How SDLT works
Stamp Duty Land Tax (SDLT) is a tax paid when buying a property or piece of land in England and Northern Ireland. The amount depends on the purchase price, whether you are a first-time buyer, whether you already own another property, and whether the purchase is residential, additional property or non-residential land.
First-time buyers may qualify for SDLT relief, paying no Stamp Duty on the first £300,000 of a property purchase and 5% on the portion between £300,001 and £500,000. For properties above £500,000, standard SDLT rates apply and no first-time buyer relief is available. If you already own another residential property worth £40,000 or more anywhere in the world, a 5% additional property surcharge may apply to the whole purchase price. This can usually be reclaimed if you sell your previous main residence within 36 months of completion. SDLT rules can vary depending on your circumstances, so your solicitor or conveyancer will confirm the exact amount due before completion.
- Up to £125,000 — 0% (5% for additional properties).
- £125,001 – £250,000 — 2% (7%).
- £250,001 – £925,000 — 5% (10%).
- £925,001 – £1.5m — 10% (15%).
- Above £1.5m — 12% (17%).
Stamp Duty on land purchases
SDLT can apply to purchases of land as well as buildings. The rates and rules depend on whether the transaction relates to residential property, non-residential property, mixed-use property or other land interests.
Additional 5% surcharge
This can apply when purchasing a second home, buy-to-let property or an additional residential investment. The surcharge is calculated on top of the standard SDLT rates and applies across the relevant purchase price bands.
If you are replacing your main residence, the surcharge may initially apply if your previous home has not yet been sold. However, the additional charge can usually be reclaimed if the previous main residence is sold within 36 months of completing the new purchase.
Stamp Duty payable
£12,500
Effective rate 2.78% on £450,000.
Indicative only. Based on current residential SDLT rates for England and Northern Ireland. Your actual liability may vary depending on your circumstances, including non-UK residency, mixed-use purchases, company ownership or other reliefs. Always confirm the final position with your solicitor or tax adviser before completion.
