Stamp Duty Land Tax (SDLT) is the tax you pay when buying residential or commercial property in England and Northern Ireland. Scotland has its own Land and Buildings Transaction Tax (LBTT), and Wales has the Land Transaction Tax (LTT) — both follow similar principles but with different thresholds and rates.
This guide covers the 2025 SDLT rules for residential property purchases in England.
Current SDLT Rates (2025)
Following the end of the temporary stamp duty holiday, the standard residential SDLT thresholds returned to their pre-2022 levels on 1 April 2025:
| Purchase Price Band | Standard Rate | Additional Property Rate |
|---|---|---|
| Up to £250,000 | 0% | 3% |
| £250,001 – £925,000 | 5% | 8% |
| £925,001 – £1,500,000 | 10% | 13% |
| Over £1,500,000 | 12% | 15% |
SDLT is calculated on a marginal basis — each band applies only to the portion of the price that falls within it, not the entire purchase price.
Worked Example: £350,000 Standard Purchase
- £0 – £250,000 at 0% = £0
- £250,001 – £350,000 at 5% = £5,000
- Total SDLT: £5,000 (effective rate: 1.43%)
First-Time Buyer Relief
First-time buyers purchasing a property up to £625,000 benefit from enhanced relief:
- 0% on the first £425,000
- 5% on the portion from £425,001 to £625,000
- No relief is available if the property costs more than £625,000
First-Time Buyer Example: £400,000
- £0 – £425,000 at 0% = £0
- Total SDLT: £0 (saving of £8,750 vs. standard rate)
To qualify, you must never have owned a residential property anywhere in the world, including inherited property.
Additional Property Surcharge
If you are buying an additional residential property (buy-to-let, second home, or holiday home) while already owning another, a 3% surcharge applies on top of the standard rates across all bands.
Additional Property Example: £350,000
- £0 – £250,000 at 3% = £7,500
- £250,001 – £350,000 at 8% = £8,000
- Total SDLT: £15,500 (effective rate: 4.43%)
The surcharge applies even if you plan to sell your main residence — though you can claim a refund within 12 months if you sell your previous main home after completing the purchase.
Scotland: Land and Buildings Transaction Tax (LBTT)
Scotland operates its own system with different thresholds:
| Purchase Price Band | Standard Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Over £750,000 | 12% |
First-time buyers in Scotland benefit from a higher nil-rate threshold of £175,000. The Additional Dwelling Supplement (ADS) is 6% on the full purchase price.
Wales: Land Transaction Tax (LTT)
Wales uses the Land Transaction Tax with the following residential rates:
| Purchase Price Band | Standard Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Wales does not currently offer a specific first-time buyer relief, but the higher nil-rate threshold (£225,000 vs £250,000 in England) provides some benefit. The higher rates surcharge is 4%.
Other Costs to Budget For
SDLT is just one of several costs when buying property in the UK:
| Cost | Typical Amount |
|---|---|
| SDLT | Varies (see above) |
| Solicitor / Conveyancer | £1,200 – £2,500 |
| Homebuyer Survey (Level 2) | £400 – £800 |
| HM Land Registry Fee | £20 – £500 |
| Mortgage Arrangement Fee | £0 – £2,000 |
| Total buying costs | £2,000 – £6,000+ (excl. SDLT) |
When Is SDLT Due?
SDLT must be paid and a return submitted to HMRC within 14 days of completion. Your solicitor or conveyancer will normally handle this on your behalf, deducting the amount from the funds you provide on completion day.
Key Takeaways
Stamp Duty Land Tax is a significant cost that every UK property buyer must plan for. The marginal rate system means the effective rate is always lower than the headline rate for the top band. First-time buyers purchasing under £425,000 pay no SDLT at all, making the relief particularly valuable in most UK markets outside London.
Use the PropCalc Stamp Duty Calculator to calculate your exact SDLT liability based on your purchase price, buyer type, and whether the property is an additional dwelling.
First-Time Buyer Relief
First-time buyers in England and Northern Ireland benefit from enhanced nil-rate bands. As of 2025/26, no SDLT is payable on the first £425,000 for properties up to £625,000. Above £625,000, standard rates apply from the first pound with no first-time buyer relief.
To qualify, you must never have owned a property anywhere in the world (including inherited property), and the property must be your main residence. Both buyers in a joint purchase must be first-time buyers for the relief to apply.