Stamp Duty Land Tax (SDLT) is the tax you pay when you buy property in England and Northern Ireland. Scotland has LBTT, Wales has LTT — similar idea, different rates. Whatever you call it, it’s a big chunk of money that catches a lot of buyers off guard because they budget for the deposit and mortgage but forget about the tax bill on top.
Current SDLT Rates (2025/26)
After the temporary thresholds ended in March 2025, the standard rates are:
- £0–£250,000: 0%
- £250,001–£925,000: 5%
- £925,001–£1,500,000: 10%
- Above £1,500,000: 12%
SDLT is a slab tax, not a flat rate. On a £400,000 property, you pay 0% on the first £250,000 and 5% on the remaining £150,000 = £7,500. Not 5% of £400,000. This confuses a lot of people.
First-Time Buyer Relief
First-time buyers get a better deal:
- £0–£425,000: 0%
- £425,001–£625,000: 5%
If the price exceeds £625,000, you lose the relief entirely and pay standard rates from the first pound. So a first-time buyer pays nothing on a £425,000 home, but a non-first-time buyer pays £8,750 for the same property. That’s a meaningful saving.
To qualify, neither you nor anyone you’re buying with can have previously owned a residential property anywhere in the world. Inherited or been gifted a property? You may not qualify, even if you never actually purchased one.
Additional Property Surcharge
Buying a second home, buy-to-let, or holiday home? You pay a 5% surcharge on top of the standard rates from the very first pound. This applies to any purchase over £40,000 where you already own another residential property.
On a £300,000 buy-to-let: standard SDLT would be £2,500. With the surcharge: £2,500 + £15,000 = £17,500. That’s a lot of money. Landlords need to factor this into every investment calculation.
Company Purchases
Companies buying residential property over £500,000 pay a whopping 17% (12% top rate plus 5% surcharge). This was specifically designed to deter corporate bulk-buying of homes.
When and How to Pay
SDLT must be paid within 14 days of completion. In practice, your solicitor handles this as part of conveyancing — the money comes from what you send to your solicitor for completion.
Late filing means automatic penalties: £100 if up to 3 months late, £200 if 3–6 months, plus interest on any unpaid SDLT. Your solicitor would have to really drop the ball for this to happen, but it’s worth knowing.
Scotland and Wales
Buying in Scotland? You pay LBTT instead, with different rates and bands — the nil-rate band is £145,000 for standard purchases. In Wales, LTT applies with its own rates starting at 0% up to £225,000. Always check you’re looking at the right tax for your nation.
Calculate Your Stamp Duty
Our free stamp duty calculator covers England, Scotland, and Wales, including first-time buyer relief and additional property surcharges. Punch in the price and know exactly what you’ll owe before making an offer.