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Stamp Duty Land Tax (SDLT) Explained
Stamp Duty Land Tax (SDLT) applies to land and property purchases in England and Northern Ireland. The thresholds reverted on 1 April 2025, and the additional dwellings surcharge rose to 5% in October 2024.
Quick answers
What is Stamp Duty Land Tax?
SDLT is the tax on land and property purchases in England and Northern Ireland (Scotland and Wales have their own equivalents). Residential rates are 0% to £125,000, then rise in slice bands to 12% above £1.5m. The buyer's solicitor usually files the return and pays within 14 days of completion.
How much SDLT do first-time buyers pay?
First-time buyers pay 0% on the first £300,000 and 5% on the slice from £300,000 to £500,000. No relief at all if the price exceeds £500,000. Both buyers must be first-time buyers and the property must be intended as the main residence.
What is the additional dwellings surcharge?
An extra 5% (raised from 3% on 31 October 2024) on every SDLT band when you buy a second or additional residential property worth £40,000 or more. Reclaimable if you sell your previous main residence within 3 years.
Where SDLT applies
SDLT applies to property purchases in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT); Wales uses Land Transaction Tax (LTT).
Residential SDLT rates from 1 April 2025
| Portion of price | Rate |
|---|---|
| £0 – £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Rates are slice-based: each band is taxed only on the portion of price falling in that band.
First-time buyer relief
For purchases up to £500,000:
- 0% on the first £300,000
- 5% on the slice between £300,000 and £500,000
No relief at all if the price exceeds £500,000.
Additional dwellings surcharge
If you own another residential property anywhere in the world and the new property costs £40,000 or more, add 5% (raised from 3% on 31 October 2024) to every band — including the 0% band.
You may reclaim the surcharge if you sell your previous main residence within 3 years (extended exceptionally during COVID).
Non-resident surcharge
A further 2% applies to non-UK residents buying residential property — on top of standard rates and any additional dwellings surcharge.
Companies buying residential property
- Properties bought by companies (with limited exceptions) face 17% SDLT on the whole price if value exceeds £500,000
- Annual Tax on Enveloped Dwellings (ATED) may also apply
Non-residential and mixed-use
| Portion | Rate |
|---|---|
| £0 – £150,000 | 0% |
| £150,001 – £250,000 | 2% |
| Above £250,000 | 5% |
Mixed-use rates can be substantially lower than residential — but HMRC scrutinises mixed-use claims closely.
Filing and payment
The buyer's solicitor usually files the SDLT return within 14 days of completion and pays the tax. Late filing penalties start at £100 plus interest on unpaid tax.
Reliefs to be aware of
- Multiple Dwellings Relief was abolished from 1 June 2024
- Group relief, charity relief, social housing and incorporation relief may apply in specific scenarios
General guidance, not tax advice. Speak to a qualified accountant for advice tailored to your situation. Figures relate to the 2025/26 UK tax year. Source: HMRC, gov.uk.
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