Stamp Duty Holiday History & Rate Changes Timeline
Complete timeline of UK stamp duty rate changes from 2003 to 2026, including the COVID stamp duty holiday, mini-budget changes, and April 2025 threshold reductions.
In this article
Key Stamp Duty Milestones
- •December 2003: SDLT replaced old stamp duty system
- •November 2017: First-time buyer relief introduced
- •July 2020: COVID stamp duty holiday began (£500k nil rate)
- •September 2022: Mini-budget raised thresholds again
- •April 2025: Thresholds returned to 2022 levels
Timeline Overview
Stamp duty on property has undergone frequent changes since 2003, with governments using threshold adjustments and relief schemes to influence the housing market. From temporary holidays during the COVID pandemic to permanent reliefs for first-time buyers, the tax has been a key policy lever for successive administrations.
This timeline traces major reforms from the introduction of SDLT in 2003 through to the current thresholds in 2026, showing how buyers' tax liabilities have fluctuated over time.
Why rates change so often
Stamp duty is one of the government's largest sources of property tax revenue (approximately £15 billion annually). Changes are often made to stimulate the housing market during downturns or to raise revenue during budget deficits. First-time buyer relief aims to help younger people onto the property ladder, while additional property surcharges target second-home owners and landlords.
Pre-2003: Old Stamp Duty
Before December 2003, stamp duty was charged on the entire purchase price at a single rate, known as the "slab" system. This created significant cliff edges where buyers could face large tax jumps for small price increases.
The slab system problem
Example: Cliff edge penalty
Property at £250,000: 1% on £250,000 = £2,500 stamp duty
Property at £250,001: 3% on £250,001 = £7,500 stamp duty
One pound extra = £5,000 more tax!
This unfair system led to widespread price manipulation, with buyers and sellers negotiating prices just below thresholds to avoid tax jumps. Properties at £249,999 were far more common than at £250,001.
December 2003: SDLT Introduced
On 1 December 2003, the government introduced Stamp Duty Land Tax (SDLT) to replace the old stamp duty regime. Initially, SDLT still used a slab system, but it was reformed again in December 2014 to use marginal rates.
December 2014: Marginal rate reform
The 2014 reform was the most significant change in stamp duty history. The slab system was replaced with a marginal rate system similar to income tax, where different portions of the purchase price are taxed at different rates.
Fairer system example
Property at £250,000 (post-2014):
0% on first £125,000 = £0
2% on next £125,000 (£125k-£250k) = £2,500
Total: £2,500
This change saved 98% of homebuyers money and eliminated cliff edges. A £250,000 property now cost £2,500 in stamp duty instead of £2,500 or £7,500 depending on which side of the threshold you fell.
November 2017: First-Time Buyer Relief
On 22 November 2017, the government introduced first-time buyer relief to help younger people get onto the property ladder. This relief gave first-time buyers a significant discount on properties up to £500,000.
Original FTB relief rates (2017)
| Purchase Price | FTB Rate | Standard Rate |
|---|---|---|
| Up to £300,000 | 0% | 0-2% |
| £300,001 - £500,000 | 5% | 5% |
| Over £500,000 | No relief | 5-12% |
This relief saved first-time buyers up to £5,000 on properties between £300,000 and £500,000. A £400,000 first home now cost £5,000 in stamp duty instead of £10,000.
Impact on the market
First-time buyer relief significantly boosted the proportion of FTBs in the market, rising from 33% in 2016 to over 50% by 2019. However, critics argued it inflated prices in the £300,000-£500,000 segment by increasing demand.
2020-2021: COVID Stamp Duty Holiday
In response to the COVID-19 pandemic and the resulting property market freeze, Chancellor Rishi Sunak announced a temporary stamp duty holiday on 8 July 2020. This was the most generous stamp duty relief ever introduced in the UK.
Holiday timeline
8 July 2020 - 30 June 2021
Nil rate threshold raised to £500,000 (all buyers)
Savings: up to £15,000
1 July 2021 - 30 September 2021
Nil rate threshold reduced to £250,000 (taper period)
Savings: up to £2,500
1 October 2021 onwards
Nil rate threshold returned to £125,000
Holiday ended
Market impact
The stamp duty holiday triggered a property boom, with house prices rising 10-15% during the period. Completions surged as buyers rushed to beat the deadline, leading to:
- Huge backlogs at solicitors and surveyors
- Gazumping and bidding wars
- Extended completion times (often 4-6 months)
- Many buyers missing the deadline and losing savings
Did the holiday work?
The holiday successfully stimulated the property market, preventing a pandemic-induced crash. However, it also accelerated price growth, making housing less affordable in the long term. HMRC reported £6.4 billion in foregone revenue during the period.
September 2022: Mini-Budget Changes
On 23 September 2022, Chancellor Kwasi Kwarteng announced an emergency "mini-budget" including significant stamp duty cuts. The changes took effect immediately for transactions completing on or after that date.
September 2022 thresholds
| Buyer Type | Old Threshold | New Threshold | Saving |
|---|---|---|---|
| Standard buyers | £125,000 | £250,000 | £2,500 |
| First-time buyers | £300,000 | £425,000 | Up to £6,250 |
| FTB max price | £500,000 | £625,000 | - |
These changes were intended to boost the flagging property market in autumn 2022 and help offset rising mortgage rates. The higher FTB threshold particularly benefited buyers in London and the South East.
Short-lived government, lasting policy
While Kwarteng's mini-budget was largely reversed and he was sacked within weeks, the stamp duty changes remained in place. They were set to be temporary (until March 2025) but were extended multiple times before finally reverting in April 2025.
April 2025: Threshold Changes
On 1 April 2025, stamp duty thresholds returned to their pre-September 2022 levels, ending the temporary relief period. This marked a significant increase in stamp duty for many buyers.
Current thresholds (2026)
| Threshold | Sept 2022 - Mar 2025 | April 2025 onwards |
|---|---|---|
| Standard nil rate | £250,000 | £125,000 |
| FTB nil rate | £425,000 | £300,000 |
| FTB max price | £625,000 | £500,000 |
Impact on buyers (examples)
£300,000 home (standard buyer):
Before April 2025: £2,500
After April 2025: £5,000 (+£2,500)
£450,000 home (first-time buyer):
Before April 2025: £1,250
After April 2025: £7,500 (+£6,250)
The April 2025 changes raised approximately £2 billion annually for the Treasury but represented a significant setback for first-time buyers, particularly in expensive regions like London and the South East.
What's Next for Stamp Duty?
Stamp duty remains a politically contentious tax. Opposition parties have called for fundamental reform or abolition, while the government defends it as a progressive tax on wealth.
Potential future changes
Permanent FTB relief increase
Both major parties have proposed raising FTB thresholds permanently to help younger buyers. This could see the £300,000 nil rate rise to £425,000 or higher.
Higher surcharge on additional properties
The 3% surcharge on second homes and buy-to-lets could increase to 5% or more to discourage landlords and investors from competing with first-time buyers.
Regional variations
Some experts suggest different thresholds for different regions (e.g., higher in London and the South East) to reflect local property prices.
Complete abolition
A minority view proposes abolishing stamp duty entirely and replacing it with an annual property tax or higher council tax rates. Critics argue stamp duty distorts the housing market by discouraging people from moving.
Stay informed
Stamp duty changes are typically announced in Spring or Autumn budgets (usually March and November). If you're planning to buy, keep an eye on Treasury announcements and consider timing your purchase around budget dates if possible.
Nil Rate Threshold Comparison
| Period | Standard | First-Time Buyer | Notes |
|---|---|---|---|
| Dec 2003 - Nov 2017 | £125,000 | - | No FTB relief |
| Nov 2017 - Jul 2020 | £125,000 | £300,000 | FTB relief introduced |
| Jul 2020 - Jun 2021 | £500,000 | £500,000 | COVID holiday peak |
| Jul 2021 - Sep 2021 | £250,000 | £300,000 | COVID holiday taper |
| Oct 2021 - Sep 2022 | £125,000 | £300,000 | Holiday ended |
| Sep 2022 - Mar 2025 | £250,000 | £425,000 | Mini-budget changes |
| Apr 2025 - Present | £125,000 | £300,000 | Current rates |
Frequently Asked Questions
What was the COVID stamp duty holiday?
The COVID stamp duty holiday ran from 8 July 2020 to 30 September 2021. It raised the nil rate threshold to £500,000, then £250,000, before returning to £125,000. The holiday saved buyers up to £15,000 and was designed to stimulate the property market during the pandemic.
When was first-time buyer relief introduced?
First-time buyer relief was introduced on 22 November 2017. It gave first-time buyers a nil rate threshold of £300,000 (up to properties worth £500,000), saving up to £5,000 compared to standard rates. The relief remains in place today.
What changed in the September 2022 mini-budget?
The September 2022 mini-budget raised the standard nil rate threshold from £125,000 to £250,000 and the first-time buyer threshold from £300,000 to £425,000. These higher thresholds were temporary and reverted to previous levels in April 2025.
What are the current stamp duty thresholds in 2026?
As of April 2025, the standard nil rate threshold is £125,000 and first-time buyers pay no stamp duty up to £300,000. Properties over £500,000 do not qualify for first-time buyer relief. The 3% surcharge on additional properties remains in effect.
When did stamp duty become SDLT?
Stamp duty on land transactions (SDLT) replaced the old stamp duty system on 1 December 2003. SDLT introduced the "slab" system initially, which was later replaced by the marginal rate system in December 2014, making the tax fairer and more progressive.
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Calculate NowEmma 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 Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.