UK Stamp Duty (SDLT) Guide — Rates, Thresholds & How to Calculate

Updated October 2026 · 5 min read

Stamp Duty Land Tax (SDLT) is a tax paid to HMRC when you purchase a property in England or Northern Ireland. Scotland has Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT) — different taxes, similar principles. SDLT is tiered: you only pay each rate on the portion of the price that falls within that band.

Standard SDLT Rates (From October 2024)

Note: The temporary SDLT relief introduced in September 2022 ended in October 2024 — the nil-rate band returned to £250,000 (from £500,000 during the relief period).

Worked Example — £400,000 Property

• First £250,000 × 0% = £0
• Remaining £150,000 × 5% = £7,500
• Total SDLT: £7,500

First-Time Buyer Relief

First-time buyers pay no SDLT on the first £425,000 (up from £300,000) and 5% on the portion from £425,001 to £625,000. Properties above £625,000 receive no relief — standard rates apply in full.

Example: First-time buyer purchasing at £500,000: £0 on first £425,000, then 5% on £75,000 = £3,750. The same purchase at standard rates would be £12,500 — a saving of £8,750.

Additional Dwelling Surcharge (Buy-to-Let / Second Home)

Purchasers buying an additional residential property (buy-to-let, second home, holiday home) pay a 3% surcharge on top of each standard rate band. On a £300,000 second home: standard £2,500 + surcharge £9,000 = £11,500 vs £2,500 for a primary home.

When Must SDLT Be Paid?

SDLT must be paid and a return filed within 14 days of completion. Your solicitor or conveyancer typically handles this automatically. Late payment incurs penalties starting at £100, plus interest.