Scenario Calculator
Stamp Duty on £425,000
First Time Buyer
FTB Stamp Duty
£6,250
FTB Saving
£5,000
First time buyer stamp duty on a £425,000 property is £6,250 under April 2025 SDLT rates. That is £5,000 less than a standard buyer would pay on the same home. Use the slider below to adjust the purchase price and instantly compare stamp duty across all three buyer types — first time buyer, standard and additional property.
Property Price
First Time Buyer SDLT
£6,250
Effective Rate
1.5%
FTB Saving
£5,000
First Time Buyer
£6,250
Effective rate: 1.5%
Standard Buyer
£11,250
Effective rate: 2.6%
Additional Property
£32,500
Effective rate: 7.6%
How stamp duty works on a £425,000 property
Stamp Duty Land Tax (SDLT) is calculated on a slab system, meaning each portion of the purchase price falling within a particular band is taxed at that band's rate. On a £425,000 property, three separate bands come into play for most buyer types.
As a first time buyer, the first £300,000 is completely free of stamp duty. The remaining £125,000 (from £300,001 to £425,000) is taxed at 5%, producing a total SDLT bill of £6,250. This works out to an effective tax rate of just 1.5% of the purchase price.
A standard buyer purchasing the same property pays £11,250. The first £125,000 is tax-free, £125,001 to £250,000 is taxed at 2% (£2,500), and £250,001 to £425,000 is taxed at 5% (£8,750). That is £5,000 more than a first time buyer would pay.
Additional property buyers face a 5% surcharge on top of each standard band, pushing the total to £32,500. Use the slider above to adjust the property price and see how the figures change in real time.
First time buyer stamp duty relief at £425,000
From 1 April 2025, first time buyers in England and Northern Ireland pay no stamp duty on the first £300,000 of a property priced up to £500,000. At £425,000, you sit comfortably within this price cap and qualify for the full FTB relief.
To claim the relief, neither you nor anyone you are buying with can have previously owned a residential property anywhere in the world. This includes inherited properties and buy-to-let investments. If one person in a joint purchase has owned before, the entire transaction falls back to standard rates.
The £5,000 saving over standard rates can make a meaningful difference when budgeting for your first home. Many buyers choose to put that saving towards solicitor fees, removal costs or furnishing the property. Your solicitor will apply the FTB relief automatically when submitting the SDLT return to HMRC.
If you are buying an additional property — such as a second home or buy-to-let — the 5% surcharge applies from the first pound, adding £21,250 on top of the standard bill. This brings the total for additional property buyers to £32,500 on a £425,000 purchase.
Frequently asked questions
How much stamp duty do first time buyers pay on a £425,000 property?
First time buyers pay £6,250 in stamp duty on a £425,000 property. The first £300,000 is tax-free under the FTB nil-rate band, and the remaining £125,000 is taxed at 5%, giving a total SDLT bill of £6,250 and an effective rate of 1.5%.
How much stamp duty does a standard buyer pay on £425,000?
A standard buyer pays £11,250 in stamp duty on a £425,000 property. The first £125,000 is tax-free, £125,000 to £250,000 is taxed at 2% (£2,500), and £250,000 to £425,000 is taxed at 5% (£8,750). The effective rate is 2.6%.
How much do first time buyers save on stamp duty at £425,000?
First time buyers save £5,000 compared to standard buyers on a £425,000 property. The FTB bill is £6,250 versus £11,250 at standard rates. This saving comes from the higher nil-rate threshold of £300,000 available to first time buyers.
Do I qualify for first time buyer stamp duty relief on a £425,000 home?
Yes, provided you have never owned a property before and the purchase price is £500,000 or less. At £425,000 you are well within the FTB price cap. Both buyers in a joint purchase must be first time buyers to qualify for the relief.
What is the additional property stamp duty on £425,000?
Additional property buyers pay £32,500 on a £425,000 purchase. A 5% surcharge is added to each standard band: 5% on the first £125,000 (£6,250), 7% on £125,000 to £250,000 (£8,750), and 10% on £250,000 to £425,000 (£17,500). The effective rate is 7.6%.
When do I need to pay stamp duty on my £425,000 purchase?
Stamp duty must be paid within 14 days of completion. Your solicitor or conveyancer will normally submit the SDLT return and arrange payment to HMRC on your behalf as part of the conveyancing process. The £6,250 FTB bill (or £11,250 standard) is due as a lump sum.