From 1 April 2025 stamp duty rules are changing.

This means that only the first £125,000 of any home property purchase will be exempt from stamp duty as long as the property is your primary residence.

To determine how much stamp duty you will pay on a property, use HMRC’s online stamp duty calculator.

To understand more about how stamp duty is calculated for different buying scenarios, here are some examples:

Is stamp duty different for London properties?

The simple answer is no. Currently, only buyers purchasing a property for, or below the value of £125,000 are exempt from stamp duty. Any property purchased for a higher amount will be eligible for stamp duty land tax (SDLT), regardless of whether it is in London or not.

Exactly how much stamp duty is due, is calculated from a tiered pricing structure which is based on the total property price. 

Property value / SDLT

Up to £125,000 - Zero

The next £125,001 to £250,000 - 2%

The next £675,000 (the value between £250,001 to £925,000) - 5%

The next £575,000 (the value between £925,001 to £1.5 million) - 10%

The remaining amount (the value above £1.5 million) - 12%

First time buyers: what’s changed?

If you’re buying your first home with a purchase price of up to £500,000

From 1 April 2025 - Zero stamp duty due on properties up to the value of £300,000

From 1 April 2025 - 5% stamp duty is due on properties ranging from £300,001 to £500,000

I’m moving house, what stamp duty rules apply?

Stamp duty tiers for those replacing a primary residence from 1 April 2025 are as follows:

Property value / SDLT

Up to £125,000 - Zero

The next £125,001 to £250,000 - 2%

The next £675,000 (the value between £250,001 to £925,000) - 5%

The next £575,000 (the value between £925,001 to £1.5 million) - 10%

Any remaining amount (the value above £1.5 million) - 12%

I’m looking to invest in a London property, but what stamp duty charges will I incur?

The additional homes 5% levy was introduced in October 2024 and means that second homeowners or buy-to-let landlords don’t benefit from any exemption on the first £125,000. Second homeowners and buy-to-let landlord stamp duty rates are as follows:

PROPERTY VALUE / SDLT

Up to £125,000 - 5%

The next £125,000 (the value between 125,000 to £250,000) – 7%

The next £675,000 (the value between £250,001 to £925,000) - 10%

The next £575,000 (the value between £925,001 to £1.5 million) - 15%

Above £1.5 million - 17%

If you are confused by stamp duty then Skyline Mortgage Consultants are here to help make purchasing a property in London, simple.