Stamp Duty Land Tax (SDLT) is a tax charged on purchases of property or land in England and Northern Ireland when the price paid is above a certain threshold. It applies to freehold and leasehold purchases, whether you’re buying outright or with a mortgage.
How much SDLT you pay depends on:
Understanding how SDLT works helps you budget for all the costs involved in buying property and avoid surprises when it’s time to complete the purchase.
Before you buy property or land, it’s important to understand when Stamp Duty Land Tax applies and how much you might need to pay. SDLT is calculated on the portion of the purchase price that falls within each rate band, not the total value in one block.
If you’re a first-time buyer, you may get relief on residential properties up to a certain value meaning you pay less or no SDLT on part of the price. If you’re buying an additional property, such as a second home or buy-to-let, you’ll usually pay a higher rate due to a surcharge.
Knowing the rules, the thresholds, and how to report and pay SDLT helps you plan ahead, budget accurately, and stay compliant when you complete your property purchase.
When you buy shares, you usually pay a tax or duty of 0.5% on the transaction. If you buy shares electronically Stamp Duty Reserve Tax (SDRT) is payable. For shares purchased using a stock transfer form, you will pay Stamp Duty if the transaction is over £1,000.
SDLT is payable on land and property transactions in England and Northern Ireland.
Property transactions in Scotland are subject to Land and Buildings Transaction Tax (LBTT).
Property transactions in Wales are subject to Land Transaction Tax (LTT).
The rates apply to the portion of the total value which falls within each band.
| Consideration (£) | Rate (%) |
|---|---|
| 0 - 125,000 | 0 |
| 125,001 - 250,000 | 2 |
| 250,001 - 925,000 | 5 |
| 925,001 - 1,500,000 | 10 |
| 1,500,001 and above | 12 |
These rates may be increased by 3% where further residential properties, costing over £40,000, are acquired prior to 30 October 2024 and by 5% after that date.
First-time buyers may be eligible for first-time buyer relief on purchases of residential property up to £500,000. The rates apply to the portion of the total value which falls within each band.
| Consideration (£) | Rate (%) |
|---|---|
| 0 - 300,000 | 0 |
| 300,001 - 500,000 | 5 |
| for purchases over 500,000 | normal rates apply |
Payable on consideration which falls in each band.
| Consideration (£) | Rate (%) |
|---|---|
| 0 - 150,000 | 0 |
| 150,001 - 250,000 | 2 |
| Over 250,000 | 5 |
Land and Buildings Transaction Tax (LBTT) is payable on land and property transactions in Scotland.
| Consideration (£) | Rate (%) |
|---|---|
| 0 - 145,000 | 0 |
| 145,001 - 250,000 | 2 |
| 250,001 - 325,000 | 5 |
| 325,001 - 750,000 | 10 |
| 750,001 and above | 12 |
The rates apply to the portion of the total value which falls within each band.
Residential rates may be increased by 6% where further residential properties, costing over £40,000, are acquired prior to 5 December 2024 and by 8% after that date. Where the effective date of a land transaction is on or after 5 December 2024 and the contract for the land transaction was entered into on or before 4 December 2024, the tax rate of 6% will apply.
First-time Buyer relief raises the zero rate tax threshold for first-time buyers from £145,000 to £175,000.
| Consideration (£) | Rate (%) |
|---|---|
| 0 - 150,000 | 0 |
| 150,001 - 250,000 | 1 |
| Over 250,000 | 5 |
The rates apply to the portion of the total value which falls within each band.
Land Transaction Tax (LTT) is payable on land and property transactions in Wales.
| Consideration (£) | Rate (%) |
|---|---|
| 0 - 225,000 | 0 |
| 225,001 - 400,000 | 6 |
| 400,001 - 750,000 | 7.5 |
| 750,001 - 1,500,000 | 10 |
| 1,500,000 and above | 12 |
The rates apply to the portion of the total value which falls within each band.
Residential rates may be increased where further residential properties costing over £40,000 or over are acquired.
Higher residential rates may apply when you already own one or more residential properties. The following rates apply to acquisitions on or after 11 December 2024. For contracts exchanged prior to that date the percentages are reduced by 1%.
| Consideration (£) | Rate (%) |
|---|---|
| 0 - 180,000 | 5 |
| 180,001 - 250,000 | 8.5 |
| 250,001 - 400,000 | 10 |
| 400,001 - 750,000 | 12.5 |
| 750,001 - 1,500,000 | 15 |
| 1,500,000 and above | 17 |
The rates apply to the portion of the total value which falls within each band.
| Consideration (£) | Rate (%) |
|---|---|
| 0 - 225,000 | 0 |
| 225,001 - 250,000 | 1 |
| 250,001 - 1,000,000 | 5 |
| Over 1,000,000 | 6 |
The rates apply to the portion of the total value which falls within each band.
Anyone buying property or land in England or Northern Ireland must pay Stamp Duty Land Tax if the purchase price is above the SDLT threshold. This includes:
Homebuyers:
If you’re buying a residential property whether it’s your first home or a main residence you may need to pay SDLT depending on the price and whether you qualify for first-time buyer relief.
Second Home or Buy-to-Let Buyers:
If you’re buying an additional property, such as a holiday home or buy-to-let, you’ll usually pay the standard SDLT rates plus a 3% surcharge on top.
Businesses and Investors:
Companies or investors buying residential or non-residential property must also pay SDLT. Higher rates and extra charges may apply if the company owns multiple properties or if the property value is over certain thresholds.
Leaseholders:
You may also have to pay SDLT when taking on a new lease or extending an existing lease if the premium or lease value is above the threshold.
Understanding who pays SDLT and when helps buyers budget properly and avoid unexpected costs when completing a purchase.
Once you buy property or land that’s liable for SDLT, you’ll need to file an SDLT return and pay any tax due within 14 days of completing the purchase.
How It Works:
Your solicitor or conveyancer usually handles this for you. They’ll work out how much SDLT you owe, submit the return to HMRC, and arrange payment on your behalf but you’re still legally responsible for making sure it’s paid on time.
How It’s Calculated:
SDLT is calculated using bands you pay different rates on portions of the property price that fall within each band. If you’re a first-time buyer or buying an additional property, different rates and surcharges may apply.
Keep Records:
Always keep a copy of your SDLT return and payment confirmation. You’ll need this if you ever sell the property or for tax purposes in the future.
Penalties:
Missing the 14-day deadline can lead to interest charges and penalties, so it’s important to work closely with your solicitor and budget for SDLT in your total buying costs.
What is Stamp Duty Land Tax (SDLT)?
Stamp Duty Land Tax is a tax you pay when you buy property or land in England or Northern Ireland above a certain price threshold.
Who has to pay Stamp Duty Land Tax?
Anyone buying residential or non-residential property over the threshold must pay SDLT. This includes homebuyers, landlords, second home buyers, companies, and investors.
How is Stamp Duty Land Tax calculated?
SDLT is worked out in bands you pay different rates on parts of the property price that fall within each band, not a flat rate on the whole price.
Do first-time buyers pay Stamp Duty Land Tax?
First-time buyers may qualify for SDLT relief, paying no tax up to a certain property value and reduced rates above that. It helps lower costs when buying your first home.
What is the additional property surcharge?
If you’re buying a second home or buy-to-let, you’ll usually pay an extra 3% surcharge on top of the standard SDLT rates.
When do you have to pay Stamp Duty Land Tax?
SDLT must be paid to HMRC within 14 days of completing the purchase. Your solicitor usually handles this for you.
Do leaseholders pay SDLT?
Yes you may have to pay SDLT if you buy a new leasehold property or extend a lease and the premium or lease value is above the SDLT threshold.
What happens if I don’t pay Stamp Duty Land Tax on time?
If you miss the 14-day deadline, HMRC can charge interest and penalties, so it’s important to pay on time and keep all paperwork safe.
Can I claim capital allowances on rented property?
If you own commercial property, you can claim on qualifying fixtures and integral features inside the building. Residential landlords have more limited options.
What happens if I sell an asset I claimed for?
When you sell or dispose of an asset, you may need to make a balancing adjustment – adding or subtracting an amount from your tax calculation to reflect the sale value.
Your trusted source for the latest tax changes, finance news, and expert advice tailored to businesses.
https://a-wise.co.uk/wp-content/uploads/2025/08/Accounting-Wise-tax-ebay-stores-and-the-HMRC.webp 423 1600 Daniel Greenaway https://a-wise.co.uk/wp-content/uploads/2024/11/Accounting-Wise-Logo-Uk-Online-Accountant.webp Daniel Greenaway2025-09-26 08:31:142025-09-24 08:15:51Tax, eBay Stores and the HMRC
https://a-wise.co.uk/wp-content/uploads/2025/09/Accounting-Wise-key-accounting-dates-for-October-2025.webp 423 1600 Daniel Greenaway https://a-wise.co.uk/wp-content/uploads/2024/11/Accounting-Wise-Logo-Uk-Online-Accountant.webp Daniel Greenaway2025-09-24 08:30:252025-09-24 09:31:16Key Accounting Dates for October 2025
https://a-wise.co.uk/wp-content/uploads/2025/08/Accounting-Wise-How-to-File-Landlord-Self-Assessment-in-the-UK.webp 423 1600 Daniel Greenaway https://a-wise.co.uk/wp-content/uploads/2024/11/Accounting-Wise-Logo-Uk-Online-Accountant.webp Daniel Greenaway2025-09-22 08:11:412025-09-22 08:03:27How to File Landlord Self-Assessment in the UK1 Choose Your Package
Select the accounting services that best suit your needs. Choose from our ready-made packages or build your own to see exactly how much you’ll be paying each month.
2 Sign up with Us
Once you’ve chosen your service level, just send over a few details using our quick sign-up form or give us a call to get started.
3 You’re ready to go
That’s it! We’ll get your accounting services set up, contact your previous accountant if needed, and begin the authorisation process with HMRC.
Free company formation with our Pre-Built or Bespoke Accounting packages!
All official documents provided
Online Hub to manage your company
London Registered office Address
Your own incorporated limited company
