What Is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a government tax payable when you buy a property or land in England or Northern Ireland above a certain price threshold. It applies to both residential and commercial property purchases. Scotland uses a separate system called Land and Buildings Transaction Tax (LBTT), and Wales uses Land Transaction Tax (LTT).
Your conveyancing solicitor will calculate your SDLT liability and pay it to HMRC on your behalf within 14 days of completion. The cost must be paid before your solicitor can register the property in your name at the Land Registry.
Stamp Duty Rates (England & Northern Ireland)
Stamp duty is calculated in bands — only the portion of the price within each band is taxed at that rate, similar to income tax. Here are the current standard rates:
| Property Value 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% |
Example: Buying a property at £350,000 (standard rates)
- First £250,000 — 0% = £0
- £250,001 to £350,000 (£100,000) — 5% = £5,000
- Total SDLT: £5,000
First-Time Buyer Stamp Duty Relief
First-time buyers benefit from a higher zero-rate threshold, which reduces or eliminates their SDLT bill on many standard-price properties:
| Property Value Band (FTB) | SDLT Rate |
|---|---|
| Up to £425,000 | 0% |
| £425,001 to £625,000 | 5% |
| Over £625,000 | Standard rates apply (no FTB relief) |
First-time buyer relief applies when all purchasers are buying their first property and the property will be used as a main residence.
Example: First-time buyer purchasing at £480,000
- First £425,000 — 0% = £0
- £425,001 to £480,000 (£55,000) — 5% = £2,750
- Total SDLT: £2,750 (vs £11,500 under standard rates)
Additional Property Stamp Duty Surcharge
If you're buying an additional residential property (buy-to-let, second home, holiday home), a 5% surcharge applies on top of the standard rates across every band:
| Property Value Band | Standard Rate | Additional Property Rate |
|---|---|---|
| Up to £250,000 | 0% | 5% |
| £250,001 – £925,000 | 5% | 10% |
| £925,001 – £1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
Free Stamp Duty Calculator
📋 Calculate Your Stamp Duty (England & N. Ireland)
When Do You Pay Stamp Duty?
Your conveyancing solicitor will pay SDLT on your behalf to HMRC within 14 days of completion. You'll need to have the funds available at the same time as the rest of your purchase funds — typically transferred to your solicitor a day or two before completion day.
Who Is Exempt from Stamp Duty?
Some buyers are exempt from SDLT or eligible for reduced rates:
- Properties under £250,000 — no SDLT for standard buyers
- First-time buyers — zero rate up to £425,000
- Transfer of equity between spouses / civil partners — typically exempt
- Inherited property — no SDLT on inherited property (though separate inheritance tax rules apply)
- Zero-value transactions — gifted properties where no money changes hands
Scotland and Wales: Different Systems
Stamp Duty does not apply in Scotland or Wales. They have their own equivalent taxes:
- Scotland: Land and Buildings Transaction Tax (LBTT) — administered by Revenue Scotland
- Wales: Land Transaction Tax (LTT) — administered by the Welsh Revenue Authority
If you're buying in Scotland or Wales, ask your conveyancing solicitor about the applicable rates in those nations, as they differ from English SDLT.