Stamp Duty Land Tax (SDLT) is a tax on property purchases in England and Northern Ireland. Scotland and Wales have their own equivalents — Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) respectively. The amount you pay depends on the purchase price, whether you are a first-time buyer, and whether you already own another property.
SDLT Rates — England & Northern Ireland (from April 2025)
SDLT is calculated on a slab basis — you pay the rate for each portion of the price within each band, not the entire price at the highest rate.
| Purchase Price Band | 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: A property costing £350,000:
- First £125,000 at 0% = £0
- Next £125,000 at 2% = £2,500
- Next £100,000 at 5% = £5,000
- Total SDLT = £7,500
First-Time Buyer Relief
First-time buyers purchasing a property up to £625,000 benefit from a higher nil-rate band:
| Band | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
If the property price exceeds £625,000, first-time buyer relief is not available and standard rates apply. This relief only applies in England and Northern Ireland — Scotland and Wales have their own schemes.
Additional Property Surcharge
If you already own a residential property (or are buying a second home, holiday let, or buy-to-let), you pay an additional 5% surcharge on top of standard SDLT rates on each band. This surcharge increased from 3% to 5% from 31 October 2024.
Example: The same £350,000 property as a second home:
- First £125,000 at 5% (0% + 5%) = £6,250
- Next £125,000 at 7% (2% + 5%) = £8,750
- Next £100,000 at 10% (5% + 5%) = £10,000
- Total SDLT = £25,000 (vs £7,500 without surcharge)
Scotland — LBTT
Scotland replaced SDLT with Land and Buildings Transaction Tax (LBTT) in April 2015. The current bands are:
| Band | Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Over £750,000 | 12% |
First-time buyers in Scotland receive a nil-rate band up to £175,000. The Additional Dwelling Supplement (ADS) is 8% for additional properties.
Wales — LTT
Wales introduced Land Transaction Tax (LTT) in April 2018:
| Band | Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Wales does not offer a specific first-time buyer relief. The higher rates for additional properties add 4% to each band.
When Is SDLT Due?
SDLT must be filed and paid within 14 days of completion. Your solicitor or conveyancer normally handles the return and payment. Late filing incurs automatic penalties starting at £100 and interest on unpaid tax.
Key Takeaway
Stamp duty is one of the largest upfront costs of buying a property, and the rules differ across England/NI, Scotland, and Wales. First-time buyer relief can save thousands, while the additional property surcharge significantly increases costs for second homes and buy-to-lets. Use our stamp duty calculator to see the exact figure for your purchase.