Stamp Duty Land Tax, or SDLT, is a tax you pay when you buy a home in England or Northern Ireland. Scotland and Wales have their own versions, with different rates.
How the bands work
You pay the rate for each band only on the slice of the price inside it. You do not pay one rate on the whole price.
| Part of the price | Rate |
|---|---|
| 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% |
A worked example
A £400,000 home that will be your main home.
| Slice | Amount | Rate | Tax |
|---|---|---|---|
| First £125,000 | £125,000 | 0% | £0 |
| Next £125,000 | £125,000 | 2% | £2,500 |
| Next £150,000 | £150,000 | 5% | £7,500 |
| Total | £10,000 |
That is 2.5% of the price. Try your own price in the stamp duty calculator.
First-time buyers
First-time buyers pay nothing up to £300,000 and 5% on the part from £300,001 to £500,000. On a £400,000 home, that is £5,000, half the standard figure.
The relief is not available if the price is above £500,000. Then you pay the standard rates on the whole price. A £600,000 home would have £20,000 of stamp duty with no relief.
Second homes and buy to let
If you are buying an additional residential property that costs £40,000 or more, 5 percentage points are added to every band. The same £400,000 home would cost £30,000 in stamp duty, which is 7.5% of the price.
If you are replacing your main home and sell the old one within 36 months, the extra charge may not apply. Check GOV.UK, or ask your solicitor.
Buyers who are not UK residents
Buyers who are not UK residents pay a further 2% on top. A £400,000 main home would be £18,000. We do not show a figure for a first-time buyer who is also a non-UK resident, because we could not confirm from GOV.UK how the two combine.
Good to know
- The return is due within 14 days of the effective date, which is usually completion. Your solicitor or conveyancer normally files the return and pays it.
- Rates and thresholds can change, especially at Budgets. Check GOV.UK before you commit.
- Special cases such as shared ownership, buying through a company, and mixed-use property work differently.
This is general information, not tax or legal advice.
Sources
This article is for education and is not financial, tax or legal advice. Figures are checked against the sources above and may change. Read the full disclaimer.