Stamp Duty Land Tax (SDLT) in England and Northern Ireland changed significantly on 1 April 2025, when the temporary thresholds introduced by the Conservative government in September 2022 expired. Buyers who completed purchases before the deadline benefited from higher nil-rate bands — but those purchasing from April 2025 onwards are subject to the original, lower thresholds. Understanding the new rates is essential for anyone currently planning a property purchase.
What changed on 1 April 2025
Between September 2022 and March 2025, the nil-rate threshold for standard residential purchases was £250,000 and first-time buyers paid no stamp duty on the first £425,000 (with relief available up to £625,000). Both of these thresholds reverted to their pre-2022 levels on 1 April 2025.
This means buyers who completed in late March 2025 versus those completing in April 2025 on the same property could face materially different SDLT bills — sometimes by several thousand pounds.
Current SDLT rates for standard residential purchases
From 1 April 2025, the standard SDLT bands for residential property in England and Northern Ireland are:
| Property price | SDLT rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
SDLT is applied marginally — like income tax. Only the portion of the purchase price that falls within each band is taxed at that band's rate. A £300,000 purchase does not attract 5% on the full amount — it attracts 0% on the first £125,000, 2% on the next £125,000, and 5% on the remaining £50,000.
0% on £125,000 = £0
2% on £125,000 = £2,500
5% on £50,000 = £2,500
Total SDLT: £5,000
First-time buyer relief from April 2025
First-time buyers in England and Northern Ireland continue to receive SDLT relief, but the thresholds are lower than they were under the temporary regime:
| Property price | SDLT rate (first-time buyer) |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Over £500,000 | Standard rates apply — no FTB relief |
The relief drops to zero for properties over £500,000 — at that price point, standard rates apply in full. This means a first-time buyer purchasing at £500,000 pays £10,000 in SDLT (0% on £300k, 5% on £200k), while a buyer at £501,000 — just above the threshold — pays standard rates on the full amount.
0% on £300,000 = £0
5% on £125,000 = £6,250
Total SDLT: £6,250
Under the old temporary threshold (pre-April 2025), this same purchase would have attracted £0 SDLT.
Additional property surcharge
Buyers purchasing a second home, buy-to-let property, or any additional residential property pay a 3% surcharge on top of every standard SDLT band. This applies whether you are buying a £100,000 rental or a £2 million holiday home.
For a landlord purchasing a £250,000 buy-to-let property from April 2025:
- 3% on £125,000 = £3,750
- 5% (2% + 3%) on £125,000 = £6,250
- Total SDLT: £10,000 (versus £5,000 for a standard purchase)
Non-UK resident surcharge
Buyers who are not UK residents at the time of purchase pay an additional 2% surcharge on top of all applicable SDLT rates. This can be combined with the additional property surcharge — meaning a non-UK resident buying an additional property pays 5% above the standard rates on every band.
Scotland and Wales have different rules
SDLT only applies in England and Northern Ireland. Scotland has its own Land and Buildings Transaction Tax (LBTT) with different bands and rates, administered by Revenue Scotland. Wales has Land Transaction Tax (LTT), administered by the Welsh Revenue Authority. Both have their own first-time buyer relief schemes and additional dwelling supplements. If you are buying in Scotland or Wales, the SDLT rates above do not apply to you.
When is SDLT due?
SDLT must be paid and a return filed with HMRC within 14 days of completion. Your conveyancer or solicitor will typically handle this as part of the purchase process and factor the SDLT into the completion funds required. The 14-day deadline is strict — late filing and payment attract penalties and interest.