Current SDLT Rates in England and Northern Ireland (From April 2025)
Stamp duty is a progressive tax — you pay different rates on different portions of the purchase price, not a flat rate on the whole amount.
Standard Rates (Home Movers and Non-FTBs)
- £0–£125,000: 0%
- £125,001–£250,000: 2%
- £250,001–£925,000: 5%
- £925,001–£1,500,000: 10%
- Over £1,500,000: 12%
First-Time Buyer Rates
- £0–£300,000: 0%
- £300,001–£500,000: 5%
Properties above £500,000 don't qualify for FTB relief — you pay standard rates on the entire amount. Both buyers must be genuine first-time buyers (never owned a property anywhere in the world). If one person in a joint purchase has previously owned property, FTB relief isn't available.
Additional Property Surcharge (Second Homes/BTL)
If you already own a property (including overseas property) and you're buying an additional one, you pay a 5% surcharge on top of the standard rates at every band. This was increased from 3% to 5% in the Autumn Budget 2024, effective from October 2024.
- £0–£125,000: 5% (instead of 0%)
- £125,001–£250,000: 7% (instead of 2%)
- £250,001–£925,000: 10% (instead of 5%)
- £925,001–£1,500,000: 15% (instead of 10%)
- Over £1,500,000: 17% (instead of 12%)
If you're replacing your main residence (selling your current home and buying a new one), you don't pay the surcharge — even if there's a temporary overlap where you own both properties. You may need to pay the surcharge initially and claim a refund within 3 years if your previous home sells after your new purchase.
Worked Examples for New Build Buyers
Here's what you'll actually pay at common new build price points:
£250,000 New Build
- First-time buyer: £0 (fully within FTB nil-rate band)
- Home mover: £2,500 (0% on first £125k + 2% on £125k–£250k = £2,500)
- Additional property: £15,000 (5% on £125k + 7% on £125k = £6,250 + £8,750)
£300,000 New Build
- First-time buyer: £0 (exactly at the FTB nil-rate band ceiling)
- Home mover: £5,000 (0% on first £125k + 2% on next £125k + 5% on final £50k)
- Additional property: £20,000 (standard + 5% surcharge on full amount)
£350,000 New Build
- First-time buyer: £2,500 (0% on first £300k + 5% on £50k above)
- Home mover: £7,500 (0% on £125k + 2% on £125k + 5% on £100k)
- Additional property: £25,000
£400,000 New Build
- First-time buyer: £5,000 (0% on first £300k + 5% on £100k above)
- Home mover: £10,000 (0% on £125k + 2% on £125k + 5% on £150k)
- Additional property: £30,000
£500,000 New Build
- First-time buyer: £10,000 (0% on first £300k + 5% on remaining £200k) — this is the maximum FTB relief saves you
- Home mover: £15,000 (0% on £125k + 2% on £125k + 5% on £250k)
- Additional property: £40,000
£600,000 New Build
- First-time buyer: £20,000 (FTB relief NOT available above £500k — pays standard rates)
- Home mover: £20,000 (same as FTB — no relief available)
- Additional property: £50,000
Note the cliff edge at £500,001: a first-time buyer paying £500,000 owes £10,000 in stamp duty; one paying £500,001 owes £15,001 (standard rates on the full amount). That extra £1 on the purchase price costs an additional £5,001 in stamp duty.
The Shared Ownership SDLT Election
This is a new-build-specific consideration that can save — or cost — thousands. When you buy a Shared Ownership property, you have two options for how stamp duty is calculated:
Option 1: Pay SDLT on Your Initial Share Only (Market Value Election)
You pay stamp duty based only on the share you're purchasing, not the full market value of the property. This is the default position.
- Property value: £300,000
- Your 25% share: £75,000
- SDLT on £75,000: £0 (well within nil-rate bands for both FTB and standard buyers)
However, when you staircase (buy additional shares), you pay SDLT again on each purchase — but only if your cumulative ownership reaches 80% or more. At that point, you pay SDLT on the market value of the additional share at the rates applicable at the time of that transaction.
Option 2: Pay SDLT on the Full Market Value Upfront
You elect to pay stamp duty based on the full market value of the property from day one, even though you're only buying a share.
- Property value: £300,000
- Your 25% share: £75,000
- SDLT based on £300,000 (FTB): £0
- SDLT based on £300,000 (home mover): £5,000
The advantage? When you staircase in the future, you pay no additional SDLT at all — you've already paid it on the full value. If you plan to staircase to 100% ownership and the property will have increased in value by then, this election can save significant money.
Which Option Is Better?
- If you're a first-time buyer purchasing a share of a property valued at £300,000 or less: It doesn't matter — both options result in £0 SDLT initially. But electing to pay on the full value protects you from future SDLT when staircasing
- If you're a first-time buyer and the full value is £300,001–£500,000: Paying on your share only (£0) is cheaper now, but you'll pay SDLT later when staircasing above 80%. Run the numbers both ways
- If you're not a first-time buyer: Paying on your share only saves money upfront but creates SDLT liability later. The market value election fixes your total SDLT cost at today's rates and property value
Your solicitor should advise on which election to make. The choice must be made before completion and is irrevocable — you can't change your mind later.
How Developer Incentives Affect Stamp Duty
New build developers frequently offer to "pay your stamp duty" as an incentive. Understanding how this actually works matters:
Developer Pays Stamp Duty Directly
The developer gives you a cash contribution equal to your stamp duty liability, which you use to pay HMRC. The stamp duty is calculated on the full purchase price — the incentive doesn't reduce the price for SDLT purposes. So on a £350,000 new build where the developer "pays your stamp duty," you're still buying at £350,000 — the developer is giving you £2,500 (FTB) or £7,500 (home mover) to cover the tax bill.
Price Reduction vs Stamp Duty Contribution
A straight price reduction is usually more valuable than a stamp duty contribution of the same amount, because it reduces:
- The purchase price (and therefore your mortgage amount)
- The stamp duty calculated on the lower price
- Your loan-to-value ratio (potentially qualifying you for a better mortgage rate)
Example: On a £350,000 property, a £7,500 price reduction (to £342,500) saves you stamp duty AND reduces your mortgage by £7,500. A £7,500 stamp duty contribution covers the tax but your mortgage is still £350,000.
HMRC's View on Incentives
HMRC considers whether incentives affect the "chargeable consideration" (the amount SDLT is calculated on). Cash incentives that aren't linked to the property price (stamp duty paid, legal fees covered, furniture packages) generally don't reduce the chargeable consideration. But significant price discounts, cashback schemes, or "deposit gifted" arrangements might be scrutinised. If HMRC believes the effective purchase price is lower than the stated price, they can recalculate SDLT — but this could work in your favour if it reduces the taxable amount.
Your solicitor handles the SDLT return and will advise on how incentives should be declared.
Scotland and Wales: Different Systems
Scotland: Land and Buildings Transaction Tax (LBTT)
Scotland doesn't use SDLT. Instead, it has its own tax:
- £0–£145,000: 0%
- £145,001–£250,000: 2%
- £250,001–£325,000: 5%
- £325,001–£750,000: 10%
- Over £750,000: 12%
Scotland has a first-time buyer relief that raises the nil-rate band to £175,000 (saving up to £600). There's also an Additional Dwelling Supplement (ADS) of 6% for additional properties — higher than England's 5% surcharge.
Wales: Land Transaction Tax (LTT)
Wales has its own system administered by the Welsh Revenue Authority:
- £0–£225,000: 0%
- £225,001–£400,000: 6%
- £400,001–£750,000: 7.5%
- £750,001–£1,500,000: 10%
- Over £1,500,000: 12%
Wales doesn't have a specific first-time buyer relief. The nil-rate band of £225,000 applies to everyone. Higher residential rates (for additional properties) add 4% at each band.
Timing and Payment
When Is SDLT Due?
SDLT must be paid within 14 days of completion (the date you legally own the property). Your solicitor handles the SDLT return and payment as part of the conveyancing process — they submit the return to HMRC and pay the tax from the completion funds. You don't need to do anything yourself, but make sure the SDLT amount is included in your completion statement and that you've budgeted for it.
What If You Miss the Deadline?
Late filing attracts automatic penalties: £100 if up to 3 months late, £200 if more than 3 months late, plus daily penalties and interest. In practice, this almost never happens because solicitors file the return on completion day. But if there's a delay — perhaps due to incomplete documentation — your solicitor should flag it immediately.
Refunds
You can claim a refund if:
- You paid the additional property surcharge but sold your previous home within 3 years of the new purchase — you can reclaim the 5% surcharge
- The SDLT return contained an error (wrong rates applied, wrong relief claimed)
- The transaction is rescinded or annulled (extremely rare on new builds)
Refund claims must be made within 12 months of the filing date (or 12 months from the date the right to refund arose, e.g., when your previous home sold).
Strategies to Reduce Your Stamp Duty on a New Build
1. Stay Within FTB Relief Thresholds
If you're a first-time buyer, staying at or below £300,000 means zero stamp duty. The jump from £300,000 to £301,000 costs £50 in stamp duty — trivial. But the jump from £500,000 to £500,001 costs over £5,000 extra because FTB relief is completely lost. If you're close to the £500,000 threshold, negotiate the price down by even £1.
2. Negotiate a Price Reduction Instead of Incentives
As explained above, a direct price reduction saves stamp duty in addition to reducing your mortgage. On a £400,000 property, a £10,000 price reduction saves you £500 in SDLT (5% of £10,000) on top of the £10,000 itself.
3. Consider the Shared Ownership Election Carefully
If buying through Shared Ownership, the SDLT election can save thousands depending on your staircasing plans. Get advice before completion — the decision is permanent.
4. Claim the Additional Property Surcharge Refund
If you're buying a new build before selling your current home (perhaps because the developer won't wait), you'll pay the 5% surcharge initially. Sell your old home within 3 years and claim the refund — on a £350,000 property, that's a £17,500 refund. Don't forget to claim it; HMRC won't remind you.
5. Check If the Developer Will Contribute
Many developers will pay your stamp duty as part of the incentive package, particularly on unsold stock or end-of-phase plots. This doesn't reduce the tax owed but means someone else pays it for you. Worth asking even if it's not advertised. See our guide on negotiating developer incentives.
Common Stamp Duty Mistakes on New Builds
- Assuming FTB relief applies above £500,000: It doesn't. There's no tapering — it's a hard cut-off. Above £500,000, you pay full standard rates
- Forgetting the additional property surcharge applies to overseas property: If you own a property abroad (even inherited), it counts. The surcharge applies unless it's your replacement main residence
- Not claiming the surcharge refund after selling: If you paid the surcharge and later sold your previous home, you must actively claim the refund within 12 months of selling
- Making the wrong shared ownership SDLT election: Once made, you can't change it. Get advice before completion
- Not budgeting for stamp duty on a developer incentive package: If the developer pays your stamp duty, check whether this counts within the lender's incentive cap. If it pushes total incentives above the cap (usually 5% of property value), the lender may reduce the valuation
- Assuming "stamp duty holiday" rates still apply: The temporary higher thresholds ended in April 2025. The current FTB nil-rate band is £300,000 (not £425,000)
SDLT Calculator Quick Reference
Use this for a fast estimate. For exact figures, use the HMRC stamp duty calculator.
First-Time Buyer (£0–£500,000)
- Up to £300,000: £0
- £325,000: £1,250
- £350,000: £2,500
- £375,000: £3,750
- £400,000: £5,000
- £450,000: £7,500
- £500,000: £10,000
Home Mover (Standard Rates)
- £200,000: £1,500
- £250,000: £2,500
- £300,000: £5,000
- £350,000: £7,500
- £400,000: £10,000
- £450,000: £12,500
- £500,000: £15,000