Understanding UK Stamp Duty Land Tax (SDLT)
Stamp Duty Land Tax (SDLT) is a tax you pay when buying property or land in England and Northern Ireland. The amount you pay depends on the property price and whether you're a first-time buyer, moving home, or buying an additional property.
First-Time Buyer Relief (April 2025 Rates)
First-time buyers get special relief: you pay no stamp duty on properties up to £300,000, and 5% on the portion between £300,000 and £500,000. If the property costs more than £500,000, you lose the relief and pay standard rates on the full amount. This can save first-time buyers up to £10,000! Note: These thresholds were reduced from £425,000 and £625,000 respectively on 1 April 2025.
Additional Property Surcharge (April 2025 Rates)
Buying a second home or buy-to-let property? You'll pay an extra 5% on top of the standard rates across all bands. This applies from the first pound, meaning you pay 5% on the first £125,000 (instead of 0%). The surcharge increased from 3% to 5% on 1 April 2025, making additional properties significantly more expensive.
When Do I Need to Pay Stamp Duty?
You must file your SDLT return and pay the tax within 14 days of completion (when the property officially becomes yours). Your solicitor usually handles this for you, but make sure you have the funds ready. Missing the deadline means penalties and interest charges, so don't leave it to the last minute.
What About Scotland and Wales?
Scotland has Land and Buildings Transaction Tax (LBTT) with different rates and thresholds. Wales has Land Transaction Tax (LTT) with its own rates. If you're buying in Scotland or Wales, you'll need a different calculator. This tool is for England and Northern Ireland only.