What Is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a tax payable to HMRC when you buy land or property in England or Northern Ireland above a certain threshold. Scotland has its own Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT).
SDLT is paid by the buyer, not the seller. Your solicitor will calculate and submit the return on your behalf, normally within 14 days of completion.
Current Residential SDLT Rates (2025)
| Property Value Band | Standard Rate |
|---|---|
| Up to £250,000 | 0% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
SDLT is calculated on a slice basis - each portion of the price is taxed at its applicable rate, not the whole purchase price at the highest rate.
First-Time Buyer Relief
First-time buyers pay no SDLT on the first £425,000 of a property valued up to £625,000. On the portion between £425,001 and £625,000, a 5% rate applies. Above £625,000, no first-time buyer relief is available and standard rates apply.
To qualify, you must never have owned a residential property - in the UK or abroad - and the property must be your only or main residence.
The 3% Additional Dwelling Surcharge
If you already own a residential property and are buying an additional one (buy-to-let, holiday home, second home), a 3% surcharge applies on top of standard rates. This applies even if you are replacing a previous main residence, though a refund is available if you sell the old home within three years.
Non-Residential and Mixed Use Property
Commercial property and mixed-use properties (e.g. a shop with a flat above) attract different, generally lower rates and may avoid the 3% surcharge. Some buyers deliberately structure transactions to benefit from mixed-use rates - HMRC scrutinises this closely, so take specialist advice.
How to Pay
Your conveyancing solicitor will collect the SDLT amount at completion and submit the return electronically to HMRC. The deadline is 14 days from completion; late filing attracts automatic penalties starting at £100.
Disclaimer: Tax law changes frequently. The figures above reflect rates as at mid-2025. Always verify with HMRC's online calculator or a qualified solicitor before exchange.
