What Is Stamp Duty (SDLT)?

Stamp Duty Land Tax (SDLT) is a tax charged on property purchases in England and Northern Ireland. It is paid to HMRC and must be settled within 14 days of completion. Your solicitor typically handles the SDLT return and payment as part of the completion process.

SDLT is calculated on a tiered basis - like income tax, you only pay each rate on the portion of the price that falls within each band, not on the full purchase price. A £300,000 property does not mean you pay 5% on £300,000. You pay 0% on the first £250,000 and 5% only on the £50,000 above the threshold.

Scotland and Wales have their own property taxes: Land and Buildings Transaction Tax (LBTT) in Scotland and Land Transaction Tax (LTT) in Wales. This guide covers England and Northern Ireland only.

SDLT is a tiered tax - you only pay each rate on the portion within that band. Due within 14 days of completion. First-time buyers currently pay 0% up to £425,000 - but this threshold dropped to £300,000 from 1 April 2025. First-time buyers purchasing between £300K-£425K who completed before 31 March 2025 saved up to £6,250.

April 2025 Threshold Change - Now in Effect

From 1 April 2025, SDLT thresholds reverted to pre-2022 levels. For first-time buyers: the nil-rate threshold dropped from £425,000 to £300,000. For all buyers: the nil-rate threshold dropped from £250,000 to £125,000. Use the calculator below with the correct completion date for accurate figures.

Free SDLT Calculator - England and Northern Ireland

Stamp Duty Calculator
England and Northern Ireland only. Accurate for 2025.
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Current SDLT Rates - England and Northern Ireland

Standard Rates (Home Movers) - Before April 2025

Purchase Price BandSDLT RateTax on This Band
Up to £250,0000%£0
£250,001 to £925,0005%Up to £33,750
£925,001 to £1,500,00010%Up to £57,500
Above £1,500,00012%12% on excess

First-Time Buyer Rates - Before April 2025 (Until 31 March 2025)

Purchase Price BandFTB SDLT RateNotes
Up to £425,0000%No stamp duty - full nil-rate threshold
£425,001 to £625,0005%5% only on the portion above £425K
Above £625,000Standard ratesFTB relief does not apply

All Rates After 1 April 2025

Buyer TypeNil-Rate ThresholdChange from Jan 2025
Standard / Home Mover£125,000Down from £250,000
First-Time Buyer£300,000Down from £425,000
FTB upper limit£500,000Down from £625,000
Additional property surcharge+3% all bandsUnchanged

Rates accurate as of January 2025. Always verify with HMRC (gov.uk/stamp-duty-land-tax) before completing a purchase.

Worked Examples - What You Would Pay

ScenarioProperty PriceSDLT (before Apr 25)SDLT (from Apr 25)Saving
FTB buying £300K£300,000£0£0£0
FTB buying £350K£350,000£0£2,500£2,500
FTB buying £425K£425,000£0£6,250£6,250
Home mover £250K£250,000£0£2,500£2,500
Home mover £350K£350,000£5,000£10,000£5,000
Home mover £500K£500,000£12,500£17,500£5,000
BTL investor £250K£250,000£7,500£10,000£2,500

FTB = first-time buyer. BTL figure includes 3% surcharge.

The 3% Additional Dwellings Surcharge

If you already own a residential property and are buying an additional one - whether a buy to let investment, a second home, or a holiday home - you pay a 3% surcharge on top of standard SDLT rates across all bands. This applies even if the existing property is abroad.

The surcharge does not apply if you are replacing your main residence. If you buy a new main residence before selling the old one, the surcharge applies at purchase but can be refunded within 12 months if you sell the original property within that timeframe.

Scotland and Wales - Different Systems

  • Scotland - Land and Buildings Transaction Tax (LBTT): Nil-rate threshold £145,000 for standard purchases, £175,000 for first-time buyers. Additional Dwellings Supplement (ADS) applies at 6% for additional properties.
  • Wales - Land Transaction Tax (LTT): Nil-rate threshold £225,000. Higher Rates surcharge of 4% for additional residential properties.

If buying in Scotland or Wales, use calculators from Revenue Scotland (revenue.scot) or the Welsh Revenue Authority (gov.wales/land-transaction-tax) respectively.

Frequently Asked Questions

Not directly - SDLT must be paid from your own funds at completion. However, some buyers increase their mortgage borrowing to free up savings that cover the stamp duty. For example: instead of borrowing £200,000 and paying £5,000 SDLT from savings, you borrow £205,000 and use the extra for SDLT. This increases your loan and monthly payments, and the additional borrowing must pass affordability checks.
Yes - but with an important option. You can choose to either pay SDLT on just the share you're buying now, or elect to pay SDLT on the full market value upfront (meaning no SDLT when you staircase to 100% later). For first-time buyers planning to staircase, paying on the full value upfront can be tax-efficient. Your solicitor will advise which option suits your circumstances.
Yes - if you paid the 3% surcharge because you bought a new main residence before selling your previous one, you can claim a refund if you sell the old property within 36 months of completing the new purchase. The refund must be claimed from HMRC within 12 months of selling the old property. Your solicitor can assist with the refund claim.
Yes - since April 2021, non-UK resident purchasers pay a 2% surcharge on top of standard SDLT rates. This applies if neither you nor a joint purchaser has been UK resident for the 12 months before the purchase. For non-resident BTL investors: standard SDLT + 3% surcharge + 2% non-resident surcharge = potentially 5% extra on all bands. Specialist advice is recommended.
Important: SDLT rates and thresholds can change. Always verify with HMRC at gov.uk/stamp-duty-land-tax before completing a purchase. This article is educational - not tax or legal advice. Figures accurate as of January 2025.

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