Stamp Duty Land Tax — A Buyer's Guide
What SDLT is, who pays it, current rates, and the reliefs and surcharges that may apply — with a direct link to HMRC's official calculator for your figure.
Use HMRC's official calculator
SDLT rules have multiple reliefs, surcharges, and edge cases. For an accurate figure you can rely on, use HMRC's own calculator — the definitive source, updated whenever rates change.
Your conveyancer will confirm the exact amount payable before completion.
Stamp Duty Land Tax is one of the biggest upfront costs in any property purchase. Since the April 2025 threshold changes, many buyers — particularly first-time buyers — are paying materially more than they expected. Understanding what you'll pay before you make an offer is essential.
What Is SDLT and Who Pays It?
Stamp Duty Land Tax (SDLT) is a tax paid by the buyer when purchasing land or property in England and Northern Ireland over a certain price threshold. It's calculated as a percentage of the purchase price, charged in bands.
The tax must be paid and reported to HMRC within 14 days of completion. In practice, your solicitor or conveyancer will calculate the exact amount, submit the SDLT return, and handle payment on your behalf as part of the purchase process.
SDLT applies only in England and Northern Ireland. Scotland has Land and Buildings Transaction Tax (LBTT), and Wales has Land Transaction Tax (LTT). Rates and thresholds differ — see the regional section below.
Current SDLT Rate Bands
SDLT is a tiered tax — you pay each rate only on the portion of the price that falls within that band, not on the whole purchase price. The rates below are indicative and were in force at the time of writing. Always confirm the current rates with HMRC or your solicitor before relying on them.
| Purchase 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% |
| Purchase Price Band | SDLT Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| Over £500,000 | Standard rates apply — no FTB relief |
| Purchase Price Band | Rate (standard + surcharge) |
|---|---|
| Up to £125,000 | 5% |
| £125,001 – £250,000 | 7% |
| £250,001 – £925,000 | 10% |
| £925,001 – £1,500,000 | 15% |
| Over £1,500,000 | 17% |
If you're not a UK resident, an additional surcharge applies on top of all other rates — including the additional property surcharge if relevant. Rules on residency status and reclaiming the surcharge if you later become UK-resident are detailed — check gov.uk or speak to your conveyancer.
First-Time Buyer Relief
First-time buyers are entitled to reduced SDLT rates provided the property is being bought as their only or main residence, and the purchase price does not exceed the cap. Key points:
- Both buyers must qualify as first-time buyers if buying jointly — if either has owned property before (anywhere in the world), relief is not available.
- The property must be your only or main residence — not a second home or buy-to-let.
- Relief disappears entirely above the upper cap — standard rates apply to the whole purchase price.
- Inheritance of property can affect first-time buyer status. If in doubt, check with your solicitor before committing.
The Additional Property Surcharge
Buying an additional property — a second home, buy-to-let, or any purchase where you'll own two or more residential properties at the end of the transaction — attracts a surcharge on top of standard SDLT rates.
If you're selling your main home and buying a new one simultaneously, you pay standard rates — the surcharge doesn't apply. If you complete on the new property before selling your existing home, you'll initially pay the surcharge but can usually reclaim it if the previous home is sold within the allowed timeframe. Your conveyancer will advise on the specific rules and deadlines.
SDLT in Scotland and Wales
SDLT applies only in England and Northern Ireland. If you're buying elsewhere in the UK, use the relevant national service — the rates, bands, and reliefs are different.
Budgeting for the Full Cost of Buying
Stamp duty is just one of several upfront costs. A common mistake is budgeting only for the deposit and SDLT, then finding insufficient cash for survey and conveyancing fees. Factor in all of the following:
- Stamp Duty Land Tax — calculated by HMRC or your solicitor at completion.
- RICS Home Survey — typically £400–£1,200 depending on property and survey level. Essential for any property, especially older or unusual homes.
- Solicitor / conveyancing fees — typically £1,000–£2,500 including searches and Land Registry fees.
- Mortgage arrangement fees — often £500–£2,000 depending on the product.
- Removal costs — £500–£2,000+ depending on distance and volume.
- Initial repair or improvement works — based on your survey findings.
The survey is the one cost that most directly protects the rest of your budget. For a few hundred pounds, a RICS survey can identify defects that justify renegotiation — often saving many multiples of the survey fee, or preventing a bad purchase altogether.
When to Seek Professional Advice
For straightforward purchases, your conveyancer will calculate SDLT and handle the return. However, professional tax advice is worth considering if:
- You're buying a mixed-use property (residential with commercial element)
- You're buying multiple dwellings in a single transaction (Multiple Dwellings Relief may apply)
- You're buying through a limited company or corporate structure
- You hold property overseas — this can affect first-time buyer and additional property status
- You're buying with a family member who owns other property
- You're unsure whether a property counts as "replacement of main residence"
In these situations, the difference between the right and wrong SDLT treatment can be tens of thousands of pounds. A qualified tax adviser or experienced conveyancer is well worth the fee.
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CJ Bloor Property Consultants Limited is regulated by RICS. This page is provided for general information only and does not constitute tax, legal, or financial advice. SDLT rates and thresholds change from time to time — always confirm your liability using HMRC's official calculator and your solicitor before completion.
