Key takeaways
- Stamp Duty Land Tax (SDLT) is paid on buying land or property in England and Northern Ireland; Scotland and Wales have their own taxes.
- Residential rates start at £125,000, with relief for first-time buyers up to £300,000 on homes costing £500,000 or less.
- Additional homes pay a 5% surcharge on every band; non-UK residents pay a further 2%.
- The return and payment are due within 14 days of completion.
Stamp Duty Land Tax (SDLT) is a tax on buying land and property, paid by the buyer. It applies to residential and commercial purchases and to new leases. For most home buyers it is the biggest tax cost of moving, so it is worth understanding how it is worked out and which reliefs apply.
SDLT at a glance (from 1 April 2025)
| Residential property price (portion) | Main home | Additional home |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5 million | 10% | 15% |
| Over £1.5 million | 12% | 17% |
Non-UK resident buyers of residential property pay an extra 2% on each band. Commercial and mixed-use property pays 0% up to £150,000, 2% to £250,000 and 5% above.
Our stamp duty calculator works out the tax on any price.
Guides in this section
- SDLT rates and bands: residential, first-time buyer, additional property, non-resident, company and commercial rates, with worked examples.
- Stamp duty for first-time buyers: who qualifies for 0% up to £300,000, joint purchases and shared ownership.
- SDLT on commercial property: purchases, VAT in the price, leases, mixed-use property and six or more dwellings.
- SDLT reliefs and exemptions: gifts, divorce, inheritance, group relief, charities and reclaiming the 5% surcharge.
- SDLT returns and deadlines: the 14-day rule, who files, payment, penalties and amendments.
- The SDLT surcharge on additional properties: how the 5% higher rates affect landlords and second home buyers.
Who pays SDLT
The buyer pays SDLT, usually through their solicitor or conveyancer, who files the return and pays HMRC on completion. It is charged on the chargeable consideration: the price paid, including any VAT, debt taken over, or other value given in return for the property.
How the tax is calculated
SDLT works in slices. Each rate applies only to the part of the price that falls in that band, so moving into a higher band does not increase the tax on the whole price. The exception is first-time buyer relief, which is lost entirely if the price is over £500,000.
Example
A home mover buys a house for £350,000:
| Slice | Rate | Tax |
|---|---|---|
| First £125,000 | 0% | £0 |
| Next £125,000 | 2% | £2,500 |
| Final £100,000 | 5% | £5,000 |
| Total | £7,500 |
If the same house were a buy-to-let, each band would be 5 points higher, adding £17,500 for a total of £25,000.
Scotland and Wales
- Scotland uses Land and Buildings Transaction Tax (LBTT), run by Revenue Scotland, with its own rates, a first-time buyer relief and an Additional Dwelling Supplement.
- Wales uses Land Transaction Tax (LTT), run by the Welsh Revenue Authority, with its own residential bands and higher rates for additional properties.
Northern Ireland uses SDLT, the same as England.
Related taxes when buying property
- Annual Tax on Enveloped Dwellings for residential properties worth over £500,000 owned by companies
- Capital Gains Tax when you later sell a property that is not your main home; see CGT on a second home
- VAT on some commercial property purchases; see VAT on property
Frequently asked questions
Who pays stamp duty, the buyer or the seller?
The buyer. Sellers do not pay SDLT, although they may pay Capital Gains Tax on a gain.
How much stamp duty will I pay on a £300,000 house?
£5,000 for a home mover, nothing for a first-time buyer, and £20,000 if it is an additional property.
When do I pay stamp duty?
Within 14 days of completion, when the SDLT return is due. Your conveyancer usually collects the money before completion.
Does stamp duty apply in Scotland and Wales?
No. Scotland has Land and Buildings Transaction Tax and Wales has Land Transaction Tax.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance in October 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.