Complete Stamp Duty Calculator & Guide UK 2025 | Homemove

What is Stamp Duty Land Tax?

Stamp duty land tax (SDLT) is government tax charged on property and land purchases in England and Northern Ireland above specified thresholds. Scotland uses Land and Buildings Transaction Tax (LBTT) with different thresholds and rates. Wales uses Land Transaction Tax (LTT) with separate rate structures.

SDLT applies to freehold and leasehold purchases, land purchases, property transfers (with consideration), and shared ownership schemes. Tax applies when: purchasing property outright with cash or mortgages, transferring property ownership for monetary consideration, taking on mortgages or debts exceeding £40,000 as consideration, or acquiring property through lease premium payments.

SDLT does not apply to: property gifts without consideration (monetary exchange), divorce settlements and transfers between spouses, inherited property through wills or intestacy, or property transactions under £40,000 (residential).

Progressive banded system: SDLT calculates using tiered bands similar to income tax – different rates apply to different price portions rather than flat percentages on entire values. £300,000 purchase does not pay 5% (£15,000) but rather £0 on first £250,000 and 5% on remaining £50,000 (£2,500 total). This progressive structure significantly reduces tax for properties near thresholds compared to flat rate systems.

Buyer responsibility: Buyers pay stamp duty from purchase funds requiring budgeting beyond deposits and purchase prices. Solicitors calculate and remit SDLT from completion funds within 14 days, but buyers must provide sufficient cleared funds covering all costs including stamp duty to enable completion. Failure to budget adequately for stamp duty causes completion delays or failures when insufficient funds prevent solicitors transferring full amounts to sellers and HMRC simultaneously during completion processes.

Why Stamp Duty Exists

SDLT generates substantial government revenue – approximately £15-20 billion annually from residential and commercial property transactions – funding public services, infrastructure, and government operations. Originally introduced as documentary stamp duty on property transaction paperwork, modern SDLT evolved into major revenue source and policy tool for influencing property markets. Higher rates and surcharges on additional properties aim to moderate buy-to-let and second home purchases potentially reducing competition against owner-occupiers, though effectiveness remains debated. First-time buyer relief intends to improve affordability for new entrants despite evidence suggesting seller price increases often absorb relief benefits rather than buyers retaining savings. Progressive banded structure attempts wealth redistribution through higher rates on expensive properties, though threshold freezes (not increasing with inflation or house prices) create fiscal drag where average earners pay increasing proportions of values as threshold real-terms values decline over years despite nominal amounts remaining static.

When is Stamp Duty Due?

SDLT becomes due on completion day (not exchange), with payment and returns required within 14 days. Your solicitor/conveyancer handles administration: they receive completion funds (your deposit plus mortgage advance), calculate SDLT due based on purchase price and buyer status, submit SDLT return to HMRC electronically with transaction details, pay SDLT to HMRC from your funds, and receive SDLT certificate needed for Land Registry registration.

Completion day process: Contracts exchange making purchase legally binding, solicitors transfer funds between buyers and sellers, keys released after fund confirmation, and ownership transfers legally though formal registration occurs subsequently requiring SDLT payment first.

14-day deadline critical: Late payment triggers immediate £100 penalty, £200 additional penalty if outstanding after 3 months, escalating fines and interest for persistent delays, and most importantly prevents Land Registry registration blocking legal ownership transfer. Until SDLT paid and return filed: buyers cannot legally own properties (ownership remains with sellers on title), buyers cannot sell properties (no ownership to transfer), mortgages remain unenforceable creating lender risk, and serious legal complications arise. Timely SDLT payment proves essential for completing ownership transfer and avoiding these severe consequences. Solicitors prioritize SDLT payment within 14-day window using client funds from completion preventing most buyers experiencing late payment issues, though ensuring sufficient cleared funds provided to solicitors for all transaction costs including SDLT remains buyer responsibility preventing funding shortfalls delaying completions or preventing SDLT payment.

Current Stamp Duty Rates & Thresholds 2024/25

Three distinct SDLT rate structures apply depending on buyer status and property type. Standard residential rates (regular buyers purchasing main residences): £0 on first £250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5million, 12% above £1.5million. First-time buyer relief rates: £0 on properties up to £425,000 (reducing to £300,000 from June 2025 when temporary extension expires), 5% on £425,001-£625,000 for partial relief, standard rates apply fully on properties above £625,000 (no relief). Additional property surcharge rates (buy-to-let, second homes): 3% on first £250,000, 8% on £250,001-£925,000, 13% on £925,001-£1.5million, 15% above £1.5million. Rate comparison at common price points: £200,000: Standard £0, First-time £0, Additional property £6,000. £300,000: Standard £2,500, First-time £0, Additional property £11,500. £500,000: Standard £15,000, First-time £3,750 (if qualifying below £625,000 threshold), Additional property £30,000. £750,000: Standard £27,500, No first-time relief, Additional property £50,000. £1million: Standard £40,000, No first-time relief, Additional property £70,000. These dramatic variations demonstrate importance of understanding applicable rates – first-time buyers save £2,500-£11,250 typically on £300,000-£625,000 purchases through relief, while additional property buyers pay £9,000-£30,000 more than standard buyers on £300,000-£1million purchases through surcharges creating substantial cost differences for identical properties depending solely on buyer circumstances and statuses.

Standard Residential SDLT Rates

Standard rates apply to most owner-occupier purchases by buyers who previously owned property (not first-time buyers) and who are replacing main residences or purchasing first homes after previous ownership. Progressive calculation means paying different rates on different price portions: Band 1: £0-£250,000 at 0% rate. Band 2: £250,001-£925,000 at 5% rate. Band 3: £925,001-£1,500,000 at 10% rate. Band 4: Above £1,500,000 at 12% rate. Each portion taxed at its band rate, not flat rate on entire value creating significant savings compared to flat rate systems particularly for properties near band thresholds. Detailed calculation examples: £250,000 purchase: £0 (entirely within zero-rate band). £300,000 purchase: £0 on first £250,000, plus 5% on £50,000 (£2,500) = £2,500 total (0.83% effective rate). £500,000 purchase: £0 on first £250,000, plus 5% on £250,000 (£12,500), plus 10% on £0 = £12,500 total (2.5% effective rate). £925,000 purchase: £0 on first £250,000, plus 5% on £675,000 (£33,750), plus 10% on £0 = £33,750 total (3.65% effective rate). £1,500,000 purchase: £0 on first £250,000, plus 5% on £675,000 (£33,750), plus 10% on £575,000 (£57,500), plus 12% on £0 = £91,250 total (6.08% effective rate). £2,000,000 purchase: £0 + £33,750 + £57,500 + 12% on £500,000 (£60,000) = £151,250 total (7.56% effective rate). Effective rates increase with purchase prices but remain below headline rates due to progressive banding – £2million purchase pays 7.56% effective rate despite 12% headline top rate due to lower rates on portions within lower bands creating graduated tax structure favoring lower-value purchases proportionally.

First-Time Buyer Relief

First-time buyers receive substantial SDLT relief saving £2,500-£11,250 on typical purchases. Relief structure (current 2024/25): £0 SDLT on properties up to £425,000 (versus £8,750 standard rates = £8,750 saving), 5% SDLT on £425,001-£625,000 portion only (versus standard rates = partial saving), no relief on properties above £625,000 (standard rates apply = no saving). Qualification requirements: Never owned residential property anywhere in world previously (UK or overseas ownership disqualifies), purchasing property as main residence (not buy-to-let or investment), and being individual buyer (not company or trust). Joint purchases require both/all buyers qualifying – if any co-buyer previously owned property, relief unavailable entirely. Married couples/civil partners purchasing together both need first-time buyer status, though unmarried couples can strategically use qualifying partner as sole buyer if non-qualifying partner's income not needed for mortgage affordability. Relief examples: £250,000 first-time purchase: £0 (same as standard rates as below general £250,000 threshold = £0 saving). £350,000 first-time purchase: £0 (versus £5,000 standard = £5,000 saving). £425,000 first-time purchase: £0 (versus £8,750 standard = £8,750 saving – maximum zero-rate saving). £500,000 first-time purchase: 5% on £75,000 above £425,000 = £3,750 (versus £12,500 standard = £8,750 saving through partial relief). £625,000 first-time purchase: 5% on £200,000 between £425,000-£625,000 = £10,000 (versus £18,750 standard = £8,750 saving). £650,000 first-time purchase: £20,000 (standard rates, no relief as exceeds £625,000 threshold = £0 saving). Relief saves maximum £8,750 achieved between £425,000-£625,000 purchases, with savings gradually reducing as prices approach £625,000 upper threshold where relief phases out completely above this threshold regardless of first-time status.

First-Time Buyer Definition & Disqualifications

Qualifying as first-time buyer requires never owning property interest anywhere globally.

Disqualifications include: Previous freehold or leasehold property ownership (however brief, however long ago, anywhere in world), inherited property share (even partial interest through wills or intestacy), property received as gift (even if subsequently sold or transferred), ownership through trust beneficiaries in some circumstances, and overseas property ownership (any residential property owned anywhere internationally).

Common situations: Inheriting parent's property share disqualifies – even 1% inherited interest eliminates first-time status despite never purchasing. Previously owning property then selling disqualifies – you're not first-time buyer on second purchase. Owning property outside UK disqualifies – SDLT relief considers global ownership not just UK. Business or commercial property previously owned doesn't disqualify – non-residential property ownership doesn't affect residential first-time buyer status.

Joint purchases complexity: All buyers must qualify for relief to apply. Married couple where one owned previously: No relief available. Unmarried couple where one owned previously: If non-owner's income unnecessary for mortgage, could purchase in qualifying partner's sole name gaining relief though creating sole ownership requiring trust documentation protecting non-owner's contributions and interests.

Claims process: Solicitors confirm first-time buyer status through declarations and process relief automatically via SDLT returns. False claims constitute fraud with severe penalties: Repaying avoided tax, penalties up to 100% of tax (paying twice), interest charges, potential criminal prosecution. Never claim first-time buyer relief if ineligible hoping HMRC won't notice – robust checking systems identify most fraudulent claims resulting in investigations, demands for repayment plus penalties, and permanent records affecting future tax treatment beyond immediate financial consequences.

Additional Property Surcharge

3% surcharge applies to all SDLT bands for additional residential property purchases significantly increasing tax burden. When surcharge applies: Purchasing buy-to-let investment properties, buying second homes or holiday homes, retaining previous main residence when purchasing another, already owning residential property (UK or global) when buying additional UK property, or replacing main residence but not selling previous main residence within 36 months. Surcharged rates: 3% on first £250,000 (versus 0% standard), 8% on £250,001-£925,000 (versus 5% standard), 13% on £925,001-£1.5million (versus 10% standard), 15% above £1.5million (versus 12% standard). Effectively adds approximately 3% to purchase prices though progressive banding creates slight variations from flat 3% on entire values. Surcharge calculation examples: £200,000 additional property: 3% on £200,000 = £6,000 (versus £0 standard, £6,000 additional). £300,000 additional property: 3% on £250,000 (£7,500) + 8% on £50,000 (£4,000) = £11,500 total (versus £2,500 standard, £9,000 additional). £500,000 additional property: £7,500 + 8% on £250,000 (£20,000) + 13% on £0 = £27,500 total (versus £12,500 standard, £15,000 additional). £750,000 additional property: £7,500 + £20,000 + 13% on £0 = £27,500 total (versus £27,500 standard... wait this doesn't add – let me recalculate: £7,500 on first £250k + 8% on next £500k (£40,000) = £47,500 (versus £27,500 standard, £20,000 additional surcharge roughly 2.67% of price). £1million additional property: £7,500 + £40,000 + 13% on £75,000 (£9,750) = £57,250... wait let me be more careful: First £250k at 3% = £7,500. Next £675k (£250,001 to £925,000) at 8% = £54,000. Next £75k (£925,001 to £1million) at 13% = £9,750. Total = £71,250 (versus £41,250 standard, £30,000 additional).

Main Residence Replacement Exception

Refund opportunity: If selling previous main residence within 36 months of purchasing replacement, surcharge refunded through repayment claim. Accommodates temporary dual property ownership during typical moving sequences where purchasing new home before completing sale of existing home creates brief period owning two properties.

Process: Pay surcharge initially at completion (no exemption at purchase time), complete sale of previous main residence within 36 months, submit SDLT amendment return claiming repayment with evidence (sales contract, completion statement), receive refund typically 4-8 weeks after approval.

Evidence requirements: Proof previous property was main residence (utility bills, council tax records), proof of sale completion within 36-month window, confirmation replacement property is new main residence.

36-month window provides substantial flexibility – most residential moves complete within 12-18 months making 36-month deadline achievable for typical circumstances. However, if previous property doesn't sell within 36 months: Surcharge becomes permanent, no refund available, £9,000-£30,000+ additional cost remains for typical £300,000-£1million purchases creating significant financial impact if unable to sell prior properties within timescales potentially due to slow markets, chain delays, or property condition issues preventing sales.

SDLT Calculation Examples

Detailed worked examples across scenarios demonstrating calculation mechanics and cost variations. Example 1: £280,000 purchase. Standard buyer: Band 1: £0 on £250,000 (0%). Band 2: £1,500 on £30,000 (5%). Total: £1,500 SDLT (0.54% effective rate). First-time buyer: £0 SDLT (under £425,000 threshold). Additional property buyer: Band 1: £7,500 on £250,000 (3%). Band 2: £2,400 on £30,000 (8%). Total: £9,900 SDLT (3.54% effective rate). Example 2: £450,000 purchase. Standard buyer: £0 on £250,000 + £10,000 on £200,000 (5%) = £10,000 SDLT (2.22% effective rate). First-time buyer: 5% on £25,000 above £425,000 = £1,250 SDLT (0.28% effective rate, £8,750 saving). Additional property buyer: £7,500 on £250,000 (3%) + £16,000 on £200,000 (8%) = £23,500 SDLT (5.22% effective rate, £13,500 more than standard). Example 3: £750,000 purchase. Standard buyer: £0 on £250,000 + £25,000 on £500,000 (5%) + £0 on £0 = £25,000 SDLT (3.33% effective rate). First-time buyer: No relief (exceeds £625,000 threshold), £25,000 SDLT same as standard. Additional property buyer: £7,500 + £40,000 on £500,000 (8%) + £0 = £47,500 SDLT (6.33% effective rate, £22,500 more than standard). Example 4: £1.2million purchase. Standard buyer: £0 + £33,750 on £675,000 (5%) + £27,500 on £275,000 (10%) = £61,250 SDLT (5.10% effective rate). Additional property buyer: £7,500 + £54,000 on £675,000 (8%) + £35,750 on £275,000 (13%) = £97,250 SDLT (8.10% effective rate, £36,000 more than standard). These examples demonstrate how surcharges add approximately 3% to purchase prices while first-time buyer relief saves maximum £8,750 achieved between £425,000-£625,000 price ranges with savings reducing outside this band until eliminated entirely above £625,000.

SDLT Exemptions & Reliefs

Beyond first-time buyer relief and main residence replacement, multiple exemptions reduce or eliminate SDLT. Property gifts: If no consideration (money) exchanges, £0 SDLT applies. Gifting property to family members without payment avoids stamp duty though recipients assume ownership with potential capital gains tax implications when eventually selling. However, taking over mortgages counts as consideration – if gifted property has £100,000 mortgage assumed by recipient, SDLT applies to £100,000 as this represents consideration. Spousal transfers: Transfers between married couples or civil partners attract £0 SDLT including divorce settlements and separation agreements pursuant to court orders or formal agreements. Unmarried couples don't benefit – transfers between unmarried partners constitute chargeable transactions subject to normal SDLT even when no money exchanges hands creating unexpected tax bills for relationship separations involving property transfers between non-married partners. Multiple dwellings relief: Purchasing 2+ dwellings in single transaction calculates SDLT on average property price rather than total consideration, substantially reducing liability on bulk purchases. Example: Buying 4 flats for £800,000 total (£200,000 each average) calculates SDLT as 4 properties at £200,000 (£0 each under £250,000 threshold) = £0 total SDLT, versus single £800,000 transaction = £27,500 SDLT, saving £27,500. Requires minimum two dwellings purchased in single transaction with single seller. Relief claims require detailed submissions and calculations. Properties under £40,000: Completely exempt regardless of buyer type, though residential properties under this threshold are rare (derelict buildings, unbuildable plots, tiny sheds). Certain business transactions: Corporate reorganizations, partnerships, group relief for qualifying corporate structures under anti-avoidance provisions. Registered charities: Purchasing for charitable purposes receive exemptions. Right to Buy: SDLT calculated on discounted price paid not full market value reducing liability for tenants exercising Right to Buy purchasing council properties at statutory discounts.

Scotland & Wales: Different Systems

Scotland uses Land and Buildings Transaction Tax (LBTT) with different thresholds and rates from English SDLT. LBTT residential rates (2024/25): £0 on first £145,000, 2% on £145,001-£250,000, 5% on £250,001-£325,000, 10% on £325,001-£750,000, 12% above £750,000. Additional Dwelling Supplement (ADS): 6% surcharge on all additional residential properties (higher than English 3% surcharge). First-time buyer relief: £0 on properties up to £175,000 (lower than English £425,000).

Example Scottish calculations: £200,000 standard purchase: £0 on £145,000 + £1,100 on £55,000 (2%) = £1,100 LBTT. £300,000 standard purchase: £0 + £2,100 on £105,000 (2%) + £2,500 on £50,000 (5%) = £4,600 LBTT (versus £2,500 English SDLT – Scotland typically higher). £400,000 additional property: £24,000 ADS surcharge (6%) plus £9,100 standard LBTT = £33,100 total (versus £19,500 English SDLT additional property – Scotland significantly higher surcharge).

Wales uses Land Transaction Tax (LTT) with distinct structure. LTT residential rates (2024/25): £0 on first £225,000 (higher than English £250,000 threshold but lower than previous), 6% on £225,001-£400,000 (higher than English 5%), 7.5% on £400,001-£750,000, 10% on £750,001-£1.5million, 12% above £1.5million. Higher rates for additional properties (similar to English surcharge).

Example Welsh calculations: £300,000 standard purchase: £0 on £225,000 + £4,500 on £75,000 (6%) = £4,500 LTT (versus £2,500 English SDLT – Wales higher).

Key takeaway: Scotland and Wales operate entirely separate land transaction tax regimes with different thresholds, rates, reliefs, and surcharges. Property location determines applicable tax regime not buyer residence – English resident purchasing Scottish property pays Scottish LBTT not English SDLT. Always use correct calculators and rates for property location preventing costly errors in budgeting or payments. Solicitors specializing in relevant jurisdictions handle calculations and payments ensuring compliance with applicable regimes preventing cross-border confusion when buying properties in different UK nations from residence locations.

SDLT Payment Process

Your solicitor/conveyancer manages entire SDLT process though understanding mechanics proves useful for monitoring progress and ensuring timely completion. Pre-completion: Solicitors calculate SDLT based on purchase price (from contracts), buyer status (first-time, additional property), and property type (residential, commercial). They request cleared funds from buyers covering purchase prices, deposits, legal fees, searches, and stamp duty ensuring sufficient balances before completion dates. Completion day: Solicitors receive mortgage advances (if applicable), add buyer deposit funds, transfer purchase prices to sellers' solicitors, and retain SDLT amounts for payment to HMRC. Keys released after sellers' solicitors confirm receipt of full purchase funds. Post-completion (within 14 days): Solicitors complete SDLT return form online via HMRC portal detailing transaction (property address, price, buyer details, SDLT calculation, reliefs claimed), submit return electronically to HMRC, pay SDLT to HMRC from client funds using electronic transfer, and receive SDLT5 certificate confirming payment. Land Registry registration: Solicitors submit registration application to Land Registry including SDLT5 certificate (mandatory), transfer deeds, mortgage deeds (if applicable), and registration fees. Land Registry processes applications (typically 2-6 weeks), updates title registers showing buyers as registered owners, and issues official title register copies and title plans to solicitors who forward to buyers completing ownership transfer. Buyer involvement: Provide sufficient cleared funds to solicitors before completion including stamp duty amounts, confirm buyer status details (first-time buyer, additional property) accurately enabling correct SDLT calculations, and monitor solicitors ensuring SDLT returns filed within 14-day deadlines. Most buyers experience seamless processes with solicitors handling administration transparently, though understanding timelines and requirements prevents misunderstandings and enables buyers to ensure solicitors progress matters appropriately throughout post-completion periods until full legal ownership registration completes.

Legitimate Strategies for Reducing SDLT

Several lawful approaches minimize stamp duty though some create other complications requiring careful evaluation. Maximize first-time buyer relief: If eligible, ensures £0 SDLT on properties up to £425,000 (current threshold, reducing to £300,000 from June 2025) saving £8,750 maximum. Joint buyers where one partner previously owned property might consider sole purchase by qualifying partner if their income sufficient for mortgage affordability, though creates sole ownership requiring trust documentation protecting non-owner partner's financial interests and contributions. Sell before buying: Avoid 3% additional property surcharge by completing previous main residence sale before purchasing replacement. Requires temporary rental accommodation or buying after selling creating chain vulnerabilities, though saves £9,000-£30,000+ on typical £300,000-£1million purchases. If timing impractical, complete sales within 36 months claiming surcharge refunds retrospectively. Negotiate fixtures and fittings separately: SDLT applies only to property and fixtures (items permanently attached) not moveable contents. Agreeing separate consideration for carpets, curtains, furniture, appliances, white goods, and other moveables reduces purchase prices for SDLT purposes. Example: £255,000 purchase allocated as £245,000 property plus £10,000 contents = £0 SDLT (under £250,000 threshold) versus £250 SDLT on full £255,000. However, allocations must reflect genuine market values – artificially inflating contents values constitutes fraud. Typical legitimate allocations: £5,000-£15,000 for comprehensively furnished properties with extensive quality items. HMRC challenges excessive allocations requiring evidence supporting values claimed. Multiple dwellings relief: Purchasing 2+ properties simultaneously (buy-to-let portfolios, houses with annexes, conversions) uses average price calculations reducing SDLT substantially. Requires genuine multiple dwellings purchased in single transaction – artificially structuring single property as multiple to gain relief fails under HMRC scrutiny. Strategic timing: Purchase before threshold reductions (current first-time buyer £425,000 threshold reduces to £300,000 from June 2025) – buyers purchasing £350,000 properties before reduction save £5,000 by completing while higher threshold available. However, rushing purchases for tax savings may compromise property choices creating longer-term disadvantages outweighing short-term SDLT savings.

Avoiding Illegal SDLT Avoidance Schemes

Aggressive avoidance schemes marketed as reducing SDLT typically fail under HMRC investigation creating severe consequences. Common illegal schemes: Sub-sale arrangements artificially lowering apparent purchase prices, artificial company structures attempting to exploit loopholes, false gift claims while receiving consideration, staging transactions through multiple entities, or separating land and building purchases artificially. Consequences of scheme failure: Full SDLT due as originally calculated, penalties up to 100% of avoided tax (paying twice), interest charges accumulating from original due date, legal costs defending against HMRC investigations, potential criminal prosecution for deliberate fraud, and permanent tax records affecting future treatment. HMRC detection: Sophisticated analysis systems identify unusual transactions, discrepancies between stated and market values, common scheme patterns, and involvement of known scheme promoters triggering investigations routinely detecting most avoidance attempts resulting in demands for payment plus penalties. Legitimate planning versus aggressive avoidance: Legitimate tax planning uses reliefs and thresholds within legislative intent – first-time buyer relief, multiple dwellings relief for genuine multi-property purchases, fixtures/fittings allocations reflecting true values. Aggressive avoidance artificially manipulates transactions purely for tax reduction without commercial substance – excessive fixtures allocations far exceeding item values, artificial company structures without genuine business purposes, or staged transactions lacking commercial rationale beyond tax avoidance. When considering any structure or arrangement primarily motivated by SDLT reduction, obtain professional tax advisor opinions from qualified accountants or tax solicitors assessing legality and risk rather than relying on scheme promoters' assurances who disappear when HMRC investigations commence leaving buyers facing consequences alone. If arrangement seems too good to be true (paying £0 stamp duty on £1million purchase through clever structuring), it almost certainly fails under HMRC scrutiny with severe financial and legal consequences destroying any perceived savings multiple times over through penalties, interest, and legal costs defending failed schemes.

Common SDLT Mistakes to Avoid

Underestimating total costs: Many buyers calculate purchase prices and deposits forgetting stamp duty, creating funding shortfalls preventing completions. Always budget SDLT alongside other transaction costs ensuring sufficient cleared funds available before exchange.

Misunderstanding first-time buyer relief: Assuming any first purchase qualifies when inherited property, overseas ownership, or joint purchase with previous owner disqualifies entirely. Confirm eligibility definitively before relying on relief avoiding unexpected tax bills.

Missing 36-month refund deadline: Paying additional property surcharge when replacing main residence then not claiming refund within 36 months of previous property sale forfeits £9,000-£30,000+ surcharge payments permanently. Set reminders and submit claims promptly after completing sales.

Ignoring threshold changes: Current first-time buyer £425,000 threshold reduces to £300,000 from June 2025 – buyers purchasing £350,000 properties must complete before reduction to secure £5,000 saving, or face full £5,000 SDLT after reduction versus £0 under current relief. Monitor government announcements for threshold and rate changes timing purchases optimally.

Excessive fixtures allocations: Claiming £30,000 contents on £270,000 purchase attempting to reduce stamp duty from £1,000 to £0 through implausible allocation triggers HMRC investigations requiring evidence, typically resulting in full SDLT assessed plus penalties for deliberate evasion. Keep allocations reasonable (£5,000-£15,000 maximum) with documentary evidence supporting values.

Delaying solicitor instructions: Appointing solicitors late leaves insufficient time for SDLT calculations, fund requests, and payment arrangements risking completion delays or failures when inadequate funds or preparation prevents completing transactions on agreed dates potentially causing chain collapses affecting multiple parties throughout transaction chains creating legal and financial complications beyond individual purchases.