Compare Stamp Duty Scenarios
Side-by-side comparisons of stamp duty rates, thresholds, and costs across different buyer types, UK regions, and tax changes. Each comparison includes actual rate tables and worked examples at key property prices. For corporate purchases, see our dedicated company vs personal comparison covering the 17% flat rate, ATED, and 10-year break-even.
First-Time Buyer vs Standard Rates
First-time buyers pay no SDLT up to £300,000, saving up to £2,500 compared to standard rates.
Jump to comparisonEngland SDLT vs Scotland LBTT
England charges SDLT from £125,000 while Scotland's LBTT starts at £145,000. Scotland's 10% band kicks in far earlier.
Jump to comparisonStandard Residential vs Buy-to-Let
Buy-to-let and second home purchases attract a 5% surcharge on top of standard rates. On a £300,000 property, this adds £15,000.
Jump to comparisonPre vs Post April 2025 Rates
The nil-rate band dropped from £250,000 to £125,000 and FTB relief from £425,000 to £300,000 on 1 April 2025.
Jump to comparisonQuick Comparison Summary
| Comparison | £300,000 | £500,000 | Difference |
|---|---|---|---|
| First-Time Buyervs Standard | £0 vs £2,500 | £10,000 vs £12,500 | Save £2,500 |
| England SDLTvs Scotland LBTT | £2,500 vs £2,100 | £15,000 vs £23,350 | Varies by price |
| Standardvs Buy-to-Let | £2,500 vs £17,500 | £12,500 vs £37,500 | +5% surcharge |
| Pre April 2025vs Current Rates | £2,500 vs £5,000 | £12,500 vs £15,000 | +£2,500 standard |
| Companyvs Personal (>£500k) | £17,500 vs £17,500 | £85,000 vs £37,500 | 17% flat >£500k |
England & Northern Ireland. Scotland and Wales have different rates. Company >£500k = 17% flat rate.
First-Time Buyer vs Standard Stamp Duty Rates
Side-by-side comparison showing exactly how much first-time buyers save at every price point from £250,000 to £500,000.
Key Points
- •FTBs pay 0% up to £300,000 vs 0% up to £125,000 for standard buyers
- •Maximum FTB saving is £2,500 on properties up to £500,000
- •FTB relief only available on properties up to £500,000
- •Both joint buyers must be FTBs to qualify for relief
How FTB Relief Compares to Standard Rates
First-time buyer relief fundamentally restructures stamp duty by providing a significantly higher nil-rate band. While standard buyers pay 0% on just the first £125,000, first-time buyers pay nothing on the first £300,000. This single change delivers consistent savings across the entire £250,000 to £500,000 price range. Use our stamp duty calculator to see your exact liability.
The relief also simplifies the rate structure for qualifying purchases. Instead of navigating five progressive rate bands (0%, 2%, 5%, 10%, 12%), first-time buyers face just two bands: 0% up to £300,000 and 5% from £300,001 to £500,000. This creates a straightforward calculation where the maximum liability is capped at £10,000 for a £500,000 property. Our dedicated FTB calculator automates these calculations.
Because stamp duty is a progressive tax, calculated in slices across different rate bands, the saving comes from paying 0% on a larger portion of the purchase price. On a £350,000 property, for example, standard buyers pay tax on £225,000 of value (£125,001–£350,000 across two rate bands), while first-time buyers only pay tax on £50,000 (£300,001–£350,000 in one band). This mechanism ensures the £2,500 saving remains constant across most of the eligible price range. For detailed eligibility criteria, consult our comprehensive FTB guide.
Rate Bands Side by Side
The table below shows the stark difference in rate structures between standard SDLT and first-time buyer relief. Note how FTB relief eliminates the 2% band entirely and triples the nil-rate threshold.
Standard SDLT Rates
| Band | 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% |
First-Time Buyer Rates
| Band | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001–£500,000 | 5% |
| No relief above £500,000 | |
The simplified two-band structure for first-time buyers makes calculations straightforward and eliminates the complexity of the 2% band that standard buyers must navigate between £125,001 and £250,000.
Worked Examples at Key Price Points
The table below demonstrates the exact SDLT liability for both first-time buyers and standard buyers at six common price points. Notice how the £2,500 saving remains constant across the entire £250,000 to £500,000 range.
| Property Price | FTB SDLT | Standard SDLT | Saving |
|---|---|---|---|
| £250,000 | £0 | £2,500 | £2,500 |
| £300,000 | £0 | £2,500 | £2,500 |
| £350,000 | £2,500 | £7,500 | £5,000 |
| £400,000 | £5,000 | £10,000 | £5,000 |
| £450,000 | £7,500 | £12,500 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
Calculation Example (£350,000):
FTB: First £300,000 at 0% = £0, remaining £50,000 at 5% = £2,500. Total: £2,500
Standard: First £125,000 at 0% = £0, next £125,000 at 2% = £2,500, remaining £100,000 at 5% = £5,000. Total: £7,500
Saving: £5,000
The consistent £5,000 saving across the £350k–£500k range derives from a £2,500 saving in the £125k–£250k band (2% band which FTBs skip entirely) plus a £2,500 saving in the £250k–£300k band (5% standard vs 0% FTB). Below £300k, the saving is smaller because the second slice has not yet accrued. Above £500k, FTB relief ends entirely.
Who Qualifies as a First-Time Buyer?
HMRC defines FTB eligibility through strict criteria that must all be satisfied simultaneously:
- Never owned property anywhere: You must not have owned a residential property anywhere in the world, either solely or jointly, at any point in your life.
- Property price cap: The purchase price must not exceed £500,000. Properties priced at £500,001 or above receive no FTB relief whatsoever.
- Residential property only: The property must be intended as your main residence. Buy-to-let purchases do not qualify regardless of price.
- Not replacing a main residence: You cannot claim FTB relief if you currently own or have previously owned another main residence.
Joint Purchase Warning
For joint purchases, all buyers must individually qualify as first-time buyers. If even one person has previously owned property anywhere in the world, the entire purchase loses FTB relief eligibility. Both buyers would then pay standard rates in full.
Properties Over £500,000
First-time buyer relief operates as an all-or-nothing benefit that terminates abruptly at the £500,000 threshold. Properties priced at £500,001 or above receive no FTB relief. Buyers pay standard SDLT rates in full across all bands. This creates a significant "cliff edge" effect where a single pound over the limit can cost thousands in additional tax.
Cliff Edge Example: £510,000 Property
With FTB relief (if it applied): First £300,000 at 0% = £0, remaining £210,000 at 5% = £10,500. Total: £10,500
Actual cost (no relief above £500k): First £125,000 at 0% = £0, next £125,000 at 2% = £2,500, remaining £260,000 at 5% = £13,000. Total: £15,500
Additional tax: £5,000 (£15,500 – £10,500)
A property priced at £499,000 incurs £9,950 SDLT with FTB relief. The same property at £501,000 costs £15,550 at standard rates, an additional £5,600 despite just £2,000 more purchase price. HMRC scrutinizes arrangements to prevent artificial price manipulation purely to access FTB relief.
FTB Relief in Scotland and Wales
Scotland and Wales operate separate property tax systems with different approaches to first-time buyer relief. Neither mirrors the generous English/Northern Irish structure.
Scotland (LBTT)
Scotland's Land and Buildings Transaction Tax (LBTT) provides a more modest first-time buyer relief. The nil-rate threshold increases from £145,000 to £175,000, just £30,000 additional relief compared to England's £175,000 uplift. This delivers a maximum saving of £600 (£30,000 × 2% rate in the second band).
| Property Price | FTB LBTT | Standard LBTT | Saving |
|---|---|---|---|
| £175,000 | £0 | £600 | £600 |
| £250,000 | £3,100 | £3,700 | £600 |
| £300,000 | £5,850 | £6,450 | £600 |
Wales (LTT)
Wales offers no first-time buyer relief under its Land Transaction Tax (LTT) system. All buyers, regardless of previous ownership status, pay the same progressive rates starting at 0% up to £225,000, then 6% from £225,001 to £400,000.
A first-time buyer purchasing a £300,000 property in Cardiff pays £4,500 LTT, while the same buyer in Birmingham pays £0 SDLT with FTB relief, a £4,500 difference driven purely by jurisdiction.
England SDLT vs Scotland LBTT Comparison
Side-by-side comparison of Stamp Duty Land Tax (England) and Land and Buildings Transaction Tax (Scotland) with rate bands, thresholds, and worked examples.
Quick Comparison
- England nil-rate: £125,000 | Scotland nil-rate: £145,000
- England FTB threshold: £300,000 | Scotland FTB: £175,000
- England surcharge: 5% | Scotland ADS: 8%
- Generally cheaper: Scotland below ~£325,000, England above
SDLT vs LBTT Overview
England and Northern Ireland use Stamp Duty Land Tax (SDLT), administered by HMRC, while Scotland has its own devolved system called Land and Buildings Transaction Tax (LBTT), administered by Revenue Scotland. Calculate your exact liability using our stamp duty calculator for England or Wales.
Both are progressive taxes with multiple rate bands, but Scotland's bands are structured differently, resulting in significant differences in tax liability depending on your property price. For detailed Scottish property tax guidance, see our comprehensive Scotland LBTT guide or our England SDLT guide.
Key Insight
Scotland's higher nil-rate band (£145,000) makes it cheaper for properties below £325,000, but England's lower rates above £325,000 make it cheaper for higher-value properties. Use our dedicated Scotland calculator for precise LBTT figures.
Standard Rate Bands Compared
England SDLT Rates
| Band | 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% |
Scotland LBTT Rates
| Band | Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001–£250,000 | 2% |
| £250,001–£325,000 | 5% |
| £325,001–£750,000 | 10% |
| Over £750,000 | 12% |
Critical Difference
Scotland's 10% band starts at £325,001 (vs £925,001 in England), making properties between £325,000 and £925,000 significantly more expensive in Scotland.
Side-by-Side Rate Comparison Table
| Property Value | England SDLT Rate | Scotland LBTT Rate |
|---|---|---|
| Up to £125,000 | 0% | – |
| £125,001–£145,000 | 2% | – |
| Up to £145,000 | – | 0% |
| £145,001–£250,000 | 2% | 2% |
| £250,001–£325,000 | 5% | 5% |
| £325,001–£750,000 | 5% | 10% |
| £750,001–£925,000 | 5% | 12% |
| £925,001–£1,500,000 | 10% | 12% |
| Over £1,500,000 | 12% | 12% |
Scotland's 10% band starts at £325,001 versus England's 10% band starting at £925,001, a £600,000 difference that makes Scotland significantly more expensive for mid-to-high value properties.
First-Time Buyer Relief Compared
England FTB Relief
- 0% up to £300,000 (on properties up to £500,000)
- 5% from £300,001–£500,000
- Standard rates apply above £500,000
- Maximum saving: £2,500
Scotland FTB Relief
- 0% up to £175,000
- Standard LBTT rates apply above £175,000
- No maximum property value limit
- Maximum saving: £600
Example: A first-time buyer purchasing a £400,000 property pays:
- England: £5,000 (0% to £300k, 5% on £100k)
- Scotland: £11,750 (0% to £175k, then standard bands)
- England saves £6,750 at this price point
Verdict: England's FTB relief is significantly more generous for properties between £175,000 and £500,000, offering up to £2,500 in savings vs Scotland's £600 maximum.
Additional Property Surcharges
Both regions charge additional rates for second homes and buy-to-let properties, but Scotland's surcharge is significantly higher:
England Surcharge
5% added to each band (from 31 October 2024)
The 5% surcharge is added on top of the standard SDLT rates for each portion of the purchase price.
Scotland ADS
8% on full purchase price (from Dec 2024)
Additional Dwelling Supplement (ADS) is a flat 8% charged on the entire property value.
Example: £300,000 second home
| Region | Standard Tax | Surcharge | Total |
|---|---|---|---|
| England | £5,000 | £7,500 | £12,500 |
| Scotland | £4,600 | £24,000 | £28,600 |
Scotland's ADS is significantly higher: At £300,000, Scotland's total tax with ADS is £28,600 vs England's £12,500, a difference of £16,100 (129% more expensive).
Worked Examples at £300k, £500k, £750k
£300,000 Property
England SDLT
0% on £125,000 = £0
2% on £125,000 = £2,500
5% on £50,000 = £2,500
Total: £5,000
Scotland LBTT
0% on £145,000 = £0
2% on £105,000 = £2,100
5% on £50,000 = £2,500
Total: £4,600
Scotland £400 cheaper
£500,000 Property
England SDLT
0% on £125,000 = £0
2% on £125,000 = £2,500
5% on £250,000 = £12,500
Total: £15,000
Scotland LBTT
0% on £145,000 = £0
2% on £105,000 = £2,100
5% on £75,000 = £3,750
10% on £175,000 = £17,500
Total: £23,350
England £8,350 cheaper
£750,000 Property
England SDLT
0% on £125,000 = £0
2% on £125,000 = £2,500
5% on £500,000 = £25,000
Total: £27,500
Scotland LBTT
0% on £145,000 = £0
2% on £105,000 = £2,100
5% on £75,000 = £3,750
10% on £425,000 = £42,500
Total: £48,350
England £20,850 cheaper
Which Country Is Cheaper?
Scotland is Generally Cheaper:
- Properties up to £325,000 benefit from Scotland's higher nil-rate band (£145,000 vs £125,000)
- Low-value properties (under £200,000) see consistent savings of around £400
- First-time buyers purchasing under £175,000 save up to £600
England is Generally Cheaper:
- Properties above £325,000 benefit from England's higher 10% threshold (£925,001 vs £325,001)
- First-time buyers purchasing between £175,000–£500,000 save significantly with England's £300,000 threshold
- Additional properties are much cheaper due to England's 5% surcharge vs Scotland's 8% ADS
Key Differences Beyond Rates
| Aspect | England (SDLT) | Scotland (LBTT) |
|---|---|---|
| Administrator | HMRC | Revenue Scotland |
| Filing Deadline | 14 days from completion | 30 days from effective date |
| Return Form | SDLT1 | LBTT Return |
| Surcharge | 5% added to each band | 8% ADS on full price |
| Surcharge Refund Window | 3 years (if selling main home) | 36 months from 1 Apr 2024 |
Important: Scotland's 30-day filing deadline (vs England's 14 days) provides more time, but missing either deadline results in automatic penalties.
Frequently Asked Questions About England vs Scotland Stamp Duty
Is stamp duty cheaper in Scotland or England?
It depends on the property price. Scotland is cheaper for properties up to approximately £325,000 due to its higher nil-rate band (£145,000 vs £125,000). England becomes cheaper above £325,000 because Scotland's 10% band starts at £325,001 while England's starts at £925,001. At £500,000, England is £8,350 cheaper. At £750,000, England is £20,850 cheaper.
What is ADS in Scotland?
ADS (Additional Dwelling Supplement) is Scotland's equivalent of England's additional property surcharge. It's a flat 8% charge on the full purchase price for buy-to-let properties and second homes (increased from 6% in December 2024). This is significantly higher than England's 5% surcharge, making additional property purchases much more expensive in Scotland.
Do Scottish first-time buyers pay less?
Not usually. Scotland's FTB relief raises the nil-rate threshold to £175,000 (maximum saving £600), while England's FTB relief goes to £300,000 (maximum saving £5,000). A FTB buying at £400,000 pays £11,750 in Scotland versus £5,000 in England, a £6,750 difference in England's favour.
How does LBTT compare to SDLT?
LBTT (Land and Buildings Transaction Tax) is Scotland's devolved equivalent to England's SDLT. Both use progressive rate bands, but Scotland has more bands and a different structure. Scotland's nil-rate band is higher (£145,000 vs £125,000), but its 10% band starts much earlier (£325,001 vs £925,001), making it more expensive for properties above £325,000.
Can I choose which system applies?
No. The tax system is determined by where the property is located, not where you live. Properties in Scotland are subject to LBTT administered by Revenue Scotland. Properties in England and Northern Ireland are subject to SDLT administered by HMRC. Properties in Wales are subject to LTT administered by the Welsh Revenue Authority.
Calculate Your Exact Liability
Standard vs Buy-to-Let Stamp Duty 2026
Compare standard residential SDLT rates with buy-to-let rates including the 5% additional property surcharge. See exactly how much extra landlords and second home buyers pay at every price point.
Key Points
- •BTL/second home buyers pay 5% surcharge on TOP of standard rates (from Oct 2024)
- •Surcharge applies to the full purchase price, added to each band
- •On a £300,000 property: standard pays £5,000, BTL pays £20,000
- •Refund possible only when replacing main residence (3-year window)
What is the Additional Property Surcharge?
The additional property surcharge is a 5% tax added on top of standard SDLT rates when purchasing a buy-to-let property or second home in England and Northern Ireland. Calculate your exact BTL liability using our stamp duty calculator.
This surcharge was increased from 3% to 5% on 31 October 2024, making it significantly more expensive to build a property portfolio or purchase holiday homes. The surcharge is calculated on the full purchase price and added to each rate band. Our specialized BTL calculator includes the surcharge automatically. Investors should also consider using our rental yield calculator to ensure returns justify the higher upfront tax cost.
Unlike standard SDLT which is charged in bands, the 5% surcharge applies to the entire purchase price. This means buying investment property is now considerably more expensive than purchasing a primary residence. Explore our comprehensive BTL guide for detailed planning strategies.
Important: The surcharge applies even if you've never owned property before. If your first property purchase is a buy-to-let investment rather than your main home, you pay the higher rates.
Rate Bands Compared
The table below shows how the 5% surcharge is added to each standard SDLT rate band.
| Property Value Band | Standard Rate | BTL Rate (+5%) |
|---|---|---|
| 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% |
Note: These rates apply to England and Northern Ireland only. Scotland and Wales have separate tax systems (see below).
Worked Examples
| Property Price | Standard SDLT | BTL SDLT | Surcharge Cost |
|---|---|---|---|
| £150,000 | £500 | £8,000 | £7,500 |
| £250,000 | £2,500 | £15,000 | £12,500 |
| £300,000 | £5,000 | £20,000 | £15,000 |
| £400,000 | £10,000 | £30,000 | £20,000 |
| £500,000 | £15,000 | £40,000 | £25,000 |
| £750,000 | £27,500 | £65,000 | £37,500 |
Example Calculation: £300,000 Buy-to-Let
- • First £125,000 @ 5% = £6,250
- • Next £125,000 @ 7% = £8,750
- • Final £50,000 @ 10% = £5,000
- Total SDLT: £20,000
Compare to standard residential: £5,000. The surcharge adds £15,000 (equivalent to 5% of the full purchase price).
When Does the Surcharge Apply?
The 5% additional property surcharge applies in the following scenarios:
Surcharge Always Applies To:
- •Buy-to-let purchases – Any property purchased for rental income, even if it's your first property
- •Second homes – Holiday homes, weekend retreats, or any additional residential property
- •Additional properties – Buying any property when you already own another residential property
- •Property companies – Companies purchasing residential property face a flat 17% rate above £500,000 (see company vs personal purchase for the full corporate tax picture)
Temporary Surcharge Payment
If you are buying a new main residence before selling your old one, you must pay the 5% surcharge upfront. However, you can claim a refund if you sell your previous main residence within 3 years (see Refund Rules below).
When Surcharge Does NOT Apply
- •Purchasing your only or main residence (and you don't own other property)
- •Property valued at £40,000 or less (unless purchased with other properties)
- •Caravans, mobile homes, or houseboats (different rules apply)
Refund Rules
If you are replacing your main residence, you can claim a refund of the 5% additional property surcharge if you sell your previous main home within 3 years of purchasing the new property.
Refund Requirements:
- Old property was your only or main residence
- New property becomes your main residence
- Old property sold within 3 years of new purchase
- Claim submitted within 12 months of sale completion
How to Claim Your Refund
To claim your surcharge refund, you must amend your original SDLT return via HMRC's online service. You'll need your SDLT reference number, completion date of the sale of your old property, and evidence that the old property was your main residence. HMRC typically processes refunds within 4–6 weeks.
Important: Buy-to-let purchases are NOT eligible for surcharge refunds. The refund only applies when replacing your main residence, not when building an investment portfolio. For full tax planning strategies, see our landlord stamp duty guide.
Scotland and Wales Surcharges
Scotland: Additional Dwelling Supplement (ADS)
Scotland's LBTT includes an Additional Dwelling Supplement (ADS) of 8% on the full purchase price for second homes and buy-to-let properties. This is 3% higher than England's surcharge, making Scotland's additional property tax the highest in the UK. The ADS applies to properties over £40,000 and is added on top of standard LBTT rates.
Wales: Higher Rates for Additional Properties
Wales uses Land Transaction Tax (LTT) with separate higher-rate bands for additional properties. Instead of a flat surcharge, Wales applies increased rates across different price bands:
| Band | Standard Rate | Higher Rate |
|---|---|---|
| Up to £180,000 | 0% | 5% |
| £180,001–£250,000 | 6% | 8.5% |
| Over £250,000 | 7.5%+ | 10%+ |
Both Scotland and Wales offer similar refund provisions when replacing your main residence, subject to their respective time limits and claim procedures.
Stamp Duty Before and After April 2025
Compare the SDLT threshold reversions that took effect on 1 April 2025. Note: the additional property surcharge had already risen from 3% to 5% on 31 October 2024. The 1 April 2025 changes were the nil-rate band reversions only.
Key Changes from 1 April 2025
- •Standard nil-rate band reduced: £250,000 → £125,000
- •FTB nil-rate band reduced: £425,000 → £300,000
- •FTB property limit reduced: £625,000 → £500,000
- •Additional property surcharge increased: 3% → 5% (from 31 Oct 2024)
What Changed in April 2025?
On 1 April 2025, temporary stamp duty thresholds introduced in September 2022 expired, reverting to their pre-2022 levels. These changes affected all buyers in England and Northern Ireland purchasing residential property. Use our stamp duty calculator to see current rates.
The changes were announced in the Autumn Budget 2024 and had been anticipated since the temporary thresholds were originally introduced with a sunset clause. The result is higher stamp duty bills for most buyers, particularly those purchasing properties between £125,000 and £625,000. For full details on all changes, see our comprehensive guide on current rates.
Threshold Changes Summary
| Change | Before April 2025 | From April 2025 |
|---|---|---|
| Standard nil-rate band reduced from £250,000 to £125,000 | £250,000 | £125,000 |
| First-time buyer nil-rate band reduced from £425,000 to £300,000 | £425,000 | £300,000 |
| First-time buyer relief threshold reduced from £625,000 to £500,000 | £625,000 | £500,000 |
Standard Rate Bands: Before and After
The most significant change for standard buyers is the reduction in the nil-rate band from £250,000 to £125,000 and the introduction of a new 2% band for properties between £125,001 and £250,000. Explore the detailed history in our April 2025 changes guide.
Before April 2025
| Band | Rate |
|---|---|
| Up to £250,000 | 0% |
| £250,001–£925,000 | 5% |
| £925,001–£1,500,000 | 10% |
| Over £1,500,000 | 12% |
From April 2025 (Current)
| Band | 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% |
The introduction of the 2% band between £125,001 and £250,000 means that buyers purchasing properties in this range now face stamp duty bills, whereas previously they paid nothing.
Complete Before vs After Rate Tables
Standard Rates Change
Old nil-rate: £250,000
New nil-rate: £125,000
–£125,000 threshold
FTB Threshold Change
Old threshold: £425,000
New threshold: £300,000
–£125,000 threshold
Surcharge Increase
Old surcharge: 3%
New surcharge: 5%
+2 percentage points
Cost Increase at Every Price Point
| Property Price | Before April 2025 | After April 2025 | Extra Cost |
|---|---|---|---|
| £250,000 | £0 | £2,500 | +£2,500 |
| £350,000 | £5,000 | £7,500 | +£2,500 |
| £500,000 | £12,500 | £15,000 | +£2,500 |
| £750,000 | £25,000 | £27,500 | +£2,500 |
| £1,000,000 | £38,750 | £41,250 | +£2,500 |
Impact on First-Time Buyers
First-time buyers (FTBs) face two significant changes. See our dedicated analysis of the FTB impact from April 2025 for full detail:
- The FTB nil-rate band reduced from £425,000 to £300,000
- The property price limit for FTB relief reduced from £625,000 to £500,000
Before April 2025: FTBs paid 0% on the first £425,000 and 5% on the portion between £425,001 and £625,000 (for properties up to £625,000).
From April 2025: FTBs pay 0% on the first £300,000 and 5% on the portion between £300,001 and £500,000 (for properties up to £500,000).
Critical Change for Higher-Priced Properties
First-time buyers purchasing properties priced between £500,001 and £625,000 lost access to FTB relief entirely. They now pay standard rates with no discount.
A FTB purchasing at £550,000 previously paid £6,250 in stamp duty. From April 2025, they pay the standard rate of £17,500, an increase of £11,250.
First-Time Buyer Detailed Analysis
| Price | FTB (Before) | FTB (After) | Increase |
|---|---|---|---|
| £300,000 | £0 | £0 | £0 (No change) |
| £400,000 | £0 | £5,000 | +£5,000 |
| £500,000 | £3,750 | £10,000 | +£6,250 |
| £550,000 | £6,250 | £17,500 | +£11,250 (lost relief) |
Surcharge Increase: 3% to 5%
The additional property surcharge, applied to buyers purchasing additional dwellings such as buy-to-let properties or second homes, increased from 3% to 5%. This surcharge is applied to the entire purchase price, not just the portions above the nil-rate band. The increase significantly affects landlords and investors. Corporate buyers face an even higher cliff: a flat 17% rate on residential properties over £500,000, which is the focus of our company vs personal comparison.
Example: £300,000 Buy-to-Let Purchase
Standard SDLT: £5,000
Before April 2025: £5,000 + (£300,000 × 3%) = £5,000 + £9,000 = £14,000 total
From April 2025: £5,000 + (£300,000 × 5%) = £5,000 + £15,000 = £20,000 total
Extra cost: £6,000
Who Was Hit Hardest?
Additional Property Buyers (Worst Hit)
The surcharge rising from 3% to 5% hit buy-to-let investors and second home buyers hardest. A £300,000 BTL property went from £11,500 (pre-October 2024: 3% surcharge with £250,000 nil-rate band) to £20,000 (post-April 2025: 5% surcharge with £125,000 nil-rate band), an increase of £8,500. For the full analysis, see our guide on the second home impact of these changes.
First-Time Buyers £300k–£500k (Heavily Impacted)
FTBs in this price range saw the largest absolute increases. A buyer at £400,000 went from £0 to £5,000. At £500,000: £3,750 to £10,000 (+£6,250). In high-cost regions like London, many FTBs lost access to relief entirely.
Non-Residents (Surcharges Stack)
Non-UK residents buying additional properties face both the 5% additional property surcharge AND the 2% non-resident surcharge, stacking to 7% on top of standard rates. This makes UK property investment extremely expensive for overseas buyers.
Worked Examples: How Much More?
| Property Price | Buyer Type | Before April 2025 | Current Rate | Extra Cost |
|---|---|---|---|---|
| £200,000 | Standard | £0 | £1,500 | +£1,500 |
| £250,000 | Standard | £0 | £2,500 | +£2,500 |
| £300,000 | Standard | £2,500 | £5,000 | +£2,500 |
| £300,000 | First-Time Buyer | £0 | £0 | £0 |
| £400,000 | First-Time Buyer | £0 | £5,000 | +£5,000 |
| £500,000 | First-Time Buyer | £3,750 | £10,000 | +£6,250 |
| £300,000 | BTL (surcharge) | £9,000 | £15,000 | +£6,000 |
Note: BTL example shows surcharge only. Total SDLT would also include the standard rate component.
Frequently Asked Questions About Pre vs Post April 2025 Changes
How much more stamp duty after April 2025?
Standard residential buyers typically pay £2,500 more due to the nil-rate band reduction from £250,000 to £125,000. First-time buyers at £400,000 pay £5,000 more (was £0, now £5,000). Buy-to-let investors face even larger increases: a £300,000 BTL property costs £6,000 more in stamp duty surcharge alone (3% to 5% increase).
Did first-time buyer relief change?
Yes, significantly. The FTB nil-rate threshold dropped from £425,000 to £300,000, and the maximum property price for relief reduced from £625,000 to £500,000. FTBs buying at £400,000 now pay £5,000 instead of £0. FTBs buying above £500,000 lost access to relief entirely and pay standard rates.
What was the stamp duty holiday?
The "stamp duty holiday" was temporary COVID-era relief (July 2020–September 2022) that raised the nil-rate band to £500,000, then tapered to £250,000. That £250,000 threshold remained until 1 April 2025, when rates reverted to pre-COVID levels (£125,000 nil-rate). There is no current holiday.
Can I claim a refund if I completed after April 2025?
No. The April 2025 rates apply to all transactions completing on or after 1 April 2025. Only transactions that completed on or before 31 March 2025 qualified for the old rates. The completion date (not exchange date) determines which rates apply.
When did the 5% surcharge start?
The 5% additional property surcharge came into effect on 31 October 2024 as part of the Autumn Budget 2024, replacing the previous 3% surcharge. This was a separate change from the 1 April 2025 threshold changes. It applies to all additional dwellings (buy-to-let, second homes) in England and Northern Ireland.
Reviewed by
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Calculate My Stamp Duty UK to help buyers understand the complex world of property transaction taxes.