Stamp Duty Land Tax (SDLT) is a tax paid to HMRC when you buy a property or land in England above a certain price. It is one of the most significant upfront costs in any property transaction, and understanding how it works helps you budget accurately and avoid surprises.
This guide covers the current SDLT rates for residential property in England (Wales has its own Land Transaction Tax; Scotland has Land and Buildings Transaction Tax).
Important: SDLT rates and thresholds change periodically. Always verify the current rates at gov.uk/stamp-duty-land-tax before completing any calculations.
SDLT is calculated on a tiered basis — like income tax. You pay the applicable rate only on the portion of the purchase price that falls within each band, not on the full purchase price.
| Purchase Price Portion | SDLT Rate |
|---|---|
| Up to £250,000 | 0% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Example: Buying a property for £400,000 as a home mover (not first-time buyer, not second home):
First-time buyers benefit from a relief that reduces their SDLT bill.
| Purchase Price Portion | SDLT Rate |
|---|---|
| Up to £425,000 | 0% |
| £425,001 to £625,000 | 5% |
| Above £625,000 | Standard rates apply (no relief) |
Example: First-time buyer purchasing a property for £350,000:
Example: First-time buyer purchasing a property for £500,000:
Example: First-time buyer purchasing a property for £700,000:
Buyers purchasing an additional residential property — including buy-to-let investments, holiday homes, or any property when they already own another — pay an additional 3% surcharge on top of the standard rates.
| Purchase Price Portion | SDLT Rate |
|---|---|
| Up to £250,000 | 3% |
| £250,001 to £925,000 | 8% |
| £925,001 to £1,500,000 | 13% |
| Above £1,500,000 | 15% |
Example: Landlord buying a buy-to-let property for £200,000:
Companies and non-UK residents purchasing residential property face higher rates. If you're buying through a limited company or as an overseas buyer, consult a tax adviser — the rules are more complex.
For shared ownership purchases, SDLT can be paid either on:
A tax adviser or solicitor should advise which approach is more cost-effective for your circumstances.
Your solicitor is responsible for submitting your SDLT return to HMRC and paying any tax due. This must happen within 14 days of completion. The cost is typically added to your completion statement and funds transferred to your solicitor before completion.
Several exemptions and reliefs exist:
These reliefs are subject to conditions and HMRC scrutiny. Any claimed relief should be confirmed with a solicitor or tax adviser.
If a property is transferred to you as a gift with no payment, SDLT is not payable. However, if you take on a mortgage as part of the transfer, SDLT applies to the value of the debt assumed.
When calculating your total purchase costs, factor SDLT in from the start. The gov.uk SDLT calculator gives a reliable estimate for standard transactions. For non-standard situations (second homes, mixed-use, company purchases, non-UK residents), take tax advice early in the process.
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Disclaimer: This guide is provided for general information purposes only and does not constitute financial, legal, or tax advice. SDLT rates, thresholds, and reliefs change regularly and vary depending on individual circumstances. Always verify current rates at gov.uk and consult a qualified solicitor or tax adviser before completing a property transaction. KentLoop is a directory service and does not provide tax or financial advice.
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