What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a tax you pay when you buy property or land in England and Northern Ireland. (Scotland has Land and Buildings Transaction Tax; Wales has Land Transaction Tax — both work similarly but with different rates.)
SDLT is calculated on the purchase price of the property, using a tiered rate system: you pay the relevant rate only on the portion of the price that falls within each band — similar to how income tax bands work.
Standard residential rates (2025–26)
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Calculate your stamp duty →From 1 April 2025, the temporary higher thresholds introduced in September 2022 reverted to their previous levels. The standard rates for residential purchases are:
| Property price band | 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 £400,000 home: 0% on the first £125,000, 2% on £125,001–£250,000 (£2,500), 5% on £250,001–£400,000 (£7,500) = £10,000 total SDLT.
First-time buyer relief
First-time buyers in England and Northern Ireland pay no SDLT on properties up to £425,000, and pay 5% only on the portion from £425,001 to £625,000. Properties over £625,000 do not qualify for the relief — standard rates apply in full.
To qualify, all buyers in the transaction must be first-time buyers (never owned residential property anywhere in the world).
Additional dwelling surcharge — 5%
From 31 October 2024, buyers purchasing an additional residential property (buy-to-let, second home, holiday home) pay a 5% surcharge on top of the standard rates at every band. This was increased from 3% by the Autumn 2024 Budget.
The surcharge also applies to companies and non-natural persons buying residential property.
If you're replacing your main residence, you won't pay the surcharge — but timing matters. If you complete the purchase of a new home before selling your old one, you'll pay the surcharge upfront. You can then claim a refund within 12 months of selling your previous main residence.
Non-UK resident surcharge
Non-UK residents buying residential property in England and Northern Ireland pay an additional 2% surcharge on top of standard rates (and on top of the additional dwelling surcharge if applicable). This has applied since April 2021.
When do you pay?
SDLT must be paid and a return filed with HMRC within 14 days of completion. In practice, your solicitor or conveyancer handles this and typically includes it in the completion statement.
Other exemptions and reliefs
No SDLT is due on property transferred as a gift (with no mortgage), inherited property, or transfers between spouses and civil partners as part of a divorce or dissolution settlement. Multiple Dwellings Relief (for buying several properties in one transaction) was abolished from June 2024. Mixed-use properties (with both residential and commercial elements) attract the non-residential SDLT rates, which are generally lower.