Stamp Duty is a UK tax charged by the government on the purchase of land and property. The tax is applied when the land or property is valued over a certain amount. This amount can change every few years, with the latest change taking effect from April 1st 2025.

In this guide, we explain what stamp duty is, how it works, and how much you may need to pay when purchasing your new home.

 

What is Stamp Duty?

Stamp Duty land tax, often referred to as SDLT or Stamp Duty, is a tax due on all property purchases, new or pre-owned, in England. If you are buying a residential property, there are different stamp duty rates if you are a first-time buyer, are buying an additional property, or are not a UK resident.

Who pays Stamp Duty?

You pay the tax on the following valued over a certain price:

• A freehold property
• A new or existing leasehold property
• A shared-ownership property
• Or if you take on a mortgage or buy a share in a home

You are exempt when:

• The property is valued under £40,000
• You inherit or are gifted a property
• Full ownership of a shared property is transferred over to you after divorce or the end of a civil partnership

How much is Stamp Duty?

There are different Stamp Duty levels based on the price of the property you’re buying. These levels dictate the Stamp Duty costs you may need to pay. Generally, the more expensive the home you are buying, the more Stamp Duty tax you’ll pay.

Rates from the 1st April 2025

Property price	Stamp Duty
Up 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%

Stamp Duty in Wales

Tax rates differ between England and Wales. Stamp Duty in Wales was replaced by the Land Transaction Tax (LTT) in 2018. You must pay Land Transaction Tax if you buy a property or land over a certain price threshold in Wales. The LTT threshold is at £225,000 for residential properties (as long as you do not own another property).

The rules on who needs to pay LTT are the same as stamp duty laws in England. Most importantly, it’s worth noting that there is no first-time buyers’ relief in Wales.

How much Dtamp Duty will I pay?

Stamp Duty Land Tax (SDLT) is calculated based on the price bands your property falls into, meaning you pay different rates on different portions of your home's price.

To calculate exactly how much Stamp Duty you’ll owe on your new home, follow these steps:

• Step 1: Confirm the exact purchase price of your new home.
• Step 2: Identify the relevant Stamp Duty tax bands for the purchase price (see the rates from April 1st, 2025).
• Step 3: Calculate the amount owed for each portion of the purchase price within the corresponding Stamp Duty band and add them together.

Example:

If you're not a first-time buyer and you’re buying a home priced at £350,000 (after April 1st, 2025), you’ll pay:

• 0% on the first £125,000 = £0
• 2% on the next £125,000 (£125,001–£250,000) = £2,500
• 5% on the remaining £100,000 (£250,001–£350,000) = £5,000

Total stamp duty due: £7,500*

If you're buying a home priced at £600,000, you’ll pay:

• 0% on the first £125,000 = £0
• 2% on the next £125,000 (£125,001–£250,000) = £2,500
• 5% on the next £350,000 (£250,001–£600,000) = £17,500

Total stamp duty due: £20,000*

*Please note, if you’re a first-time buyer, from April 1st 2025, you’ll pay no Stamp Duty on the first £300,000, and then 5% on any portion between £300,001 and £500,000.

Our Redrow mortgage specialists can advise you on exactly how much Stamp Duty you might need to pay, ensuring you're fully informed and ready to move forward confidently.

First-time buyer Stamp Duty

If you’re buying your first home in England, you may be able to claim relief on your stamp duty - this is called ‘first-time buyer stamp duty relief’, and is a government scheme.

From the 1st of April 2025, first-time buyers do not have to pay Stamp Duty on the first £300,000 of the property price. Therefore, if your first home costs less than this, you will be exempt from Stamp Duty altogether.

From April 1st 2025, if you buy your first home for between £300,001 and £500,000, you’ll only pay 5% on that portion of the purchase price. The standard Stamp Duty rates apply to properties valued over £500,000.

Stamp Duty costs on a second home

If you’re purchasing a second home or have the intention of renting your newly-purchased property out, higher rates of Stamp Duty are typically imposed. This usually means that an extra rate of 5% is added to the standard Stamp Duty tax bands.

Home mover Stamp Duty rates

You may still need to pay Stamp Duty when moving home, as the standard stamp duty rules and rates still apply. When you buy a property you're planning to live in (and you've owned a property before), you'll pay Stamp Duty on each portion of the property price.

Stamp Duty rates for non-UK residents

If you are a non-UK resident, an additional 2% charge, known as a surcharge, may be added on top of the stamp duty rates you owe. This surcharge applies to both freehold and leasehold properties.

However, you may qualify as a UK resident if you have been living in the country for 183 days or more in the 12 months leading up to the purchase of the property.

Do you pay Stamp Duty on a new build home?

Yes, standard stamp duty charges apply to all properties - freehold, leasehold, and new builds.

How do you pay Stamp Duty?

Your solicitor or conveyancer is normally the person who calculates and pays your Stamp Duty on your behalf, however you can pay HMRC directly if you so choose. All Stamp Duty must be paid within a maximum of 14 days after completion on your new home.

 

To the best of Redrow’s knowledge, everything in this guide is true at the time of writing. All descriptions, images and plans are illustrations, examples and/or approximations only and some processes listed may differ when buying a Redrow home, please speak with the sales team at your chosen development for more details. Redrow does not accept any liability or responsibility contractual or otherwise for any reliance on the information contained within the guide.