Stamp Duty Land Tax (SDLT) is one of the largest upfront costs in any UK property transaction, and the rates changed significantly in April 2025. Whether you're buying your first home, adding to a portfolio, or purchasing through a company, understanding the current rates is essential for accurate deal analysis.
The April 2025 SDLT Rate Changes
From 1 April 2025, the temporary thresholds introduced during the pandemic era were removed. The nil-rate band for standard purchases reverted from £250,000 back to £125,000, and first-time buyer relief was reduced from £425,000 to £300,000. These changes added thousands of pounds to most property purchases.
Current SDLT Rates, Standard Purchases (2025/26)
| Portion of Purchase Price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
For a standard £300,000 purchase, you would pay: £0 on the first £125,000, plus £2,500 on the next £125,000, plus £2,500 on the final £50,000, totalling £5,000.
First-Time Buyer Relief
First-time buyers purchasing a property up to £500,000 benefit from a higher nil-rate threshold of £300,000. You pay nothing on the first £300,000, then 5% on the portion from £300,001 to £500,000.
| Portion of Purchase Price | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
A first-time buyer purchasing at £400,000 would pay just £5,000 (5% on the £100,000 above £300,000). If the property costs over £500,000, first-time buyer relief does not apply and standard rates kick in.
Additional Property Surcharge
If you already own a residential property, including buy-to-let or inherited property, an additional 5% surcharge applies on top of the standard rates for every band. This was increased from 3% to 5% in the October 2024 Autumn Budget.
| Portion of Purchase Price | Standard Rate | Additional Property Rate |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 – £250,000 | 2% | 7% |
| £250,001 – £925,000 | 5% | 10% |
| £925,001 – £1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
For a typical £250,000 buy-to-let purchase, the additional property SDLT comes to £15,000, versus just £2,500 at standard rates. That is a significant chunk of your acquisition costs and must be factored into any deal appraisal.
Company & SPV Purchases
Companies (including Special Purpose Vehicles used for buy-to-let) pay the additional property surcharge on all residential purchases regardless of whether they already own property. The 5% surcharge applies from the first pound.
For properties over £500,000 purchased by a "non-natural person" (a company), an additional 2% non-resident surcharge may also apply if the buyer is non-UK resident, bringing potential rates up to 19% on the highest band.
How This Affects Your Deal Numbers
SDLT is a non-recoverable acquisition cost. On a BRRR deal, it directly reduces your equity position. On a flip, it eats into profit margin. Getting it wrong by even a few thousand pounds can turn a marginal deal into a loss-maker.
Common mistakes include:
- Forgetting the additional property surcharge on second homes
- Assuming first-time buyer rates apply when they don't (e.g., property over £500,000)
- Not accounting for SDLT on both purchase and refinance (if applicable)
- Missing the company surcharge on SPV purchases
Calculate Your Exact SDLT
Use our free SDLT calculator to get the precise figure for your deal, covering all buyer types, surcharges, and the latest April 2025 rates.
Open SDLT Calculator →