TL;DR
In short
- Stamp Duty Land Tax (SDLT) is a tax on buying property or land in England and Northern Ireland; Scotland has Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT).
- Current rates: 0% up to £125,000, 2% on £125,001 to £250,000, 5% on £250,001 to £925,000, 10% on £925,001 to £1.5 million and 12% above £1.5 million.
- First-time buyers pay no SDLT up to £300,000 and 5% on the portion from £300,001 to £500,000; above £500,000 the relief cannot be claimed.
- Buying an additional residential property for £40,000 or more usually adds 5% to each band, and buyers who are not UK resident usually pay an extra 2% surcharge.
- The SDLT return must be sent to HMRC and the tax paid within 14 days of completion.
If you are planning to buy a property in the UK or are going through this process, you will certainly have come across Stamp Duty Land Tax. In this article you will find an explanation of this term, the current rates and information on when and how the tax is paid.
Stamp Duty Land Tax: definition
Stamp Duty Land Tax (SDLT) is a tax on the purchase of property (house, flat, land) in England and Northern Ireland. As a general rule, the tax liability lies with the purchaser and the tax must be paid within 14 days of completion.
Source: GOV.UK
A purchase below the nil-rate threshold is free of SDLT unless a surcharge applies, and reliefs are available in some situations (see GOV.UK).
In the definition we gave above, there was a mention of England and Northern Ireland. Does this mean that buying a house in Scotland does not involve paying tax? Unfortunately, no. There are also transaction taxes in both Wales and Scotland, but they are named differently and their rates are not the same as in England. The Welsh equivalent of stamp duty is called land transaction tax (LTT), while the Scottish equivalent is called land and buildings transaction tax (LBTT).
Stamp Duty Land Tax rates
Temporary higher nil-rate thresholds ended on 31 March 2025; the rates below apply from 1 April 2025.
| Property price or portion | SDLT rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
Why does the table refer to portions? SDLT is usually charged in slices: each rate applies only to the part of the price that falls within that band, so the tax rises as the price goes above each threshold. If you buy a property for, say, £100,000, the tax calculation is very simple - the amount due is simply 0. It will be different if you buy a property for, say, £900,000. This example assumes a buyer without first-time buyer status who does not pay a surcharge. The tax payable is:
SDLT on a £900,000 purchase at current rates:
- Up to £125,000 (0%): £0
- £125,001 to £250,000 (2%): £2,500
- £250,001 to £900,000 (5%): £32,500
Total amount payable: £35,000
You can find current property prices in the UK in our article on the subject.
You can also find current Stamp Duty Land Tax rates on the UK Government website.
Stamp Duty Land Tax and first-time buyer status
First-time buyers can claim relief: they pay no SDLT up to £300,000 and 5% on the portion from £300,001 to £500,000. If the price is above £500,000, first-time buyer relief cannot be claimed and the standard rates apply. You and anyone you are buying with must be first-time buyers. Source: GOV.UK
Higher rates for additional properties and non-UK residents
Higher rates apply if you buy a residential property for £40,000 or more and will own more than one residential property. Since 31 October 2024, these higher rates add 5% to each SDLT band. There are exceptions, for example when you are replacing your main residence; see GOV.UK for the full rules.
Buyers who are not UK resident usually pay an extra 2% surcharge. You are generally treated as non-resident if you were not present in the UK for at least 183 days in the 12 months before the purchase. Source: GOV.UK
Stamp Duty for leasehold properties
SDLT on the price you pay for a leasehold property is charged at the same rates as for a freehold purchase. If a new lease is granted, SDLT may also be due on the rent: if the total rent over the life of the lease (its net present value) is more than £125,000, you pay 1% on the portion over £125,000. How you fund the purchase does not change this - SDLT is worked out on the price you pay for the property, whether you pay cash or take out a loan.
Calculating your Stamp Duty
As you can see, calculating the amount due can be a little complicated. HMRC provides an official Stamp Duty Land Tax calculator on GOV.UK.
Other Stamp Duty calculators
You will also find other calculators on the internet, for example:
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MoneyHelper also offers a stamp duty calculator.
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Calculate stamp duty (SDLT) in England and Northern Ireland, a very clear calculator that allows you to download the calculation as a PDF file.
When and how do I pay Stamp Duty Land Tax?
The duty to pay Stamp Duty Land Tax usually arises on the date of completion of the transaction. According to the rules, the purchaser must submit the SDLT return to HMRC within 14 days of completion. In practice, your solicitor or conveyancer usually sends the SDLT return and pays the tax on your behalf, using funds you provide before completion. You remain legally responsible for making sure the return is sent and the tax is paid within 14 days.
Of course, nothing prevents you from filing the return and paying the tax yourself. A comprehensive guide can be found on the Stamp Duty Land Tax online and paper returns page.
Summary
The information we have gathered should be comprehensive, but if you have any questions, we are of course here to help. If you are planning to buy a property in the UK, we encourage you to get in touch. Our advisers can guide you through the mortgage process and explain the next steps. The progress of a purchase also depends on the lender, conveyancers and other parties involved.
By the way, we encourage you to read other articles on our blog. Here are a few posts which you may find useful:
FAQ
Frequently asked questions
What are the current Stamp Duty Land Tax rates?
From 1 April 2025, SDLT on a residential purchase in England and Northern Ireland is 0% up to £125,000, 2% on the portion from £125,001 to £250,000, 5% on £250,001 to £925,000, 10% on £925,001 to £1.5 million and 12% above £1.5 million. Surcharges or first-time buyer relief can change the amount due.
Do first-time buyers pay Stamp Duty Land Tax?
First-time buyers pay no SDLT up to £300,000 and 5% on the portion from £300,001 to £500,000. If the price is above £500,000, first-time buyer relief cannot be claimed and the standard rates apply. You and anyone you are buying with must be first-time buyers.
How much extra Stamp Duty do I pay on an additional property?
If you buy a residential property for £40,000 or more and will own more than one residential property, 5% is added to each SDLT band. There are exceptions, for example when you are replacing your main residence.
When and how is Stamp Duty Land Tax paid?
The SDLT return must be sent to HMRC and the tax paid within 14 days of completion. In practice, your solicitor or conveyancer usually sends the SDLT return and pays the tax on your behalf, using funds you provide before completion. You remain legally responsible for making sure the return is sent and the tax is paid within 14 days.
Do I pay Stamp Duty Land Tax in Scotland or Wales?
No. SDLT applies in England and Northern Ireland. Scotland has Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT), with their own rates.
