Stamp Duty Land Tax UK: Rates, Reliefs and Investor Checks
Stamp Duty Land Tax (SDLT) is a property transaction tax applying mainly to qualifying acquisitions of land and property in England and Northern Ireland. It is not the same as the property purchase taxes used in Scotland or Wales. The amount can depend on the purchase price, ownership circumstances, residency, property type, transaction date and any qualifying reliefs.
This guide explains the residential bands in effect from 1 April 2025 and the additional-property surcharge. Rates can change: calculate your own transaction using the current HMRC residential rates and official SDLT calculator. Obtain independent conveyancing and tax advice before completing a purchase.
Where Stamp Duty Land Tax Applies
SDLT generally applies to chargeable property transactions in England and Northern Ireland. The rules and rates depend on whether the purchase is residential, non-residential, mixed-use or another transaction type. Buying a property through a company, acquiring more than one dwelling, using shared ownership or buying as a non-UK resident can introduce additional rules.
Wales: Land Transaction Tax (LTT) applies instead. See Welsh Government guidance.
Scotland: Land and Buildings Transaction Tax (LBTT) applies. See Revenue Scotland.
For England and Northern Ireland, the charge is calculated in bands on the relevant portions of the consideration, not usually as one rate applied to the entire price. Some transactions are exempt or eligible for relief; these must be assessed on their facts.
Current SDLT Rates for Residential Property
For standard residential purchases in England and Northern Ireland from 1 April 2025, the main SDLT bands are 0%, 2%, 5%, 10% and 12% on successive parts of the price. Buyers of additional dwellings generally pay higher rates. The figures below are the standard bands before any additional-property or non-resident uplift.
Standard SDLT Residential Bands (from 1 April 2025)
| Portion of residential purchase price | Standard SDLT rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Illustration: a qualifying standard residential purchase of £300,000 incurs £2,500 on the portion from £125,001 to £250,000 and £2,500 on the £50,000 above that: £5,000 SDLT, before any surcharge or relief. HMRC’s current rates should be checked for the transaction date.
Stamp Duty on Second Homes and Buy-to-Let Properties
Buyers of an additional dwelling—which can include a buy-to-let or second home—may face a surcharge of 5 percentage points above standard residential SDLT rates, rather than the historic 3 percentage points. The higher rate is not charged as 5% of the full price on top of a flat standard charge; it increases each applicable band, subject to the rules.
| Purchase price portion | Additional-property band |
|---|---|
| Up to £125,000 | 5% |
| £125,001–£250,000 | 7% |
| £250,001–£925,000 | 10% |
| £925,001–£1.5 million | 15% |
| Above £1.5 million | 17% |
Illustration: an additional residential property purchased for £300,000 incurs £6,250 + £8,750 + £5,000 = £20,000 before any other adjustment. Liability depends on ownership of other property, replacement of a main residence, company structures and potentially other circumstances. Check HMRC’s additional-property guidance.
Stamp Duty Relief for First-Time Buyers
From 1 April 2025, qualifying first-time buyers acquiring a residential property for £500,000 or less to occupy as their only or main residence may claim First-Time Buyers’ Relief. The eligible rates are 0% on the first £300,000 and 5% on the remainder up to £500,000. For a purchase price above £500,000, this relief does not apply and the standard rates are generally used.
Where two or more people buy together, the conditions must be satisfied by all relevant purchasers. A buy-to-let purchase does not normally meet the qualifying main-residence condition. Check the official first-time-buyer relief rules; the former £425,000/£625,000 thresholds applied to earlier transactions and should not be used for current acquisitions.
Stamp Duty for Non-Residents
Certain purchases by non-UK residents may attract an additional 2 percentage points of SDLT on residential property in England and Northern Ireland, subject to the statutory residence tests and reliefs. This can apply on top of the additional-property higher rates where both apply.
Do not assume citizenship alone determines the surcharge: the relevant SDLT residence rules, ownership structure and transaction details matter. Overseas buyers should obtain a transaction-specific calculation from a qualified conveyancer or tax adviser, and read HMRC non-resident SDLT guidance. Foreign investors researching UK purchases can also see our UK property sourcing for overseas investors.
Repayment of Higher Rates of Stamp Duty
If you paid the higher rates when buying a new main residence before disposing of your former main residence, you may be entitled to claim a refund after the former residence is sold within the applicable time limit and other conditions are met. The rules distinguish replacing a main home from buying an additional investment property.
Check the relevant deadlines, disposal date, previous residence and ownership facts with HMRC’s higher-rate guidance and a solicitor before assuming a refund is available.
Eligibility for Repayment
Refund eligibility depends on whether a former main residence has been replaced, when the old home is disposed of, the current purchase details and the rules applying to the transaction. Merely selling any additional property does not automatically entitle a buy-to-let investor to reclaim the higher rates. HMRC provides guidance on the conditions and exceptional situations; obtain a professional review where the facts are unusual.
How to Apply for a Refund?
Where you believe a higher-rate SDLT refund is due, check which HMRC claim process applies, identify the transaction reference and relevant dates, and provide information about the old and new residences. Make sure the claim is made within the applicable filing deadline.
Instructions and timescales can change; follow the current official HMRC guidance and, where appropriate, have a conveyancer prepare or review the claim.
How to Pay Stamp Duty?
In a chargeable transaction, the SDLT return and payment are generally due within 14 days of the transaction’s effective date, normally completion. Your conveyancer usually prepares the return and arranges payment. The requirement to file and the amount of tax are separate questions; some exempt transactions may not require an SDLT return.
Complete the SDLT Return
The SDLT return identifies the parties, property, relevant consideration, ownership circumstances and any reliefs or surcharges. Your solicitor or conveyancer normally submits the return to HMRC. The correct information should be confirmed before submission, including when buying through a company, buying additional property or being treated as non-UK resident.
Calculate the SDLT Owed
Use HMRC’s calculator to estimate the liability for the transaction date and purchase circumstances. Confirm the result with your adviser where ownership structures, linked transactions, companies, reliefs or property types make the calculation more complicated.
Submit the SDLT Return
HMRC normally requires submission of the SDLT return within 14 days of the effective date. Your conveyancer can advise whether the transaction must be notified and will usually submit the return. Late submission or late payment can result in penalties or interest. Refer to GOV.UK’s SDLT guidance.
Pay the SDLT
SDLT is usually paid to HMRC through the conveyancer after completion, often from funds the buyer has already provided. Confirm the tax and payment arrangements before completion because purchase funds must cover the tax as well as the price, legal fees, financing costs and any immediate works.
When is Stamp Duty Not Payable?
Some purchases fall below relevant thresholds, may be exempt or may qualify for relief. The correct treatment depends on the consideration, residential or commercial classification, buyer circumstances and statutory rules. Gifts involving an existing mortgage or transfers within families can have different consequences from gifts with no consideration. Never assume that “no cash payment” means “no SDLT”.
If buying in Scotland or Wales, the SDLT rules on this page do not apply; check LBTT or LTT instead.
Stamp Duty Calculator
For a current estimate, use the official HMRC Stamp Duty Land Tax calculator. Enter the purchase price, transaction date, residential or non-residential property type, whether this is an additional dwelling, first-time-buyer status and any non-resident circumstances accurately.
This page is general information for investors, not personal tax advice. Before a UK property acquisition, our property deal review methodology explains the broader purchase-cost checks, and a qualified tax adviser or conveyancer should calculate the legal tax liability.
Frequently Asked Questions
No, Stamp Duty must be paid separately and cannot be included in your mortgage.
Yes, SDLT applies to leasehold properties as well as freehold properties. The calculation is based on the purchase price of the lease premium and the annual rent.
Failure to pay SDLT on time can result in penalties and interest. It is important to ensure timely payment to avoid additional charges.
There are specific SDLT reliefs available for individuals with disabilities. It is advisable to consult with a tax advisor or solicitor to understand your eligibility for these reliefs.
Yes, SDLT rates differ for residential and commercial properties. Commercial properties have different rate bands and thresholds.
