Stamp Duty (SDLT)

How Stamp Duty works

SDLT is charged in bands, a little like income tax: you pay a rate only on the portion of the price that falls within each band, not the whole price at one rate. It applies to property in England and Northern Ireland. Scotland has its own Land and Buildings Transaction Tax, and Wales has Land Transaction Tax, each with different bands and thresholds.

Standard residential rates

For someone buying their only home, having sold any previous main residence, the standard SDLT rates on the price are:

• Up to £125,000 — 0%
• £125,001 to £250,000 — 2%
• £250,001 to £925,000 — 5%
• £925,001 to £1.5 million — 10%
• Above £1.5 million — 12%

First-time buyer relief

First-time buyers get a relief: no SDLT on the first £300,000, then 5% on the portion from £300,001 to £500,000. The relief is not available at all if the property costs more than £500,000, in which case the standard rates apply to the whole price.

The additional-property surcharge

If buying a property means you will own more than one — for example a second home or a buy-to-let — you usually pay a 5% surcharge on top of the standard rates. The surcharge does not apply if you are simply replacing your main residence. If you buy a new main home before selling your old one, you pay the surcharge but can normally reclaim it if you sell the previous home within 36 months.

Paying it and checking the figures

SDLT is normally handled by your solicitor or conveyancer, who files the return and pays HMRC on your behalf — usually within 14 days of completion. Rates and thresholds can change at Budgets and other fiscal events, so always check the current figures on GOV.UK before you budget, and use the official HMRC calculator to estimate what you will owe.