UK Stamp Duty (SDLT) Calculator 2025 – First‑Time Buyer & Additional Property

Introduction

Buying a property in the UK? Use this guide to estimate 2025 SDLT with first‑time buyer relief or additional property surcharges.

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Inputs

• Purchase price and property type
• First‑time buyer status
• Additional property (surcharge)

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Output

• SDLT bands and totals
• Reliefs or surcharges applied

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Tips

• Check regional variations (e.g., LBTT, LTT)
• Consider completion timing vs threshold changes
• Budget for legal and moving costs

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Related Tools

• Mortgage Calculator: /calculator
• Rent vs Buy by City 2025: /calculator
• Take‑Home Pay 2025: /calculator

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CTA: Estimate Your SDLT

Enter the price and status to see your 2025 stamp duty before you make an offer.

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SDLT 101: How the Banding Works (Illustrative)

SDLT uses progressive bands similar to income tax. Each slice of the property price is taxed at the rate for that band; reliefs and surcharges modify the total. Always confirm current thresholds for England and Northern Ireland; Scotland (LBTT) and Wales (LTT) use separate systems.

Key elements:

• First‑time buyer relief: reduces/waives SDLT up to a threshold if you and any co‑buyer qualify as true first‑time buyers.
• Additional property surcharge: an extra percentage on top of standard rates when buying a second home or buy‑to‑let.
• Reclaim possibility: in some scenarios you can reclaim surcharge if you sell your main residence within allowed timeframes (rules apply).
• Leasehold considerations: premiums and net present value of rent can affect SDLT on leases.

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Worked Examples (Illustrative Only)

Example A: First‑Time Buyer Flat

• Price £300,000; full first‑time buyer relief applies per current thresholds (verify).
• Taxed by bands: lower bands relieved, higher bands taxed at marginal rate.
• Outcome: reduced total SDLT vs standard buyer.

Example B: Standard Buyer House

• Price £525,000; no FTB relief.
• Apply standard bands; compute slice by slice.
• Outcome: standard SDLT due; consider timing if thresholds change.

Example C: Additional Property (Buy‑to‑Let)

• Price £400,000; surcharge rate applies to all bands.
• SDLT = standard calculation + surcharge on each band portion.
• Consider future reclaim if main residence is sold within the allowed window.

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Region‑Specific Notes

• Scotland: Land and Buildings Transaction Tax (LBTT) with different bands; FTB relief rules differ.
• Wales: Land Transaction Tax (LTT) with separate thresholds and second‑home rules.
• London premiums: Price levels are higher; small threshold changes can materially impact buyers—run scenarios.

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Practical Tips for Buyers

• Get written quotes including SDLT from your conveyancer early.
• If near a threshold, scenario‑test slightly higher/lower prices to see marginal SDLT changes.
• Align completion dates with announced policy changes where feasible.
• Budget for surveys, legal fees, moving, and furnishing alongside SDLT.

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FAQs

Q: What qualifies as a first‑time buyer?
A: Typically, you must never have owned a residential property anywhere in the world; all joint buyers must qualify.

Q: Can I get back the additional property surcharge?
A: Often possible if you sell your previous main residence within a specified period and meet HMRC conditions—file a reclaim on time.

Q: Does gifted deposit affect SDLT?
A: Gift itself doesn’t increase SDLT; the taxable amount is based on the purchase price and relevant rules.

Q: Are lease extensions subject to SDLT?
A: Lease premiums and rent NPV can trigger SDLT—your solicitor will calculate the liability.

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Action Checklist (Copy/Paste)

• Confirm buyer status (FTB vs standard vs additional property)
• Verify current bands for your nation (England/NI vs Scotland vs Wales)
• Run slice‑by‑slice calculation and apply reliefs/surcharges
• Align completion timing if thresholds are changing
• Keep conveyancer calculations and HMRC filing confirmations

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Timeline, Filing, and Practical Process

• Exchange vs Completion: SDLT liability is generally tied to completion; policy changes announced between exchange and completion may affect outcomes—coordinate dates with your solicitor.
• SDLT Return: Most residential purchases require an SDLT return filed with HMRC and payment by the statutory deadline (usually days, not months). Conveyancers typically handle filing; keep the submission and UTR references.
• Linked Transactions: Multiple related purchases can be treated as linked, affecting band calculations and potentially surcharge decisions—disclose all linked deals to your solicitor.

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Special Situations to Model

• Shared Ownership: SDLT can be paid on the full market value upfront (market value election) or on the premium and rent as they arise. The chosen approach affects timing and total cost.
• Mixed‑Use Property: A property with both residential and non‑residential elements can be taxed under non‑residential rules; this may materially change the bill—seek specialist advice.
• Company Purchases: Corporate buyers face distinct rules, including potential surcharges and Annual Tax on Enveloped Dwellings (ATED) if applicable—obtain tax/legal counsel.
• Non‑Resident Surcharge: Certain non‑resident buyers may face additional surcharges depending on residency tests—confirm current HMRC guidance.

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Mortgage and Price Negotiation Considerations

• Marginal Band Sensitivity: When bidding, small price changes can move more (or less) of the price into a higher band; optimize total cost (price + SDLT + fees).
• New‑Build vs Existing: Incentives from developers can interact with SDLT calculations; ensure incentives are disclosed properly to avoid filing issues.
• Leasehold Nuances: Ground rent and service charge are generally not SDLT‑taxable, but lease premiums and the NPV of rent can be—your conveyancer will compute the precise amounts.

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Buyer Profiles (Illustrative Examples)

Upgraders Selling Main Residence

• If you complete the purchase before the sale of your current home, you may temporarily incur an additional property surcharge but could reclaim after selling the former main residence within the allowed timeframe. Keep all completion statements and timings.

Portfolio Landlord

• Additional property rates apply; consider phased acquisitions, corporate structuring, or portfolio refinancing strategy. Scenario‑test with a tax advisor—treatment of linked deals and mixed‑use assets can change totals.

First‑Time Buyer Couple With Gifted Deposit

• Ensure both buyers meet strict FTB criteria. Gifted deposits must be documented for AML and lender requirements but do not increase SDLT; the tax is based on price and rule set.

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Coordination With Other Costs

• Legal and Searches: Budget for conveyancer fees, searches, Land Registry fees, survey, and lender costs—total buyer cost of ownership matters for affordability tests.
• Moving and Furnishing: Include removals, furniture, and initial repairs when assessing affordability—these do not change SDLT but determine cash needs.
• Insurance and Protection: Buildings insurance may be required on exchange for freehold; life or income protection is optional but common for mortgage underwriting.

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Risk Management and Documentation

• Keep HMRC notices, filing confirmations, and completion statements.
• Document residency status if non‑resident rules could apply.
• Obtain written rate/band confirmations from your conveyancer for the transaction file.