What Is Stamp Duty?

Stamp Duty Land Tax (SDLT), commonly known as stamp duty, is a tax you may have to pay when you buy property or land in England or Northern Ireland. The amount you owe depends on several factors:

• The purchase price of the property
• Whether you’re a first-time buyer, a home mover, or an investor
• Whether the property is residential or non-residential
• If you already own a property anywhere else in the world

The rules and thresholds can change at short notice, so it’s important to get up-to-date advice before committing to a purchase.

Let’s take a look at how this works in three typical cases, using the rates as of today’s date (3rd August 2025) — but do note that these rates may change in the future, especially following government budgets or housing policy reforms.

Stamp Duty Example Scenarios

1. First-Time Buyer – £300,000 Property

If you’re buying your first home and the property price is £300,000, you’ll pay no stamp duty because the first £425,000 is exempt for first-time buyers (as long as the property costs £625,000 or less).

✅ Stamp Duty: £0
(You benefit from the first-time buyer relief.)

2. Home Mover – £300,000 Property

If you’re replacing your main residence, you won’t qualify for any first-time buyer relief. Here’s the calculation based on the standard residential rates:

• 0% on the first £250,000 = £0
• 5% on the next £50,000 = £2,500

💷 Stamp Duty: £2,500

3. Buy-to-Let Investor – £300,000 Property

If you’re purchasing an additional property (such as a rental investment), there’s a 3% surcharge on top of the standard rates:

• 3% on the first £250,000 = £7,500
• 8% on the next £50,000 = £4,000

💷 Stamp Duty: £11,500

Always Check Your Personal Circumstances

These examples are for illustration only and reflect current rates as of 3rd August 2025. Since government policy may change, always check your current liability using the official calculator:

🔗 Use the HMRC Stamp Duty Calculator