What is Stamp Duty Land Tax (SDLT)?
Stamp Duty Land Tax is a tax levied by HMRC on the purchase of residential and commercial property in England and Northern Ireland. You must pay it within 14 days of completion, and your solicitor will typically handle the submission and payment on your behalf as part of the conveyancing process.
SDLT is applied on a tiered ("slice") basis — not as a flat percentage of the whole purchase price. Only the portion of the price that falls within each band is taxed at that band's rate, which means the system is inherently progressive: you never pay more tax by paying a slightly higher price for a property.
Standard SDLT Rates 2024/25 (Home Movers)
| Property Value Band | SDLT Rate |
|---|---|
| Up to £250,000 | 0% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
First-Time Buyer SDLT Relief 2024/25
First-time buyers in England and Northern Ireland benefit from a relief that means they pay no SDLT on the first £425,000 of the purchase price (provided the total purchase price does not exceed £625,000). On the portion between £425,001 and £625,000, they pay 5%.
If the property costs more than £625,000, first-time buyers do not qualify for any relief and pay standard rates. The relief applies only if all buyers are first-time buyers — if any buyer has previously owned a property anywhere in the world, standard rates apply.
| Property Value Band | First-Time Buyer Rate |
|---|---|
| Up to £425,000 | 0% |
| £425,001 – £625,000 | 5% |
| Over £625,000 | Standard rates apply |
Additional Property Surcharge — Buy-to-Let & Second Homes
If you are purchasing an additional residential property — a buy-to-let, holiday home, or any property you will own alongside your main residence — you pay a 3% surcharge on top of the standard SDLT rates. This applies to the entire purchase price, not just the portion above a threshold, making it a significant additional cost on larger purchases.
| Property Value Band | Additional Property Rate |
|---|---|
| Up to £250,000 | 3% |
| £250,001 – £925,000 | 8% |
| £925,001 – £1,500,000 | 13% |
| Over £1,500,000 | 15% |
Scotland and Wales — Different Systems
Scotland has its own property transaction tax called Land and Buildings Transaction Tax (LBTT), administered by Revenue Scotland. Wales uses Land Transaction Tax (LTT), administered by the Welsh Revenue Authority. Both have different rates and thresholds to England — our calculator covers England and Northern Ireland only.
Worked Example — £400,000 Home Mover
On a £400,000 property purchase as a standard home mover:
- First £250,000 at 0% = £0
- Next £150,000 (£250,001–£400,000) at 5% = £7,500
- Total SDLT = £7,500 (effective rate 1.875%)
When Must Stamp Duty Be Paid?
SDLT must be paid to HMRC within 14 days of completion. Your conveyancing solicitor will almost always handle this on your behalf as part of the completion process, submitting the SDLT return and paying the tax from funds you have provided. You should receive a receipt (SDLT5 certificate) which is needed to register the property at Land Registry.
Can Stamp Duty Be Added to a Mortgage?
Generally, no — most lenders will not add SDLT to the mortgage, as it is not part of the purchase price of the property. You typically need to have stamp duty available as cash alongside your deposit. A small number of specialist mortgage products may allow it in limited circumstances, but this should be discussed with your mortgage broker.
Frequently Asked Questions
Do I pay stamp duty on a new build?
Yes — stamp duty applies to new build properties in the same way as existing ones. Some developers offer to contribute to stamp duty costs as an incentive, but this should be carefully scrutinised as it may be reflected in a higher purchase price.
Is stamp duty payable on shared ownership properties?
For shared ownership, you can choose to pay SDLT on the full market value upfront (staircasing method) or just on the share you are purchasing. First-time buyer relief can also apply. The rules are complex — always take specialist advice.
What if I buy with someone who already owns a property?
If any buyer on the mortgage already owns a property anywhere in the world, the additional 3% surcharge applies to the whole purchase — even if the other buyer is a first-time buyer.