Stamp Duty Land Tax (SDLT) is a tax paid when you buy property or land in England or Northern Ireland. It applies to both residential and commercial purchases.
When Does SDLT Apply?
You pay SDLT if you:
- Buy a freehold or leasehold property
- Buy a shared ownership property
- Transfer land or property in exchange for payment (e.g. as part of a divorce or inheritance deal involving money or debt)
- Buy a second home or buy-to-let property
- Buy non-residential or mixed-use property
For Residential Property, SDLT usually applies when:
- The purchase price exceeds £250,000 (for most buyers)
- Or £425,000 if you are a first-time buyer eligible for relief
Exemptions (No SDLT Due)
You usually don’t pay SDLT if:
- The property price is below the threshold (£250,000 or £425,000 for first-time buyers)
- The property is gifted with no mortgage
- It is inherited without any consideration or payment
Stamp Duty Calculation (rates for 2025-26 tax year)
- Main Residence and you own no other property but not first-time buyer
| Property Price | SDLT Rate |
| Up to £250,000 | 0% |
| £250,001 – £925,000 | 5% on the portion above £250k |
| £925,001 – £1.5 million | 10% on the portion above £925k |
| Above £1.5 million | 12% on the portion above £1.5m |
| First-Time Buyers Relief (Main Home) | |
| Property Price | SDLT Rate |
| Up to £425,000 | 0% |
| £425,001–£625,000 | 5% on the portion above £425k |
| Over £625,000 | No relief: standard rates apply |
- Additional Property Rates (Buy-to-Let / Second Home)
| Property Price | Standard Rate | +3% Surcharge | Total Rate |
| Up to £250,000 | 0% | 3% | 3% |
| £250,001 – £925,000 | 5% | 3% | 8% |
| £925,001 – £1.5 million | 10% | 3% | 13% |
| Above £1.5 million | 12% | 3% | 15% |
- Non-UK Residents Surcharge
If you’re not UK-resident for SDLT purposes, there’s an additional 2% surcharge on top of the above.
So, for a non-resident buying an additional property, your top rate could be up to 17%.
Paying Stamp Duty
The buyer must pay Stamp Duty Land Tax (SDLT) – and submit the return – within 14 days of completion (the day the property transaction is legally finalized). In general, your solicitor will handle the filing and payment on your behalf.
Even if no tax is due, you still need to submit a return unless the purchase is exempt (e.g., under the threshold or a genuine gift).
