Stamp Duty (SDLT) Explained
A tax on property purchases in England and Northern Ireland. The amount depends on the purchase price, whether you are a first-time buyer, and whether it is an additional property.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax paid when you buy property or land above a certain price in England and Northern Ireland. Scotland has its own version (LBTT) and Wales has LTT. The tax is calculated on a sliding scale, with different rates applying to different portions of the purchase price.
How it works
For 2025-26, the standard residential rates are: 0% on the first £125,000, 2% on £125,001 to £250,000, 5% on £250,001 to £925,000, 10% on £925,001 to £1.5 million, and 12% above £1.5 million. First-time buyers pay 0% on the first £300,000 and 5% on £300,001 to £500,000 (only if the total price is under £500,000). Additional properties (second homes, buy-to-let) attract a 5% surcharge on top of standard rates from October 2024.
Real example
A couple buys their first home for £350,000. As first-time buyers: 0% on the first £300,000 and 5% on the remaining £50,000. Total SDLT: £2,500. If they were not first-time buyers, they would pay: 0% on £125,000, 2% on £125,000 (£2,500) and 5% on £100,000 (£5,000). Total: £7,500. The first-time buyer relief saves them £5,000.
Who does this affect?
Anyone purchasing property in England or Northern Ireland above the threshold. First-time buyers benefit from enhanced relief. Buy-to-let investors and second home buyers pay the highest rates due to the 5% surcharge. The tax is paid by the buyer, usually handled by the solicitor during the conveyancing process.
HMRC source
Related calculators: