Quick Guide to Stamp Duty Land Tax

Move by 31st of march to save thousands!

The Government are changing the Stamp Duty threshold, which means that you could save thousands if you move by the 31st of March 2025.

What is Stamp Duty Land Tax?

How much is Stamp Duty Land Tax?

SDLT is calculated using a banding system, with different rates applied to each new band on the property’s value.

If you purchase before 31st March 2025:

For homes over £250,000 there is no stamp duty to pay on the first £250,000, then the following rates apply:

£0 to £250,000 - 0%
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%

For example, if you buy a Freehold house for £550,000, the SDLT you will pay will be:

0% on the first £250,000 = £0
5% on the next £300,000 = £15,000

Total SDLT = £15,000

If you purchase after 31st March 2025:

£0 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%

For example, if you buy a Freehold house for £550,000, the SDLT you will pay will be:

0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the next £300,000 = £15,000

Total SDLT = £17,500

For other purchase prices, here is a link to the Government SDLT Calculator

SDLT on Second Homes

If you purchase before 31st March 2025:

£0 to £250,000 - 5%
The next £675,000 (the portion from £250,001 to £925,000) - 10%
The next £575,000 (the portion from £925,001 to £1.5 million) - 15%
The remaining amount (the portion above £1.5 million) - 17%

If you purchase after 31st March 2025:

£0 to £125,000 - 5%
The next £125,000 (the portion from £125,001 to £250,000) - 7%
The next £675,000 (the portion from £250,001 to £925,000) - 10%
The next £575,000 (the portion from £925,001 to £1.5 million) - 15%
The remaining amount (the portion above £1.5 million) - 17%

There are exemptions available in certain circumstances, such as buying a new main residence, which are beyond the scope of this article. For more info, please see GOV.uk. You may also be able to claim money back if you sell your original property within 3 years of purchasing your new home.

*Source: gov.uk.

SDLT for first time buyers

Save £6,250!*

Pay no Stamp Duty on homes priced up to £425,000 if you move before the end of the Stamp Duty holiday! As a first-time buyer, you'll pay £6,250 Stamp Duty on the same priced home from 1st April 2025.

If you purchase before 31st March 2025:

£0 to £425,000 - 0%
The next £200,000 (the portion from £425,001 to £625,000) - 5%

If you purchase after 31st March 2025:

£0 to £300,000 - 0%
The next £200,000 (the portion from £300,001 to £500,000) - 5%

*Source: gov.uk.

When & how do you pay SDLT?

We hope this has been a useful Quick Guide to SDLT for you. For more information please get in touch with us as we can connect you with one of our panel IFA’s or Solicitors who will be happy to give you free advice on your individual circumstances.

Oh and before we go, keep an eye out for deals on the Robertson Homes development you’re interested in – we may just be offering to pick up the SDLT tab for you!

If you still have any questions please contact a member of the Robertson Homes team who are always on hand to provide more information.

Contact us for more information on SDLT