UK STAMP DUTY

As of April 1, 2025, the UK government has implemented significant changes to Stamp Duty Land Tax (SDLT) rates for residential property purchases in England and Northern Ireland. Here's a comprehensive overview:

🏡 Standard Residential Property Rates (Effective April 1, 2025)

Property Price BracketSDLT RateUp to £125,0000%£125,001 to £250,0002%£250,001 to £925,0005%£925,001 to £1.5 million10%Above £1.5 million12%

🧑‍💼 First-Time Buyer Relief

First-time buyers benefit from reduced SDLT rates:

• 0% on the first £300,000
• 5% on the portion between £300,001 and £500,000
• No relief for properties priced over £500,000MaPS+11QualitySolicitors+11Girlings Solicitors+11GOV.UKTogetherMoney+2Wikipedia+2GOV.UK+2

Example: For a first-time buyer purchasing a property at £400,000:

• 0% on the first £300,000 = £0
• 5% on the remaining £100,000 = £5,000
• Total SDLT = £5,000 GOV.UK
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• Additional Properties (Second Homes & Buy-to-Let)
• An additional 3% surcharge applies to each SDLT band for buyers purchasing additional residential properties:
• Up to £125,000: 3%
• £125,001 to £250,000: 5%
• £250,001 to £925,000: 8%
• £925,001 to £1.5 million: 13%
• Above £1.5 million: 15%QualitySolicitorsQualitySolicitors+4Muve Conveyancing+4GOV.UK+4

Note: If you're replacing your main residence and sell your previous one within 36 months, you may be eligible for a refund of the additional 3% surcharge. QualitySolicitors+4GOV.UK+4Girlings Solicitors+4

To estimate your SDLT liability:

• Use the official HMRC SDLT Calculator
• Alternatively, tools like MoneyHelper's Stamp Duty Calculator can assistGOV.UKMaPS+1The Sun+1

📌 Key Takeaways

• The nil-rate threshold for standard purchases has decreased from £250,000 to £125,000.
• First-time buyer relief now applies only up to £300,000, with a maximum property value of £500,000 to qualify.
• An additional 3% SDLT surcharge applies to second homes and buy-to-let properties.