Stamp Duty Explained
How Stamp Duty Land Tax works, current rates, first-time buyer relief, and how to calculate what you owe.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax you pay when buying property or land in England and Northern Ireland above a certain price. Scotland has LBTT (Land and Buildings Transaction Tax) and Wales has LTT (Land Transaction Tax), which work similarly but with different rates and thresholds.
Current rates (2025/26)
For residential properties: 0% on the first £250,000, 5% on £250,001–£925,000, 10% on £925,001–£1,500,000, and 12% above £1,500,000. These are marginal rates — you only pay the higher rate on the portion above each threshold, not on the whole price.
First-time buyer relief
First-time buyers pay 0% on the first £425,000 and 5% on the portion between £425,001 and £625,000. If the property costs more than £625,000, you pay standard rates on the full amount — the relief disappears entirely. Both buyers must be first-time buyers to qualify.
Additional property surcharge
Buying a second home or buy-to-let? You pay an extra 5% on top of standard rates (increased from 3% in October 2024). This applies to the whole purchase price, not just the portion above thresholds. Companies buying residential property worth £500,000+ pay a flat 17%.
When and how to pay
Your solicitor usually handles the SDLT return and payment. It must be filed and paid within 14 days of completion. Late filing incurs automatic penalties and interest. The tax is calculated on the actual price paid, including any fixtures and fittings if they are above market value.
Exemptions and reliefs
Transfers between spouses/civil partners on separation are exempt. Properties below the nil-rate threshold (£250,000 standard, £425,000 first-time buyers) owe no duty. Shared ownership buyers can choose to pay on the initial share or the full market value — paying on the full value avoids a second SDLT bill when staircasing.