Stamp Duty Land Tax is a tax payable on all residential and commercial property purchases in England and Northern Ireland.

Currently, anyone purchasing a residential property in the UK, whether as a first-time buyer or otherwise, for a value of £250,000 or less, is not liable to pay Stamp Duty Land Tax.

For first-time buyers, thanks to the SDLT relief for first-time buyers’ policy, introduced in 2017, the threshold is set at £425,000. This means that if a first-time buyer purchases a property with a value of up to £425,000, they are not liable to pay SDLT.

First-time Buyer Threshold

In 2022, the government announced two key updates to SDLT, including:

  • The threshold by which SDLT is 0% increased from £125,000 to £250,000.
  • The threshold by which SDLT is 0% for first-time buyers increased from £300,000 to £425,000.

Following these updates, the thresholds for first-time buyers are as follows:

Property Value SDLT rate
Up to £425,000 0%
The next £500,000 (the value between £425,001 to £925,000) 5%
The next £575,000 (the value between £925,001 to £1,500,000) 10%
The remaining amount (above £1,500,000) 12%

Below, we outline the SDLT thresholds for those not purchasing property for the first time. You will note that the thresholds above £625,000, the rate for paying SDLT is the same for first-time buyers and otherwise.

The first-time buyer SDLT relief policy was designed to help people get on the property ladder, which is why there is this property value threshold.

Standard Residential Property Thresholds

For those not buying a property for the first time, the thresholds for SDLT payable are as follows:

Property Value SDLT rate
Up to £250,000 0%
The next £675,000 (the value between £250,001 to £925,000) 5%
The next £575,000 (the value between £925,001 to £1,500,000) 10%
The remaining amount (above £1,500,000) 12%

Paying SDLT

The total amount of stamp duty land tax payable should be paid to HM Revenue and Customs within 14 days of the completion of the property’s sale.

Your solicitor or conveyancer will take care of paying SDLT on your behalf.

Residential Conveyancing Solicitor Guildford and London

At Gordons Partnership, our residential conveyancing solicitors are well-versed in supporting clients throughout their property matters, from carrying out the appropriate searches to paying the appropriate stamp duty land tax.

As a first-time buyer, we understand that you will be anxious to ensure the process runs smoothly. Therefore, we will carefully support you through the process, answering your questions and sticking to straightforward, jargon-free language.

To speak to our team, if you are seeking to purchase your first property today, please call 01483 451 900 (Guildford) or 020 7421 9421 (London). Alternatively, please email sols@gordonsols.co.uk or fill in this contact form.