What Is Stamp Duty in March 2025, How to Calculate & Additional Exemption

If you are looking to purchase a property in the UK, there is an additional tax called stamp duty. Its full name is Stamp Duty Land Tax (SDLT). SDLT tax depends on conditions like property buyer, property value, and property type, such as residential or non-residential. Buyers need to pay the stamp duty calculated based on the purchase, with higher rates applied to the higher purchase.

the standard stamp duty bands up to 31st March 2025 are:

Purchase Price Bands (£)	Rate (%)
Up to £250,000	0%
Between £250,001 and £925,000	5%
Between £925,001 and £1.5 million	10%
Over £1.5 million	12%

In 2025 Stamp Duty will be

The proposed new main rates of stamp duty will be:

Purchase Price Bands (£)	Rate (%)
Up to £125,000	0%
Between £125,001 and £250,000	2%
Between £250,001 and £925,000	5%
Between £925,001 and £1.5 million	10%
Over £1.5 million	12%

Calculate the SDLT (Stamp Duty):

We need to understand the rules and requirements for calculating the Stamp duty:

Find the Buyer Category:

There are different rate and regulation depend on property type and value.

1. Stander purchase:
2. First time buyer:
3. Additional Property:
4. Non Residential Property:

Price	Stander Property	Addition Property
Up to £250,000	0%	3%
£250,001 – £925,000	5%	8%
£925,001 – £1.5 million	10%	13%
Over £1.5 million	12%	15%

Example SDLT:

You are buying a property that cost you £600,000:

For Stander:

1. £250,000 is at 0% = 0
2. Remaining (£600,000 – £250,000) £350,000 is at 5% = £17,500
3. Total SDLT is = £17,500

For Additional Property

1. £250,000 is at 3% = £7,500
2. Remaining (£600,000 – £250,000) £350,000 is at 8% = £28,000
3. Total SDLT is = £35,500

Stemp Duty Relief or Exemption Policy:

If you are a first-time buyer, you may be eligible for relief from Stamp Duty, which applies to properties up to a certain amount. Until 31 March 2025, first-time buyers can benefit from a larger discount. After this date, the discount may be reduced, as a new plan is set to take effect from 1 April 2025.

Addition Exemption in Stamp Duty:

For additional exemptions from Stamp Duty, it’s advisable to seek help from a real estate agent or specialist. Eligibility for exemptions may include:

• Inherited Property: No Stamp Duty is payable on inherited property, as it is covered by exemption.
• First-Time Buyer: If the property price is below the threshold, first-time buyers may be eligible for relief.
• Divorce Settlement: Property transfers ordered by a court as part of a divorce settlement may be exempt.
• Gifted Property: Gifted properties can be more complex, but may also be exempt from Stamp Duty.
• Company Transfers: If you transfer property to a company you own, there may be exemptions available.

Note: Generally, if no money changes hands in the transfer of property, there may be a possibility of Stamp Duty exemption. However, this often involves additional documentation and specific criteria. Consulting an expert is recommended for further guidance.