What Is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a government levy applied when purchasing property or land in England and Northern Ireland. It’s calculated based on the transaction value and buyer profile—whether you’re a first-time buyer, investor, or overseas purchaser.
Current Stamp Duty Rates (2025)
| Property Price Band | Standard Rate | Additional Property | Overseas Buyer Surcharge |
|---|---|---|---|
| Up to £250,000 | 0% | 3% | +2% |
| £250,001 – £925,000 | 5% | 8% | +2% |
| £925,001 – £1.5 million | 10% | 13% | +2% |
| Over £1.5 million | 12% | 15% | +2% |
Note: First-time buyers may qualify for relief on purchases up to £425,000.
Foreign Buyer Surcharge
Since April 2021, non-UK residents are subject to an additional 2% SDLT surcharge. This applies to individuals and companies without UK residency status in the 12 months preceding the transaction.
Tip: Buyers with UK-based directors or residency ties may reduce exposure—consult a solicitor for structuring options.
Exemptions & Reliefs
- Inherited Property: No SDLT if acquired through inheritance
- Transfers Between Spouses: Often exempt
- Corporate Restructuring: Reliefs available for group transactions
- Multiple Dwellings Relief (MDR): Applies when acquiring two or more units in a single transaction
How to Reduce Stamp Duty Legally
- Extend Completion Timeline: Align with tax year thresholds
- Use MDR Strategically: Particularly for portfolio acquisitions
- Consider Leasehold Structuring: May reduce upfront SDLT
- Consult a Solicitor: For bespoke structuring and appeals
Stamp Duty Calculator
Want a tailored estimate? Request a Stamp Duty Breakdown based on your property and buyer profile.
Frequently Asked Questions
Do foreign buyers pay more stamp duty? Yes—an additional 2% surcharge applies to non-UK residents.
Is stamp duty refundable if a deal falls through? If the transaction doesn’t complete, no SDLT is due. Refunds apply only if overpaid.
Can I appeal my stamp duty assessment? Yes—especially in cases of misclassification or overlooked reliefs.
Related Guides
- Foreign Ownership in the UK
- Leasehold vs Freehold Explained
- Luxury Property Tax Strategies
- Stamp Duty Land Tax: Overview – GOV.UK Covers rates, exemptions, filing deadlines, and how SDLT applies to different property types
- Stamp Duty for Non-UK Residents – GOV.UK Explains the 2% surcharge and residency tests for overseas buyers
- Register an Overseas Entity – GOV.UK Required for overseas companies buying UK property. Includes verification, beneficial ownership rules, and penalties
- Leasehold Property: Overview – GOV.UK Explains leaseholder rights, service charges, lease extensions, and buying the freehold
Disclaimer
This page is provided for general informational purposes only. We are not tax advisors or solicitors, and this content does not constitute legal or financial advice. Buyers should seek professional guidance tailored to their individual circumstances before making any decisions.
