Quick Answer
In England and Northern Ireland, **Stamp Duty Land Tax (SDLT)** is a progressive tax paid when purchasing residential property. For standard home movers, no tax is paid on the first **£250,000**, with rates of **5% to 12%** applying to portions above that. **First-time buyers** pay **0%** SDLT on properties up to **£425,000**, and a reduced rate of **5%** on the portion between £425,001 and £625,000. If the purchase price exceeds £625,000, first-time buyers receive no relief and pay standard rates.
Stamp Duty Land Tax (SDLT) is a tax levied by the UK government on the purchase of land and properties valued above a specific threshold in England and Northern Ireland. The tax is progressive, meaning you pay different percentages on different slices of the purchase price rather than a single flat rate on the entire amount.
*Note: If you are purchasing property in Scotland, you will pay Land and Buildings Transaction Tax (LBTT). In Wales, you will pay Land Transaction Tax (LTT). This guide focuses specifically on SDLT.*
Standard SDLT Rates & Bands (Moving Home)
For individuals who already own a home and are moving to a new primary residence, the following SDLT bands apply:
| Property Price Band | SDLT Rate on This Band |
|---|---|
| Up to £250,000 | 0% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Example Calculation: Standard Home Mover
Let's say you are selling your current home and buying a new house for £350,000.
- First £250,000: Taxed at 0% = £0
- Next £100,000 (portion from £250,001 to £350,000): Taxed at 5% = £5,000
- Total SDLT Bill: £0 + £5,000 = £5,000.
First-Time Buyer Relief
To help first-time buyers get onto the property ladder, the UK government offers a generous SDLT discount. If you (and anyone you are buying with) have never owned a home anywhere else in the world, you qualify for the following:
- Up to £425,000: You pay 0% SDLT.
- £425,001 to £625,000: You pay 5% on the portion of the price above £425,000.
- Over £625,000: You do not qualify for any first-time buyer relief. You must pay the standard SDLT rates on the entire price.
Example Calculation: First-Time Buyer
Let's look at how much you save as a first-time buyer under two different scenarios:
Scenario A: Buying a flat for £350,000
- Since the price is under £425,000, you pay £0 SDLT (saving £5,000 compared to a standard home mover).
Scenario B: Buying a house for £500,000
- First £425,000: Taxed at 0% = £0
- Remaining £75,000 (£425,001 to £500,000): Taxed at 5% = £3,750
- Total SDLT Bill: £0 + £3,750 = £3,750 (saving £8,750 compared to the standard rate of £12,500).
Additional Property Surcharge (Second Homes & Buy-to-Let)
If you are purchasing an additional residential property—such as a holiday home, buy-to-let investment, or second residence—you must pay a 3% surcharge on top of the standard SDLT rates. This surcharge applies to the entire purchase price if it exceeds £40,000.
For example, on a £350,000 second home, the rates would be 3% on the first £250,000 (£7,500) and 8% (5% standard + 3% surcharge) on the remaining £100,000 (£8,000), resulting in a total SDLT bill of £15,500.
How to Pay Stamp Duty
You have 14 days from the date of completion (the day you get the keys) to file an SDLT return and pay any tax due to HMRC. Typically, your solicitor or conveyancer will handle this process on your behalf, calculating the tax, collecting the funds from you prior to completion, and submitting it to HMRC on the completion day.
Try Our UK Mortgage Calculator
Failing to account for Stamp Duty is one of the most common mistakes UK home buyers make, which can lead to unexpected cash shortfalls at closing.
Use our UK Mortgage Calculator to estimate your monthly mortgage payments and get a detailed breakdown of your Stamp Duty Land Tax liability based on your buyer status (first-time buyer, home mover, or additional property buyer).