A Simple Guide to Stamp Duty

With Stamp Duty having changed on 1st April 2025, you will now likely be paying thousands of pounds more than if you had completed before then.

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What is stamp duty?

Stamp duty, or stamp duty land tax, is a levy placed on the purchase of property in the UK. Like any standard tax, it must be paid to the government when the requirements are met. In the case of stamp duty, you’ll need to pay it every time you buy a property that meets the minimum threshold – a figure that recently changed in 2025.

Stamp Duty change: Why did it happen?

The previous Government had temporarily increased the thresholds for stamp duty, meaning no stamp duty was payable on a larger portion of a property price. This was to help boost the housing market by reducing some of the costs associated with moving home.

However, stamp duty changed on 1st April 2025, meaning lower thresholds and more stamp duty to pay.

How much is Stamp Duty now?

Stamp duty is calculated in ‘bands’, or pricing thresholds. Each band is charged at a percentage of the house price in it, keeping taxes low for cheaper homes and raising them steadily as properties become more expensive.

The cost of stamp duty changed in 2025, lowering the thresholds for both first time buyers and existing homeowners. When considering what the stamp duty threshold is, it’s important to keep in mind that some sources are out of date – don’t get caught out by an unexpected tax bill!

How much is Stamp Duty in Wales?

In Wales, ‘stamp duty’ has been replaced by ‘land transaction tax’. In principle, the new name describes the same thing: a property levy with slightly different tax brackets. To find out how much you’ll be paying for a home in Wales, you’ll need turn to the website for the Welsh government.

FAQs

  • Like all taxes, stamp duty enters the Treasury to be used as funding for the government. It could pay for the NHS, social services, public schools and military defences, alongside a wide range of long-term projects. In the 1600s, stamp duty was originally introduced to fund the war in France, but property transactions turned out to be such a successful levy that it stuck, and it stayed. It’s still a pretty successful tax to this day!

  • Some providers will allow you to add stamp duty to your mortgage, but this tends to be ill-advised from a financial standpoint. Interest will be accrued on the amount loaned for stamp duty, and you’ll end up paying a lot more than you were taxed over the course of your mortgage. Always speak to a financial advisor before making long-term financial decisions around your house purchase.

  • Stamp duty is payable as soon as you purchase your new home. You’ll need to complete the payment within 14 days of completion to avoid being charged for tax evasion, so make sure that you don’t forget! It can help to put reminders in your diary and phone to avoid the memo getting lost in the chaos of moving house.

  • Stamp duty is a tax levied on home buyers, not sellers or landlords. You’ll only have to pay SDLT on the house you buy and not the house you’re selling. This keeps the tax as balanced as possible when it comes to the never-ending property chain of moving house.

  • Yes, first time buyers need to pay stamp duty, although they benefit from slightly lower rates. These lower thresholds also experienced a cut in 2025, although you can still benefit from tax relief rates. Currently, first time buyers only pay stamp duty on a home valued over £300,000. You’ll owe 5% on the portion of your home up to £500,000 and return to normal rates if the value exceeds it.

  • You’ll need to pay stamp duty on any home, no matter the age. New builds are party to the same thresholds as second hand homes in the UK.