Property & Mortgages
Stamp Duty Land Tax (SDLT) is charged on most property purchases in England and Northern Ireland. Understanding how it works, who pays what, and whether any reliefs apply can save you thousands.
SDLT is a tiered tax — like income tax, you pay each rate only on the portion of the purchase price that falls within that band, not on the full amount. This is a common misunderstanding: a £300,000 purchase does not mean 5% of the whole price.
Example: £350,000 home purchase (standard buyer)
These rates apply to main home purchases by buyers who already own property. First-time buyers and second-home buyers have different rates — see below.
| Purchase price band | SDLT rate |
|---|---|
| Up to £250,000 | 0% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
These thresholds replaced the temporary higher thresholds (£250,000 nil-rate, £425,000 FTB relief) that were in place from September 2022 to March 2025.
If you have never owned a home in the UK or abroad, you qualify for first-time buyer relief, which reduces the SDLT on your purchase up to certain limits.
| Purchase price band | SDLT rate (FTB) |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Above £500,000: standard rates apply in full (no relief) | |
Example: £450,000 first-time buyer purchase
A standard buyer would have paid £10,000 — saving £2,500.
Important: both buyers must be first-time buyers
If you are buying jointly and one of you has previously owned a home, neither of you qualifies for first-time buyer relief — the full standard rates apply to the whole purchase.
If you already own a residential property anywhere in the world and are buying an additional one, a 5 percentage point surcharge applies on top of every standard rate band. This applies to second homes, buy-to-let investments, and holiday homes.
| Purchase price band | Standard rate | Additional dwelling rate |
|---|---|---|
| Up to £250,000 | 0% | 5% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
The surcharge was raised from 3% to 5% in October 2024. If you buy a new main home before selling your old one, you pay the surcharge initially, but can claim a refund within 36 months if you sell the previous property within that window.
SDLT only applies in England and Northern Ireland. Different taxes apply elsewhere:
Scotland: LBTT
Land and Buildings Transaction Tax, administered by Revenue Scotland. Different thresholds and rates — check gov.scot for current figures. A 6% Additional Dwelling Supplement applies for second homes.
Wales: LTT
Land Transaction Tax, administered by the Welsh Revenue Authority. Different thresholds and rates — check gov.wales for current figures. A 4% higher residential rates surcharge applies for additional properties.
SDLT is due within 14 days of completion — the day you legally take ownership. In practice, your solicitor or conveyancer almost always handles the SDLT return and payment on your behalf as part of the conveyancing process, collecting the money from you at or before completion.
If HMRC does not receive the return and payment within 14 days, automatic penalties and interest apply. Late filing penalties start at £100 for up to 3 months late, rising to £200 and then 5% of the tax due. Interest accrues daily on unpaid amounts.
Exempt transactions (no SDLT due)
Key numbers 2026/27