How Much Stamp Duty Land Tax (SDLT) Will You Pay?
Stamp Duty Land Tax (SDLT) is a progressive marginal tax charged on residential land and property transactions in England and Northern Ireland. For a standard home mover purchasing a property valued at £450,000, the total SDLT owed is exactly £10,000 (an effective tax rate of 2.22%), calculated as 0% on the first £250,000 and 5% on the remaining £200,000.
If purchased by a First-Time Buyer, the SDLT drops to just £1,250 (saving £8,750) thanks to the £425,000 nil-rate threshold. However, if purchased as a Buy-to-Let or second home, the 5% surcharge increases the tax to £32,500 (an effective rate of 7.22%).
UK SDLT Rates & Buyer Comparison Tables
Table 1: SDLT Payable Across Property Values by Buyer Category (2025/2026)
| Property Price | First-Time Buyer | Standard Home Mover | Buy-to-Let / 2nd Home (+5%) |
|---|---|---|---|
| £250,000 | £0 (0.00%) | £0 (0.00%) | £12,500 (5.00%) |
| £350,000 | £0 (0.00%) | £5,000 (1.43%) | £22,500 (6.43%) |
| £500,000 | £3,750 (0.75%) | £12,500 (2.50%) | £37,500 (7.50%) |
| £750,000 | £25,000 (3.33%)* | £25,000 (3.33%) | £62,500 (8.33%) |
| £1,000,000 | £41,250 (4.13%) | £41,250 (4.13%) | £91,250 (9.13%) |
*First-time buyer relief is capped on properties up to £625,000. Purchases above £625k revert to standard home mover rates.
Table 2: Progressive Marginal SDLT Rate Bands (England & Northern Ireland)
| Tax Band Portion | Standard Rate | Additional Property Rate (+5%) | Non-UK Resident (+2%) |
|---|---|---|---|
| £0 to £250,000 | 0% | 5% | 2% |
| £250,001 to £925,000 | 5% | 10% | 7% |
| £925,001 to £1,500,000 | 10% | 15% | 12% |
| Over £1,500,000 | 12% | 17% | 14% |
Frequently Asked Questions (FAQs)
How is Stamp Duty Land Tax (SDLT) calculated in the UK?
SDLT is a progressive marginal tax. You only pay the specific tax rate on the portion of the property price falling within each tax band, rather than paying a single flat percentage on the entire purchase price.
What are the current residential SDLT bands for home movers in England and Northern Ireland?
Standard residential rates: £0 to £250,000 (0%), £250,001 to £925,000 (5%), £925,001 to £1,500,000 (10%), and over £1,500,000 (12%).
How does First-Time Buyer Relief work for SDLT?
First-time buyers pay 0% SDLT on properties up to £425,000 and 5% on the portion between £425,001 and £625,000. If the purchase price exceeds £625,000, no first-time buyer relief applies and standard rates apply to the entire price.
What is the surcharge for purchasing a second home or buy-to-let property?
Purchasing an additional residential property (second home or buy-to-let) valued at £40,000 or more incurs a 5% SDLT surcharge across all bands (e.g. 5% on £0-£250k, 10% on £250k-£925k).
Do non-UK residents pay an extra stamp duty surcharge?
Yes. Non-UK residents purchasing residential property in England or Northern Ireland pay a 2% surcharge on top of standard or additional dwelling rates.
Within how many days must SDLT be paid to HMRC after property completion?
You must submit an SDLT return and pay any tax due to HMRC within 14 days of the completion date of your property purchase (usually handled directly by your conveyancer or solicitor).
Can I get a refund on the 5% additional property surcharge if I sell my previous main residence?
Yes. If you buy a new main home before selling your old one (triggering the 5% surcharge), you can apply for a full refund of the 5% surcharge if you sell your previous main home within 36 months.
Does SDLT apply to Scotland and Wales?
No. SDLT applies only in England and Northern Ireland. Scotland levies the Land and Buildings Transaction Tax (LBTT), while Wales levies the Land Transaction Tax (LTT), each with their own separate progressive tax bands.