don’t get the relief and the standard rates apply.
Example:
Let’s say you’re buying a house for £600,000.
Here’s how the stamp duty breaks down:
0% on the first £250,000 = £0
5% on the next £350,000 = £17,500
Total SDLT = £17,500
If you’re a first-time buyer, the calculation looks like this:
0% on the first £425,000 = £0
5% on the remaining £175,000 = £8,750
Total SDLT = £8,750
That’s a saving of £8,750 just for being a first-time buyer.
What If You’re Buying a Second Home?
If you’re buying a second home (including buy-to-let properties or holiday homes), you’ll have to pay a 3% surcharge on top of the standard rates – even if the property is under £250,000.
For example:
You buy a second property worth £300,000.
Standard rate = 5% on the amount over £250,000 = £2,500
3% surcharge on the entire £300,000 = £9,000
Total SDLT = £11,500
Stamp Duty for Shared Ownership
If you're buying a shared ownership property, you can either:
Pay SDLT on the full market value of the property (known as a market value election), or
Only pay on the share you're buying now (plus rent on the rest, if applicable).
Most people opt for the second option to keep upfront costs down, but it can mean paying more SDLT later if you “staircase” and buy more of the property over time.
Tips for Planning Ahead
Let’s face it – stamp duty can throw a real spanner in the works if you haven’t factored it into your moving budget. So, here are our top tips to stay one step ahead:
Use an SDLT Calculator
HMRC has a free stamp duty calculator on their website. You can use it early in your house-hunting journey, so there are no nasty surprises.
Include it in Your Budget
When working out your deposit and fees, add stamp duty to the pot. It’s not something you want to scrape together last minute.
Ask Your Solicitor
Good solicitors will advise you on how much stamp duty you’ll owe and when it needs to be paid. Make sure they’re factoring this into your timeline.
Stamp Duty Summary
We know stamp duty isn’t the most thrilling part of moving house. But getting clued-up now can save you a whole load of confusion (and cost) down the line.
Whether you're a first-time buyer or a seasoned mover, knowing your stamp duty rates helps you make better financial decisions – and lets you focus on the fun part of moving: turning a new house into your home.
Still got questions about moving house? That’s where we shine. From packing advice to full-service removals, Saint Removals has you covered every step of the way.
Ready to make your move? Get in touch with us today, and we’ll help make your next chapter the smoothest one yet.
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