UK Stamp Duty Land Tax (SDLT), Explained
Stamp Duty Land Tax is the tax you pay when buying property in England and Northern Ireland (Scotland and Wales have their own versions). It is charged in slices — like income tax — so you only pay each rate on the slice of the price it covers. It is also one of the most overlooked costs in a house purchase, so let us fix that.
The bands (2025/26, residential)
| Rate | Slice of price |
|---|---|
| 0% | Up to £125,000 |
| 2% | £125,001 – £250,000 |
| 5% | £250,001 – £925,000 |
| 10% | £925,001 – £1.5m |
| 12% | Above £1.5m |
0% on first £125,000 = £0
2% on next £125,000 = £2,500
5% on remaining £100,000 = £5,000
Total SDLT = £7,500
First-time buyer relief
First-time buyers pay 0% up to £300,000 and 5% on the slice from £300,001 to £500,000. Buy above £500,000 and the relief disappears entirely — you pay the standard bands. On a £350,000 first home, that means just £2,500 instead of £7,500. To qualify you must never have owned property anywhere in the world, and the home must be your main residence.
Buying an additional property
Second homes and buy-to-let purchases attract a 5% surcharge on top of the standard rates (raised from 3% in the October 2024 Budget). That turns the £350,000 example above into £7,500 + £17,500 = £25,000. It applies to each slice, so it bites hard — factor it in before you fall for a “bargain” investment flat.
Reliefs and edge cases worth knowing
A few situations get special treatment: transfers between spouses or civil partners are generally exempt, and purchases under £40,000 escape SDLT entirely. If you sell your previous main home within three years of buying the new one, you can usually reclaim the additional-property surcharge. The rules have sharp edges though — mixed-use properties and company purchases play by different rates, so unusual cases deserve professional advice.
Get your exact figure with our UK stamp duty calculator, then model the mortgage with the mortgage calculator.
When do I actually pay stamp duty?
Within 14 days of completion — your solicitor or conveyancer usually handles the return and payment as part of the purchase process. Miss the deadline and penalties start accruing.
Does SDLT apply in Scotland or Wales?
No. Scotland charges Land and Buildings Transaction Tax (LBTT) and Wales charges Land Transaction Tax (LTT), with their own bands and reliefs. This article covers England and Northern Ireland only.
Can I add stamp duty to my mortgage?
Lenders generally expect SDLT to be paid from your deposit or savings rather than borrowed — it cannot usually be rolled into the mortgage advance. Budget for it as cash.