Overview

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland.

The tax is different if the property or land is in:

• Scotland – pay Land and Buildings Transaction Tax
• Wales – pay Land Transaction Tax if the sale was completed on or after 1 April 2018

You pay the tax when you:

• buy a freehold property
• buy a new or existing leasehold
• buy a property through a shared ownership scheme
• are transferred land or property in exchange for payment, for example you take on a mortgage or buy a share in a house

Thresholds

The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there’s no SDLT to pay.

The current SDLT threshold for residential properties is £250,000.

There were different thresholds and rates for residential properties before 23 September 2022.

The threshold for non-residential land and properties is £150,000.

First-time buyers

If you’re buying your first home

You can claim a discount (relief) if the property you buy is your first home. You’re eligible if you and anyone else you’re buying with are first-time buyers.

The discount you can claim depends on when you purchase the property.

Discount up to 31 March 2025

You’ll pay:

• no SDLT up to £425,000
• 5% SDLT on the portion from £425,001 to £625,000

If the price is over £625,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before.

Example

You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:

• 0% on the first £425,000 = £0
• 5% on the remaining £75,000 = £3,750
• total SDLT = £3,750

Discount from 1 April 2025

You’ll pay:

• no SDLT up to £300,000
• 5% SDLT on the portion from £300,001 to £500,000

If the price is over £500,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before.

Example

You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:

• 0% on the first £300,000 = £0
• 5% on the remaining £200,000 = £10,000
• total SDLT = £10,000

 

How much you pay

How much you pay depends on whether the land or property is residential use or non-residential or mixed-use.

If you’re buying a residential property there are different rates of SDLT if:

• you’re a first-time buyer
• you already own a property and you’re buying an additional property
• you’re not a UK resident

You can use HM Revenue and Customs’ (HMRC) SDLT calculator to work out how much tax you’ll pay.

You may be able to reduce the amount of tax you pay by claiming relief, such as if you’re a first-time buyer or purchasing more than one property (‘multiple dwellings’).

Rates for a single property

You pay SDLT at these rates if, after buying the property, it is the only residential property you own. You usually pay 5% on top of these rates if you own another residential property.

Rates up to 31 March 2025

Property or lease premium or transfer value	SDLT rate
Up to £250,000	Zero
The next £675,000 (the portion from £250,001 to £925,000)	5%
The next £575,000 (the portion from £925,001 to £1.5 million)	10%
The remaining amount (the portion above £1.5 million)	12%

Example

In October 2024 you buy a house for £295,000. The SDLT you owe will be calculated as follows:

• 0% on the first £250,000 = £0
• 5% on the final £45,000 = £2,250
• total SDLT = £2,250

Rates from 1 April 2025

Property or lease premium or transfer value	SDLT rate
Up to £125,000	Zero
The next £125,000 (the portion from £125,001 to £250,000)	2%
The next £675,000 (the portion from £250,001 to £925,000)	5%
The next £575,000 (the portion from £925,001 to £1.5 million)	10%
The remaining amount (the portion above £1.5 million)	12%

Example

In April 2025 you buy a house for £295,000. The SDLT you owe will be calculated as follows:

• 0% on the first £125,000 = £0
• 2% on the second £125,000 = £2,500
• 5% on the final £45,000 = £2,250
• total SDLT = £4,750

Use the SDLT calculator to work out how much tax you’ll pay.

The value you pay SDLT on (the ‘consideration’)

The total value you pay SDLT on (sometimes called the ‘consideration’) is usually the price you pay for the property or land.

Sometimes it might include another type of payment like:

• goods
• works or services
• release from a debt
• transfer of a debt, including the value of any outstanding mortgage

Find out how to work out the consideration if your situation is complicated.

If you’re replacing your main residence

You will not pay the extra 5% SDLT if the property you’re buying is replacing your main residence and that has already been sold.

If you have not sold your main residence on the day you complete your new purchase you’ll have to pay higher rates. This is because you own 2 properties.

You can apply for a refund if you sell your previous main home within 36 months.

If it takes longer than 36 months to sell your previous main home

You may still be able to get a refund of the extra 5% SDLT if all of the following apply:

• you purchased your new home on or after 1 January 2017
• exceptional circumstances stopped you from selling your old home, for example government restrictions because of coronavirus (COVID-19) or a public authority blocking the sale
• you have now sold your old home

To claim a refund, write to HMRC and explain why the sale took longer than 36 months.

Include:

• your details
• details of the main buyer – if different to your own
• details of the exceptional circumstances that prevented the sale of your property
• details of the property where higher rate SDLT was paid – including the address, date of purchase and SDLT unique transaction reference number
• details of the previous main residence – including the address, date of sale and SDLT unique transaction reference number
• the amount of higher rate SDLT paid
• the amount of tax you’re asking for a repayment of
• a bank account and sort code for the person receiving the payment

 

How and when to pay

You must send an SDLT return to HMRC and pay the tax within 14 days of completion.

If you have a solicitor, agent or conveyancer, they’ll usually file your return and pay the tax on your behalf on the day of completion. They’ll then add the tax to their fees. They’ll also claim any relief you’re eligible for, such as if you’re a first-time buyer.

If they do not do this for you, you can file a return and pay the tax yourself.

There are certain situations where you do not need to send a return.

You may be charged penalties and interest if you do not file your return and make your payment within 14 days of completion.