Stamp Duty Land Tax (SDLT) is the tax on buying land and property in England and Northern Ireland. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax instead — different taxes, different bands, and nothing in this guide applies to them. SDLT is charged in slices, like income tax: each portion of the price falls into a band and is taxed at that band’s rate, so the effective rate is always lower than the top rate. This guide states the rates in force from 1 April 2025, explains first-time buyer relief and the higher-rates surcharge for additional properties, covers the non-resident surcharge, and works through examples at the prices buyers actually pay. It is a general guide, not conveyancing advice: the return is filed by your conveyancer, and the figures should be confirmed against the HMRC calculator for your transaction.

What SDLT is, and which purchases it covers

SDLT is payable by the buyer on the purchase of a freehold property, a leasehold property (on the premium and, in some cases, the rent), and other land transactions in England and Northern Ireland, where the chargeable consideration exceeds the relevant threshold. The tax is self-assessed: the buyer, usually through a conveyancer, files a land transaction return and pays the tax within 14 days of the effective date, normally completion. The Land Registry will not register the purchase without the SDLT certificate, so the tax is not a detail that can be deferred. Chattels — furniture and movable items genuinely sold separately — are not chargeable, and a price must be apportioned fairly between the property and any chattels included in the sale.

SDLT applies to residential and non-residential property under different rate tables, and to mixed-use property under the non-residential table. This guide covers residential purchases, which is where first-time buyer relief and the higher-rates surcharge live. Non-residential and mixed-use rates, the lease NPV calculation, and the reliefs that survive are noted where they affect a residential buyer; the companion sections on the hub page cover leasehold and reliefs in more detail.

The standard rates, and how the slices work

From 1 April 2025, the standard residential rates are: 0% on the first £125,000; 2% on the portion from £125,001 to £250,000; 5% on £250,001 to £925,000; 10% on £925,001 to £1,500,000; and 12% on the portion above £1,500,000. The slice method is the point most often misunderstood: a £300,000 purchase does not pay 5% on £300,000. It pays 0% on the first £125,000, 2% on the next £125,000 (£2,500), and 5% on the remaining £50,000 (£2,500) — £5,000 in total, an effective rate of 1.67%. A £500,000 purchase pays £15,000 (0 + £2,500 + £12,500), an effective rate of 3%.

The thresholds were lower before 1 April 2025 — the nil-rate band was £250,000 and the first-time buyer band ran to £425,000 — so any figure quoted from a purchase completed before that date, or any online example that has not been updated, will understate the tax. Check the effective date of your transaction against the rates in force on that date; the calculator on this site uses the current table.

First-time buyer relief: who qualifies, and what it saves

First-time buyer relief applies where every buyer is a first-time buyer — someone who has never owned a freehold or leasehold interest in a dwelling anywhere in the world — and the property will be the buyer’s only or main residence, purchased for £500,000 or less. The relief gives 0% on the first £300,000 and 5% on the portion from £300,001 to £500,000. A £300,000 first purchase pays nothing; a £400,000 first purchase pays £5,000; a £500,000 first purchase pays £10,000. Above £500,000, no relief is available at all, and the standard rates apply to the whole price — a £510,000 first purchase pays £15,500 under the standard table, not £10,000 plus a little, because the relief is lost entirely, not tapered.

The cliff at £500,000 is the trap in the relief. A purchase price of £499,000 costs a first-time buyer £9,950; a price of £501,000 costs £15,050 — £5,100 more tax for £2,000 more price. Buyers negotiating near the threshold should know the cliff exists and price their offers accordingly, and should confirm their first-time-buyer status carefully: a previous inherited interest in a property, a former buy-to-let, or a property owned overseas can all disqualify, and the definition is applied strictly. Joint buyers must all be first-time buyers; if one buyer has owned before, the relief is unavailable to the purchase.

The higher rates: additional properties, and the 5% surcharge

Since 31 October 2024, purchases of additional residential properties — second homes and buy-to-let properties — attract a surcharge of 5 percentage points on top of the standard rates on each slice, with no nil-rate band benefit on the surcharge element in the way the standard table allows. The surcharge applies where the buyer already owns a dwelling (or an interest worth at least £40,000 in one) and the new property is not replacing a main residence. A £300,000 additional property costs £20,000: the standard £5,000 plus a 5% surcharge on the full price, £15,000. The surcharge is the expensive part of the transaction, and it is what makes the second-home calculation in the companion guide linked at the end worth reading in full before committing.

Replacement of a main residence is the principal escape: a buyer who sells the previous main residence before, or within the permitted period after, buying the new one is not charged the surcharge, and a buyer who pays it and then sells the previous main residence within the permitted window (generally three years, with the claim made within three months of the sale) can reclaim it. The rules for the replacement exception are detailed — the timing of the sale, the buyer’s residence in the new property, and the treatment of properties owned by spouses all matter — and the reclaim has a deadline that is easy to miss. This section states the surcharge’s existence and scale; the detailed treatment, including the Scotland and Wales equivalents, is in the companion guide.

Non-resident surcharge, and other points

Non-UK-resident buyers pay a further 2% surcharge on top of the standard rates and any higher-rates surcharge, subject to a residence test based on days present in the UK in a defined period. The surcharges stack: a non-resident buying a £300,000 additional property pays the standard £5,000, the 5% higher-rates surcharge (£15,000), and the 2% non-resident surcharge (£6,000) — £26,000 in total. Companies buying residential property pay the higher rates on all purchases and face the annual tax on enveloped dwellings (ATED) for high-value holdings, a separate tax outside this guide. First-time buyer relief is not available to non-resident buyers who do not meet the residence conditions.

Two final points. The consideration for SDLT is the price plus anything given in exchange — fixtures that are part of the property, works done as part of the deal, and the assumption of debts can all form part of the chargeable consideration, and HMRC can challenge an apportionment that understates the property element. And SDLT is charged on the transaction, not the buyer’s circumstances in the abstract: a buyer who qualifies for a relief on one purchase may not on the next, and a purchase that looks straightforward can acquire a surcharge from a property interest the buyer had forgotten. Tell the conveyancer about every property interest, everywhere, before exchange.

Frequently asked questions

How much SDLT do I pay on a £300,000 house?

As a standard residential purchase: £5,000 — 0% on the first £125,000, 2% on the next £125,000 (£2,500), 5% on the remaining £50,000 (£2,500). A first-time buyer pays £0 on £300,000; an additional-property buyer pays £20,000 with the 5% surcharge.

What is first-time buyer relief for SDLT?

First-time buyers pay 0% on the first £300,000 and 5% on £300,001–£500,000, for a property that will be their only or main residence. No relief is available above £500,000 — the standard rates then apply to the whole price. All joint buyers must be first-time buyers.

What is the SDLT higher-rates surcharge?

An extra 5% on top of the standard rates for additional residential properties (second homes, buy-to-let), in force since 31 October 2024. A £300,000 additional property costs £20,000 in SDLT. Replacing a main residence is excepted, and a surcharge paid can be reclaimed if the previous main residence is sold within the permitted window.

Does SDLT apply in Scotland and Wales?

No. Scotland charges Land and Buildings Transaction Tax (LBTT) and Wales charges Land Transaction Tax (LTT), with their own bands and reliefs. This guide covers England and Northern Ireland only.

What is the SDLT filing deadline?

The land transaction return and payment are due within 14 days of the effective date, usually completion. Late filing attracts penalties and interest. Your conveyancer normally files the return; the SDLT certificate is needed to register the purchase.

Do non-residents pay extra SDLT?

Yes — a 2% surcharge on top of the standard rates (and any higher-rates surcharge), subject to a UK residence test. A non-resident buying a £300,000 additional property pays £26,000 in total.