TL;DR
Stamp Duty Land Tax (SDLT) is paid by property buyers in England and Northern Ireland on purchases above 125,000 pounds (or 300,000 pounds for first-time buyers). Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT). Additional rates apply to second homes and buy-to-let purchases. SDLT must be paid within 14 days of completion.
Last reviewed: June 2026
Stamp duty is the informal name for the tax charged on property purchases in the UK. Formally it is called Stamp Duty Land Tax (SDLT) in England and Northern Ireland, Land and Buildings Transaction Tax (LBTT) in Scotland, and Land Transaction Tax (LTT) in Wales. Each is administered separately and has its own rates and thresholds. This guide focuses primarily on SDLT in England, with a summary of LBTT and LTT for completeness.
KEY FACTS
- SDLT is paid by the buyer, not the seller.
- SDLT must be paid and a return filed within 14 days of completion.
- First-time buyers pay no SDLT on the first 300,000 pounds and 5% on the portion from 300,001 to 500,000 pounds.
- Second home buyers and buy-to-let landlords pay an additional 5 percentage points on each SDLT band from April 2025.
- SDLT is calculated on a tiered (slice) basis, not a flat rate applied to the full purchase price.
- Non-UK resident buyers pay a 2 percent SDLT surcharge on all rates.
SDLT rates in England 2026
SDLT is calculated on a tiered basis, sometimes called the slice system. Different rates apply to different portions of the purchase price, similar to how income tax bands work. The rates for standard residential purchases in England as of June 2026 are as follows:
Up to 125,000 pounds: 0 percent. From 125,001 to 250,000 pounds: 2 percent. From 250,001 to 925,000 pounds: 5 percent. From 925,001 to 1,500,000 pounds: 10 percent. Above 1,500,000 pounds: 12 percent.
On a 300,000 pound purchase: no SDLT on the first 125,000 pounds; 2 percent on the next 125,000 pounds (250,000 minus 125,000) = 2,500 pounds; 5 percent on the final 50,000 pounds (300,000 minus 250,000) = 2,500 pounds. Total SDLT: 5,000 pounds.
On a 500,000 pound purchase: nil on first 125,000 = 0; 2 percent on next 125,000 = 2,500; 5 percent on next 250,000 (from 250,001 to 500,000) = 12,500. Total SDLT: 15,000 pounds.
First-time buyer SDLT relief
First-time buyers purchasing a property worth up to 500,000 pounds receive SDLT relief. The nil-rate threshold for first-time buyers is 300,000 pounds (compared to 125,000 pounds for non-first-time buyers). A 5 percent rate applies on the portion from 300,001 to 500,000 pounds. First-time buyers purchasing a property worth more than 500,000 pounds receive no relief and pay the standard rates.
On a 400,000 pound first-time buyer purchase: nil on first 300,000 pounds = 0; 5 percent on 100,000 pounds (from 300,001 to 400,000) = 5,000 pounds. Total SDLT: 5,000 pounds, compared to 10,000 pounds for a non-first-time buyer on the same purchase.
To qualify as a first-time buyer, neither buyer (in a joint purchase) must have previously owned a residential property anywhere in the world. This includes inherited property and property owned overseas. HMRC may challenge first-time buyer relief claims at a later date and require repayment if a buyer did not qualify.
Additional SDLT for second homes and buy-to-let
Buyers who will own more than one residential property after completion pay an additional 5 percentage points on each SDLT band. This applies to second homes, buy-to-let properties, holiday homes and any other additional residential property. The surcharge was increased from 3 to 5 percentage points in October 2024.
On a 300,000 pound second property purchase: SDLT at standard rates is 5,000 pounds as above. The 5 percent surcharge applies to the entire purchase price: 5 percent x 300,000 = 15,000 pounds. Total SDLT: 20,000 pounds.
The surcharge can be reclaimed if the previous main residence is sold within three years of purchasing the new property and that new property replaces the main residence. The refund must be claimed from HMRC within 12 months of the sale of the previous main residence.
Non-UK resident surcharge
Since April 2021, buyers who are not UK residents at the time of purchase pay a 2 percent SDLT surcharge on all rates. This applies in addition to the standard rates and the second home surcharge where applicable. Residency for SDLT purposes is determined by a specific test: broadly, a buyer is UK resident if they have been present in the UK for at least 183 days in the 12 months before the purchase date.
LBTT in Scotland
Land and Buildings Transaction Tax (LBTT) applies to property purchases in Scotland and is administered by Revenue Scotland. The nil-rate threshold for residential purchases is 145,000 pounds. Rates above that are 2 percent from 145,001 to 250,000 pounds, 5 percent from 250,001 to 325,000 pounds, 10 percent from 325,001 to 750,000 pounds, and 12 percent above 750,000 pounds. First-time buyers in Scotland benefit from a first-time buyer relief raising the nil-rate band to 175,000 pounds. An Additional Dwelling Supplement of 8 percent applies to additional residential properties.
LTT in Wales
Land Transaction Tax applies in Wales and is administered by the Welsh Revenue Authority. The nil-rate threshold is 225,000 pounds for residential purchases. Rates above that are 6 percent from 225,001 to 400,000 pounds, 7.5 percent from 400,001 to 750,000 pounds, 10 percent from 750,001 to 1,500,000 pounds, and 12 percent above. A higher rate of 4 percentage points applies to additional residential properties.
When and how to pay SDLT
SDLT must be paid and a return filed with HMRC within 14 days of the completion date. In practice, the buyer's conveyancer or solicitor calculates and pays SDLT on the buyer's behalf using funds provided at or before completion. The cost of SDLT should be factored into the total funds needed on completion day alongside the deposit, legal fees and mortgage arrangement fees.
SDLT returns and payments are submitted via HMRC's online service. Late payment attracts a penalty of 100 pounds for returns up to three months late, rising to 200 pounds after that, plus interest at HMRC's current late payment rate.
Frequently asked questions
When is stamp duty paid?
SDLT must be paid within 14 days of completion. Your solicitor or conveyancer will calculate the amount and pay it to HMRC on your behalf from the funds you provide. SDLT is paid at completion, not at exchange of contracts.
Do first-time buyers pay stamp duty?
First-time buyers pay no SDLT on the first 300,000 pounds of the purchase price and 5 percent on the portion between 300,001 and 500,000 pounds. Purchases above 500,000 pounds receive no first-time buyer relief. Both buyers in a joint purchase must be genuine first-time buyers to qualify.
Is stamp duty the same in Scotland and Wales?
No. Scotland uses Land and Buildings Transaction Tax (LBTT) administered by Revenue Scotland, with different thresholds and rates. Wales uses Land Transaction Tax (LTT) administered by the Welsh Revenue Authority, also with different rates. SDLT applies only in England and Northern Ireland.
Can I avoid the second home surcharge?
The surcharge applies to all purchases where you will own more than one residential property after completion. If you are replacing your main residence, you pay the surcharge upfront but can reclaim it from HMRC within 12 months of selling your previous main home, provided the sale occurs within three years of the purchase.
