Work out exactly how much SDLT you will owe on your next property purchase. Updated with the latest 2025/26 rates and thresholds for England and Northern Ireland.
Residential property purchase rates for England and Northern Ireland, effective from 1 April 2025.
Moving home or not a first-time buyer
Properties up to £500,000
If the purchase price exceeds £500,000, standard rates apply to the full amount.
Added on top of applicable rates
Surcharges apply to the entire purchase price across all bands. Both surcharges can stack.
Common questions about SDLT when buying property in England and Northern Ireland.
A tax on property purchases in England and Northern Ireland, paid to HMRC.
Stamp Duty Land Tax (SDLT) is a tax you pay when you buy property or land over a certain price in England and Northern Ireland. It works on a progressive, banded system — you pay different rates on different portions of the purchase price, not a single rate on the whole amount.
Scotland has its own equivalent called Land and Buildings Transaction Tax (LBTT), while Wales uses Land Transaction Tax (LTT). SDLT is paid to HMRC and is typically due within 14 days of completing your purchase.
Rates reverted to pre-2022 levels from 1 April 2025, with a nil-rate band of £125,000.
From 1 April 2025, the SDLT thresholds reverted to their pre-September 2022 levels. Here are the current standard residential rates for England and Northern Ireland:
| Purchase price band | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
First-time buyers pay 0% on the first £300,000 and 5% on £300,001 to £500,000, provided the property costs £500,000 or less.
Relief is available on properties up to £500,000, with no tax on the first £300,000.
First-time buyers benefit from stamp duty relief on properties costing up to £500,000 in England and Northern Ireland. You pay no SDLT on the first £300,000 and 5% on the portion between £300,001 and £500,000.
If the property costs more than £500,000, the relief is lost entirely and standard rates apply to the full purchase price.
To qualify, you must never have owned or part-owned a property anywhere in the world — including inherited property, even if you sold it immediately and never lived in it.
A 5% surcharge applies on top of standard rates for second homes and buy-to-lets.
If you are buying an additional residential property — such as a buy-to-let, second home, or holiday let — you must pay a 5% surcharge on top of the standard SDLT rates across every band. This surcharge was increased from 3% to 5% on 31 October 2024.
| Purchase price band | Standard rate | Additional property |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 – £250,000 | 2% | 7% |
| £250,001 – £925,000 | 5% | 10% |
| £925,001 – £1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
On a £300,000 additional property, you would pay £20,000 in SDLT compared to just £5,000 as a standard buyer. The surcharge does not apply to properties purchased for less than £40,000.
Yes — if you sell your previous main home within 36 months of buying a new one.
If you buy a new main residence before selling your existing one, you will initially pay the higher rate. You can claim a refund of the surcharge if you sell your previous main home within 36 months of the new purchase.
The refund claim must be made within 12 months of the sale of your old property, or within 12 months of the filing date for the new purchase — whichever comes later.
This does not apply to genuine additional properties such as buy-to-lets or second homes.
Yes — an extra 2% surcharge on top of all other applicable SDLT rates.
Non-UK residents buying residential property in England and Northern Ireland pay a 2% surcharge on top of all applicable SDLT rates. This stacks with the additional property surcharge — so an overseas investor buying a second property would pay standard rates plus 5% (additional property) plus 2% (non-UK resident), for a combined 7% surcharge on top of standard rates.
You are considered non-UK resident if you spent fewer than 183 days in the UK in the 12 months before your purchase. If buying jointly, the surcharge applies if any one of the buyers is non-UK resident.
Within 14 days of completion — your solicitor usually handles this.
You must file an SDLT return and pay any stamp duty owed within 14 days of completion in England and Northern Ireland. In Scotland and Wales, the deadline is 30 days.
Your solicitor or conveyancer will typically handle this on your behalf, and most will request the funds before completion. Late filing or payment can result in penalties and interest charges from HMRC.
This applies whether you are purchasing as an individual or through a limited company.
Technically yes, but it increases your borrowing costs significantly over time.
You can increase your mortgage to cover stamp duty by borrowing more and using the freed-up deposit funds to pay SDLT. However, over a 25-year term at 5%, that extra borrowing will cost roughly 80% more in interest.
It can also push your loan-to-value ratio into a less competitive bracket. For buy-to-let investors, a larger mortgage may mean your rental income no longer meets lender coverage requirements.
Where possible, paying stamp duty from savings is the more cost-effective approach.
Yes — Scotland uses LBTT and Wales uses LTT, each with different rates and thresholds.
Yes. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT), each with their own thresholds and rates.
| England & NI | Scotland | Wales | |
|---|---|---|---|
| Tax name | SDLT | LBTT | LTT |
| Additional property surcharge | 5% | 8% | 5% |
| Non-UK resident surcharge | 2% | None | None |
| First-time buyer relief | Yes | Yes | No |
| Payment deadline | 14 days | 30 days | 30 days |
Our calculator covers SDLT for England and Northern Ireland, as well as LTT for Wales — use the country toggle to switch between them.
Companies always pay the additional property surcharge on residential property.
When purchasing residential property through a limited company, the additional property surcharge always applies — regardless of whether the company already owns other properties. This means you pay an extra 5% on top of standard rates from the first pound.
Company purchases can benefit from different treatment on mixed-use or commercial properties, and the rules around portfolio structuring can be nuanced. The filing obligations and payment deadlines are the same as for individual purchasers.
Consult a property tax specialist to find the most efficient structure for your investments.
Whether you're buying your first home, expanding a portfolio, or investing from overseas — here's everything you need to know about stamp duty in 2025/26.
Stamp Duty Land Tax (SDLT) is a tax you pay when you buy property or land in England and Northern Ireland above a certain price. Scotland has its own equivalent called Land and Buildings Transaction Tax (LBTT), while Wales uses Land Transaction Tax (LTT). Throughout this guide we use “stamp duty” as a catch-all term, but the rates and thresholds differ in each nation.
SDLT operates on a progressive, banded system — similar to income tax. Rather than paying a single rate on the entire purchase price, you pay different rates on different portions of the price. Only the slice that falls within each band is taxed at that band's rate, so moving into a higher band doesn't increase the tax on the lower portions.
Despite the progressive structure, stamp duty can still be a significant cost. On an average UK property it typically runs into thousands of pounds — and for investors purchasing additional properties, the 5% surcharge can add tens of thousands to the bill. In 2024 alone, homebuyers in England and Northern Ireland spent more than £10 billion on stamp duty.
First-time buyers in England and Northern Ireland benefit from significant stamp duty relief. You pay no SDLT on the first £300,000 of a property, and just 5% on the portion between £300,001 and £500,000.
However, there are important conditions. The relief only applies if the property you're purchasing costs £500,000 or less — if it costs even a penny more, you lose the relief entirely and pay standard rates on the full amount. You also won't qualify if you've ever owned, or part-owned, a property anywhere in the world, including inherited property that you sold immediately and never lived in.
If you're purchasing a property in addition to one you already own — whether as a buy-to-let investment, a second home, or another addition to your portfolio — you'll pay a higher rate of stamp duty. In England and Northern Ireland, this means an extra 5 percentage points on top of every band.
This surcharge was increased from 3% to 5% on 31 October 2024 as part of the Autumn Budget, representing a significant uplift in acquisition costs for property investors. The surcharge applies across the entire purchase price, including the portion that would otherwise fall within the nil-rate band.
For investors, the additional property surcharge is typically one of the largest upfront costs when acquiring a new rental property. It's essential to factor this into your yield calculations and cash-flow projections from the outset.
The surcharge applies across UK nations at varying rates: 5% in England, Northern Ireland, and Wales, and 8% in Scotland. The surcharge does not apply to properties purchased for less than £40,000.
If you're buying a new main residence before selling your old one, you'll initially pay the higher rate. However, you can claim a refund of the surcharge if you sell your previous main home within 36 months of purchasing the new one. The claim must be made within 12 months of the sale of the old property, or within 12 months of the filing date for the new purchase — whichever is later.
If you've never owned property and your first purchase is a buy-to-let, you won't pay the additional property surcharge. However, you won't qualify for first-time buyer relief either — you'll pay standard SDLT rates.
Non-UK residents purchasing residential property in England and Northern Ireland pay an additional 2% surcharge on top of all applicable SDLT rates. This stacks with other surcharges — so an overseas investor buying an additional property would pay both the 5% additional property surcharge and the 2% non-UK resident surcharge, for a combined 7% on top of standard rates.
You're considered a non-UK resident for SDLT purposes if you've spent fewer than 183 days in the UK in the 12 months before your purchase. If buying jointly, the surcharge applies if any one of the buyers is non-UK resident.
Scotland and Wales do not currently apply a separate non-UK resident surcharge on their respective transaction taxes.
In England and Northern Ireland, you must file an SDLT return and pay any tax due within 14 days of completion — the date you legally become the owner and receive the keys. In Scotland and Wales, the deadline is 30 days.
In practice, your solicitor or conveyancer will handle the SDLT return and payment on your behalf. Most solicitors request the stamp duty funds before completion to ensure there is no risk of a late payment. Miss the deadline, and you could face penalties and interest charges from HMRC.
It is your legal responsibility to ensure stamp duty is paid on time, even if you have instructed a solicitor to handle it. The same deadlines and obligations apply whether you are purchasing as an individual or through a limited company.
Technically you can increase your mortgage borrowing to cover stamp duty costs — though whether you should is another matter entirely.
Say you need a £180,000 mortgage to purchase a £300,000 property. Adding the £5,000 stamp duty would mean requesting £185,000 and using the freed-up cash from your deposit to cover the SDLT. Over a 25-year term at 5% interest, that extra £5,000 borrowing will cost roughly £4,000 in additional interest — so you're effectively paying £9,000 for a £5,000 tax bill.
There's another catch: increasing your mortgage changes your loan-to-value ratio (LTV). In the example above your LTV would shift from 60% to roughly 62%, potentially pushing you out of the most competitive mortgage rate brackets. For buy-to-let investors, lenders also apply rental coverage ratios — a larger mortgage could mean your expected rental income no longer meets the required threshold.
Where possible, it is advisable to pay stamp duty from savings and keep your mortgage as lean as possible. Speak to a mortgage broker who understands property investment to find the right approach for your situation.