Let's Talk About Stamp Duty: Understanding Liability Even If You Are Not a First Time Buyer

Over recent weeks, there has been a lot of news coverage surrounding Stamp Duty and the different rates you pay depending on whether the property is your main home. Stamp Duty has a long history in the UK. It was first introduced in 1694 during the reign of William and Mary as a tax on legal documents to help fund England’s war against France. Over the centuries, it evolved into a property tax. The modern version we know today, Stamp Duty Land Tax (SDLT), replaced the old system on 1 December 2003 and applies to property purchases in England and Northern Ireland (Scotland and Wales operate their own systems).

How Stamp Duty Works

Stamp Duty Land Tax (SDLT) is a tax paid by property buyers when purchasing houses, flats, land, or buildings in England and Northern Ireland. Despite its name, it no longer requires physical stamps – it’s a self-assessed transfer tax that must be declared to HMRC. The amount is based on a percentage of the property price and is payable upon completion of your purchase. When budgeting for a new home, it’s essential to factor this cost into your plans if it applies to your purchase price.

Current SDLT Rates (2025 – England & Northern Ireland)

Stamp Duty Land Tax (SDLT) remains one of the most confusing aspects of buying property in the UK. With significant changes implemented in April 2025, many buyers are facing higher costs and new rules.

For residential properties, the tax is calculated on portions of the purchase price within each band:

You usually pay 5% on top of these rates (per bracket) if you own another residential property.

First-Time Buyers enjoy a special relief:

• 0% on the first £300,000
• 5% on the portion between £300,001 and £500,000
• No relief if the purchase price exceeds £500,000

Rates if you’re not a UK resident

• If you’re not present in the UK for at least 183 days (6 months) during the 12 months before your purchase you are ‘not a UK resident’ for the purposes of SDLT.
• You’ll usually pay a 2% surcharge if you’re buying a residential property in England or Northern Ireland.

Seeking Advice

If you own more than one property, such as a second home, holiday home, or buy-to-let, it’s advisable to consult a tax accountant or SDLT Tax Specialist. Your conveyancer will handle the transaction based on the information you provide, but a tax specialist can ensure you’re paying the correct SDLT for your personal circumstances.

Possible Future Changes

There have been recent indications that the government is considering an overhaul of the stamp duty system, with potential changes expected in the November Budget. We will, of course, keep you updated as more details emerge.