Last updated: April 2026 · Sourced from official UK government publications
📚 This is a plain-English definitions guide. All rates and thresholds are drawn from HMRC and gov.uk official sources. This is not financial advice, see the disclaimer below.
Stamp Duty Land Tax (SDLT) is a tax you pay when you buy property or land in England and Northern Ireland. It’s one of the biggest upfront costs of buying a home, and the rates changed in April 2025. Here’s exactly how it works and how much you’ll pay.
Stamp Duty Land Tax (SDLT) is a tax paid by the buyer when purchasing property or land in England and Northern Ireland. It applies in bands, like income tax, so you pay different rates on different portions of the price, not one flat rate on the whole amount. Your solicitor handles the calculation and payment within 14 days of completion.
It’s paid by the buyer, not the seller. Your solicitor usually handles the payment as part of the conveyancing process. You have 14 days from completion to file and pay.
From April 2025, standard residential buyers in England pay 0% on the first £125,000, 2% from £125,001–£250,000, 5% from £250,001–£925,000, 10% from £925,001–£1.5m, and 12% above £1.5m. Each rate applies only to the portion within that band, not the full purchase price.
For standard residential purchases (moving home, not a first-time buyer, not a second property):
| Property value | SDLT rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Example: buying a £300,000 home. You pay 0% on the first £125,000 (£0), 2% on the next £125,000 (£2,500), and 5% on the remaining £50,000 (£2,500). Total: £5,000.
First-time buyers in England pay 0% SDLT on the first £300,000 of the purchase price, and 5% on the portion between £300,001 and £500,000. Properties above £500,000 do not qualify for the relief and standard rates apply in full. Every buyer on the purchase must be a first-time buyer for the relief to apply.
First-time buyers get a discount, but the thresholds reverted in April 2025 after a temporary holiday period:
| Property value | First-time buyer rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| Over £500,000 | Standard rates apply (no relief) |
To qualify, you must never have owned property anywhere in the world before, and every buyer on the purchase must be a first-time buyer.
Example: a first-time buyer purchasing a £400,000 flat pays 0% on the first £300,000 and 5% on the next £100,000, a total of £5,000, saving £5,000 compared to standard rates.
Yes. Buying a second home, buy-to-let property, or any additional residential property in England attracts a 3 percentage point surcharge on top of standard SDLT rates at every band. This applies even on low-value properties, and regardless of where in the world the buyer’s existing property is located.
If you’re buying a second home, a buy-to-let property, or any additional residential property, you pay an extra 3 percentage points on top of the standard rates at every band.
This applies even if the additional property is low-value. There is a limited exemption if you’re replacing your main residence, but only if you sell your previous main home on the same day or have already sold it.
No. Stamp Duty Land Tax applies only in England and Northern Ireland. Scotland has its own Land and Buildings Transaction Tax (LBTT), and Wales has Land Transaction Tax (LTT). The rates, thresholds, and reliefs differ in each nation; the rules that apply depend on where the property is located.
Stamp Duty is an England and Northern Ireland tax. Scotland and Wales have their own equivalents:
If you’re buying in Scotland or Wales, check the relevant Revenue Scotland or Welsh Revenue Authority calculators.
HMRC provides statutory reliefs that can reduce or eliminate SDLT in defined circumstances. The main ones are first-time buyer relief (for properties at £500,000 or less), mixed-use property relief (where a property has genuine residential and commercial use), and chattels deductions (for genuinely moveable fixtures excluded from the land price).
HMRC provides several statutory reliefs that reduce or eliminate SDLT in defined circumstances:
Full SDLT guidance, including all reliefs, is published at gov.uk/stamp-duty-land-tax.
First-time buyers in England benefit from Stamp Duty Land Tax relief. From April 2025, first-time buyers pay no SDLT on the first £300,000 of a property's price, and 5% on the portion between £300,001 and £500,000. Properties priced above £500,000 do not qualify for first-time buyer relief and standard rates apply in full. Every buyer on the purchase must be a first-time buyer for the relief to apply.
From April 2025, SDLT rates for standard residential purchases in England are: 0% on the first £125,000; 2% from £125,001 to £250,000; 5% from £250,001 to £925,000; 10% from £925,001 to £1.5 million; and 12% above £1.5 million. SDLT is calculated on the amount within each band separately, not on the full purchase price.
Yes. Purchasing an additional residential property in England attracts a 3% surcharge on top of standard SDLT rates at every band. This applies to buy-to-let properties, holiday homes, and any purchase where the buyer already owns another residential property anywhere in the world at the time of completion.
SDLT must be paid and a return filed with HMRC within 14 days of the completion date. In practice, your solicitor or conveyancer typically handles the calculation, submission, and payment on your behalf as part of the conveyancing process, with the amount factored into your completion statement.
Stamp Duty Land Tax applies only in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT), and Wales uses Land Transaction Tax (LTT). The rates, thresholds, and reliefs differ in each nation. The rules that apply to any given purchase depend entirely on where the property is located, not where the buyer lives.
SDLT rate changes, stamp duty holidays, and housing market announcements, FinanceSimply covers every Budget change that affects buyers, in plain English.
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