Understanding Stamp Duty Land Tax: A Complete Guide

Stamp Duty Land Tax (SDLT) is often one of the most significant costs in a property transaction, yet many buyers are unclear about exactly how it works.

How SDLT Is Calculated

SDLT is calculated on a sliding scale based on the purchase price. As of 2025, the rates for residential properties are:

• Up to £250,000: 0%
• £250,001 to £925,000: 5%
• £925,001 to £1,500,000: 10%
• Above £1,500,000: 12%

These rates apply to the portion of the price within each band — not the entire purchase price.

First-Time Buyer Relief

First-time buyers pay no SDLT on the first £425,000 (as of 2025 rates — confirm current thresholds at the time of purchase). This can represent a significant saving.

Additional Property Surcharge

If you're buying an additional residential property (a second home or buy-to-let investment), a 3% surcharge applies on top of the standard rates. This makes buy-to-let calculations considerably more complex — speak to a tax advisor.

Non-UK Resident Surcharge

Non-UK residents purchasing property in England and Northern Ireland pay an additional 2% surcharge.

When Must SDLT Be Paid?

SDLT must be paid and a return submitted within 14 days of completion. Your solicitor will typically handle this on your behalf.

Getting Advice

SDLT can become complex with non-standard transactions. We always recommend taking specialist tax advice for purchases above £1 million, mixed-use properties, or where reliefs may be available.