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If you’re considering purchasing a property, one crucial aspect of the transaction you will need to consider is Stamp Duty Land Tax (SDLT), commonly referred to as “Stamp Duty.” This tax is a significant factor in the overall cost of buying a property. In this blog, we’ll delve into what Stamp Duty is and how it is calculated, helping you navigate this essential aspect of the home buying process.

Stamp Duty Land Tax is a tax imposed by the UK government on the purchase of residential properties over a certain price threshold. The amount of SDLT payable is determined by the property’s purchase price and its classification (e.g., main residence, second home, or buy-to-let investment). The tax is payable to HM Revenue & Customs (HMRC) and must be settled within a specific timeframe after completion.

How is Stamp Duty Calculated?

As of 2023, the Stamp Duty rates were as follows:

Main Residence Property:

Up to £250,000: 0% SDLT

£250,001 to £925,000: 5% SDLT

£925,001 to £1.5 million: 10% SDLT

Over £1.5 million: 12% SDLT

Additional Property (e.g. Second Home or Buy-to-Let):

Up to £250,000: 3% SDLT

£250,001 to £925,000: 8% SDLT

£925,001 to £1.5 million: 13% SDLT

Over £1.5 million: 15% SDLT

Stamp Duty for First-Time Buyers:

As a first-time buyer, you will be able to claim SDLT Relief (pay no Stamp Duty) as follows:

Up to £425,000: 0% SDLT

£425,001 – £625,000: £5% SDLT

Over £625,000: If the purchase exceeds £625,000 first time buyers will not be able to claim SDLT relief and will be charged at the standard rate.

Additional Considerations:

Stamp Duty rates and thresholds are subject to change, so it’s vital to verify the latest information with a professional conveyancing company, such as Clarity before making any property purchase.


Stamp Duty is a significant aspect of buying a property in the UK. Understanding how it is calculated and any applicable reliefs can help you budget effectively and avoid any surprises during the homebuying process. Remember to speak to a qualified professional to ensure compliance with the latest regulations and to make informed decisions about your property purchase. By seeking guidance from a qualified solicitor experienced in property law, you can confidently navigate the complexities of Stamp Duty and ensure a seamless homebuying experience in the UK.

Looking for some legal advice?

At Clarity, our friendly, professional and experienced team are on hand to offer guidance and advice to make your property purchase as smooth and straightforward as possible. We have offices in Northampton and Milton Keynes and serve the surrounding areas.