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 →