Stamp Duty Land Tax (SDLT) is a tax paid by the buyer when purchasing property or land in England or Northern Ireland. Scotland has Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT) — both follow broadly similar structures but with different rates and thresholds. This guide focuses on SDLT in England.
SDLT is tiered, like income tax — you pay each rate only on the portion of the purchase price that falls within each band.
Standard SDLT Rates (England, 2025-26)
The standard residential SDLT rates from 1 April 2025 are:
| Property Price | 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% |
Note: The temporary SDLT reductions that applied from September 2022 to March 2025 expired on 31 March 2025. The nil-rate threshold reverted from £250,000 to £125,000 from 1 April 2025.
First-Time Buyer Relief
First-time buyers purchasing a property for up to £625,000 benefit from enhanced relief:
| Property Price | FTB Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 – £625,000 | 5% |
| Over £625,000 | Standard rates apply (no FTB relief) |
A first-time buyer must:
- Have never owned residential property before (in the UK or abroad).
- Intend to occupy the property as their main residence.
If buying with a partner, all purchasers must be first-time buyers to qualify for relief.
Worked Examples
Standard Purchase: £350,000 Property
| Band | Amount | Rate | Tax |
|---|---|---|---|
| Up to £125,000 | £125,000 | 0% | £0 |
| £125,001 – £250,000 | £125,000 | 2% | £2,500 |
| £250,001 – £350,000 | £100,000 | 5% | £5,000 |
| Total | £7,500 |
First-Time Buyer: £350,000 Property
| Band | Amount | Rate | Tax |
|---|---|---|---|
| Up to £300,000 | £300,000 | 0% | £0 |
| £300,001 – £350,000 | £50,000 | 5% | £2,500 |
| Total | £2,500 |
The first-time buyer saves £5,000 on a £350,000 purchase.
First-Time Buyer: £600,000 Property
| Band | Amount | Rate | Tax |
|---|---|---|---|
| Up to £300,000 | £300,000 | 0% | £0 |
| £300,001 – £600,000 | £300,000 | 5% | £15,000 |
| Total | £15,000 |
A standard buyer purchasing the same £600,000 property would pay: Up to £125k = £0, £125k–£250k = £2,500, £250k–£600k = £17,500. Total = £20,000.
FTB saves £5,000.
Above £625,000 (No FTB Relief)
For a £700,000 purchase by a first-time buyer, no FTB relief is available. Standard rates apply:
| Band | Amount | Rate | Tax |
|---|---|---|---|
| Up to £125,000 | £125,000 | 0% | £0 |
| £125,001 – £250,000 | £125,000 | 2% | £2,500 |
| £250,001 – £925,000 | £450,000 | 5% | £22,500 |
| Total | £25,000 |
Additional Property Surcharge: 5%
If you are purchasing a second home, buy-to-let property, or any residential property while already owning another, an additional 5% surcharge applies on top of standard rates on each band.
From 31 October 2024, the surcharge increased from 3% to 5%.
Additional Property Rates
| Property Price | Standard Rate | Additional Property Rate |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 – £250,000 | 2% | 7% |
| £250,001 – £925,000 | 5% | 10% |
| £925,001 – £1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
Worked Example: Buy-to-Let Purchase at £250,000
| Band | Amount | Rate | Tax |
|---|---|---|---|
| Up to £125,000 | £125,000 | 5% | £6,250 |
| £125,001 – £250,000 | £125,000 | 7% | £8,750 |
| Total | £15,000 |
A standard purchase of the same £250,000 property would cost only £2,500 in SDLT.
Replacing a Main Residence
The surcharge does not apply if you are selling your previous main residence on the same day you buy the new one. If you buy before selling, you pay the higher rate — but you can claim a refund of the surcharge within 12 months of selling your old main home.
Non-UK Resident Surcharge
From April 2021, non-UK residents purchasing residential property in England face an additional 2% surcharge on top of any other applicable rates (including the additional property surcharge). This applies to individuals who have not been in the UK for at least 183 days in the 12 months preceding the transaction.
Corporate and Non-Natural Person Purchases
Companies purchasing residential property worth over £500,000 face the Annual Tax on Enveloped Dwellings (ATED) and may face a flat 15% SDLT rate. This is designed to discourage “enveloping” high-value homes in corporate structures for SDLT savings.
When SDLT Is Due
SDLT must be paid to HMRC within 14 days of completion of the property purchase. Your solicitor or conveyancer will typically handle the SDLT return and payment as part of the conveyancing process.
Failure to submit a return and pay within 14 days results in interest charges and penalties.
SDLT on Non-Residential Property
Non-residential (commercial) property is charged at different rates:
| Price | Rate |
|---|---|
| Up to £150,000 | 0% |
| £150,001 – £250,000 | 2% |
| Over £250,000 | 5% |
Mixed-use properties (part residential, part commercial) use non-residential rates, which can sometimes be advantageous.
Key Takeaways
- SDLT reverted to standard rates (0% up to £125k) from 1 April 2025 following the end of the temporary relief.
- First-time buyers pay 0% up to £300,000 and 5% between £300,001 and £625,000.
- The additional property surcharge is 5%, bringing the effective rate on buy-to-let purchases up to 5–17%.
- A standard buyer purchasing a £350,000 home pays £7,500; a first-time buyer pays £2,500.
- SDLT is due within 14 days of completion — your solicitor typically handles the return and payment.
Use the stamp duty calculator to calculate your exact SDLT liability based on purchase price and buyer type.