Stamp Duty changes 2025: What is the Stamp Duty threshold?
From the moment you buy your first house, Stamp Duty becomes a standard part of life. Whether you’re moving into a brand new family home or putting a deposit down on a holiday cottage, you’ll need to pay the taxes on it sooner or later. With the recent Stamp Duty change in 2025, however, your Stamp Duty may be due a lot sooner than you anticipated - here’s everything you need to know about the new tarrifs.
What is Stamp Duty?
Stamp Duty (or SDLT) is a tax placed on property transactions in the UK. SDLT works by charging tax as a percentage of the property price over certain thresholds. You pay stamp duty when you complete on a house, usually within 14 days of the final transaction.
Stamp Duty Calculator
How much is Stamp Duty?
Stamp Duty (or SDLT) is a tax placed on property transactions in the UK. SDLT works by charging tax as a percentage of the property price over certain thresholds. You pay stamp duty when you complete on a house, usually within 14 days of the final transaction.
Do first time buyers pay Stamp Duty?
First time buyers are eligible for a discount on Stamp Duty Land Tax. This discount is directly influenced by the price of the property, and was cut back to a lower threshold in 2025. As a first time buyer, you’ll receive the following tax rates on properties under £500,000:
Why do we pay Stamp Duty?
Like all taxes, Stamp Duty helps to fund national systems such as the NHS and state schools. It serves as an additional method of obtaining money for the Treasury, which keeps the UK’s economy stable. Between 2023 and 2024 the government obtained £11.6 billion from Stamp Duty alone, providing funds for defence, social services, transport, and the NHS.
The origins of Stamp Duty
Stamp Duty began as a way to fund the Nine Years War in 1694. It was intended to last for a maximum of 4 years, but was extended indefinitely after it resulted in a massive boost to British funds. We pay the same tax today, with new thresholds to match inflation.
Can you add stamp duty to your mortgage?
At Davidsons, we’re happy to provide mortgage advice to help you find the best solution for you. If you’d like to add Stamp Duty tax to your mortgage, simply talk to our team of professionals for some helpful information on the pros and cons of doing so.
