Stamp Duty

Holiday over

April 1, 2025 marked the end of a stamp duty holiday, where the thresholds were temporarily increased to stimulate the post-pandemic housing market, especially to support first-time buyers and home ownership outside of London. There was a surge in transaction activities as buyers raced to complete before the deadline. Which could mean a more modest market in rest of the year as some of the demand got front-loaded.

The holiday, or the end of it, reflects the state of the government coffers. Stamp duty receipts fell 24% between the fiscal year 23/24 and 22/23 to £11.6bn, as the property market came under pressure from rising cost of living and mortgage rates.

For second homes and buy-to-let properties, a 5% surcharge applies to the purchase price (raised from 2% in October 2024). Non-resident buyers are subject to an additional 2% surcharge.

Effective April 1, 2025

Standard rates
Up to £125,000: 0%
£125,001 to £250,000: 2%
£250,001 to £925,000: 5%
£925,001 to £1.5 million: 10%
Over £1.5 million: 12%

First-time rates for properties under £500,000
Up to £300,000: 0%
£300,001 to £500,000: 5%

September 2022 - March 2025

Standard rates
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 rates for properties under £625,000
Up to £425,000: 0%
£425,001 to £625,000: 5%

Commercial or mixed-use properties have their own banding. And that remains the same.

Up to £150,000: 0%
£150,001 to £250,000: 2%
Over £250,000: 5%

The above information applies to only properties in England. In Wales, the stamp duty is called land transaction tax. Over in Scotland, buyers have to pay land and buildings transaction tax. HMRC has a stamp duty calculator so you can work out your precise bill.