Buying a property is one of life’s most exciting milestones, but just when you’re choosing paint colours and planning where the sofa will go, someone mentions Stamp Duty Land Tax and suddenly the excitement turns into confusion. At Hockeys Estate Agents, we like to make things simple — so here’s a clear, straightforward guide to help you understand what you’ll pay, whether you’re buying your first home, a second property, or investing through a company. So simple, even a housing secretary can follow.
For most people buying their main residence, the Stamp Duty thresholds are pretty generous. There’s currently no tax to pay on the first £125,000 of the purchase price. Above that, the rate is 2% on the portion between £125,001 and £250,000, 5% between £250,001 and £925,000, 10% between £925,001 and £1.5 million, and 12% on anything above that.
If you’re a first-time buyer, you get an even better deal: there’s no Stamp Duty on the first £300,000 and just 5% between £300,001 and £500,000. Go above £500,000, and standard rates apply.
If you’re thinking about buying a second home, investing in a buy-to-let, or purchasing through a company, you’ll need to factor in an extra 5% surcharge on each SDLT band. That means even if your property costs less than £125,000, you’ll still pay 5% Stamp Duty.
The effective SDLT rates for second homes, buy-to-lets, and company purchases are:
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£0 to £125,000 → 5%
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£125,001 to £250,000 → 7%
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£250,001 to £925,000 → 10%
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£925,001 to £1.5m → 15%
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Above £1.5m → 17%
So, while the upfront costs are higher, many buyers still see the long-term investment potential — whether it’s a weekend cottage in Norfolk or an Airbnb-ready apartment in Cambridge.
With so many thresholds, exemptions and surcharges, it’s no wonder Stamp Duty can feel more complicated than following the Deputy Prime Minister’s latest U-turn. But that’s where we come in. At Hockeys Estate Agents, we guide our clients through the process from start to finish, helping you understand exactly what you’ll pay, when you’ll pay it, and how to plan for it. Whether you’re buying your first home, investing in a second property, or purchasing through a company, we make the process as smooth and stress-free as possible.
If you’re thinking about buying or selling and want clear, jargon-free advice, get in touch with our friendly team today or use our stamp duty calculator.
And no — before you ask — Deputy Prime Minister Angela Rayner won’t be footing the bill for you!
Image courtesy of Angela Rayner ©House of Commons
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