Use the calculator
Try the Rent vs Buy Calculator to put these concepts into practice.
Key takeaways
- ✓No SDLT on the first £250,000 of purchase price (post-September 2022 thresholds)
- ✓First-time buyers pay no SDLT up to £425,000 and 5% on the portion up to £625,000
- ✓Second home or buy-to-let buyers pay a 3% surcharge on top of standard rates
- ✓Scotland uses LBTT and Wales uses LTT — different rates apply in each nation
- ✓SDLT must be paid within 14 days of completion — your solicitor handles this
Current SDLT rates for residential property in England
Stamp Duty Land Tax in England is tiered on the purchase price:
Up to £250,000: 0% £250,001 to £925,000: 5% £925,001 to £1,500,000: 10% Above £1,500,000: 12%
Example — buying a £400,000 property: First £250,000: £0 Remaining £150,000 at 5%: £7,500 Total SDLT: £7,500
Note: The £250,000 nil rate threshold was introduced in September 2022 and is scheduled to revert to £125,000 in April 2025. Always check gov.uk for the current applicable thresholds at time of purchase.
💡 Tip: Check the current SDLT thresholds on gov.uk immediately before purchasing — the government has changed these multiple times in recent years.
First-time buyer relief
First-time buyers in England benefit from enhanced SDLT relief:
First-time buyers pay: — 0% on properties up to £425,000 — 5% on the portion from £425,001 to £625,000 — Standard rates on properties above £625,000 (no relief available)
Example for a first-time buyer purchasing at £500,000: First £425,000: £0 Remaining £75,000 at 5%: £3,750 Total SDLT: £3,750
Vs standard buyer at £500,000: £12,500 First-time buyer saving: £8,750
All purchasers on the title must be first-time buyers, and the property must be your primary residence.
Second home and buy-to-let surcharge
Buyers purchasing an additional residential property pay a 3% surcharge on top of all standard SDLT rates.
For a buy-to-let at £285,000: Standard SDLT: £1,750 3% surcharge on full £285,000: £8,550 Total SDLT: £10,300
The surcharge applies even if the buyer will live in the new property before selling their previous home, unless the previous main residence is sold within 3 years (at which point a refund can be claimed).
Limited companies buying residential property also pay the 3% surcharge.
Scotland, Wales and Northern Ireland
SDLT only applies in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT) with different rates — nil rate up to £145,000, rising to 12% above £750,000. Additional Dwelling Supplement is 6% on second homes.
Wales uses Land Transaction Tax (LTT) with nil rate up to £225,000, rising to 12% above £1,500,000. Higher rates apply for second homes.
Always use the specific calculator for your jurisdiction.
Frequently Asked Questions
Calculators mentioned in this guide
Disclaimer: Calculations are estimates for general guidance only and do not constitute regulated financial advice. Rates and costs vary by lender and property location. Stamp Duty Land Tax figures use England rates — Scotland (LBTT) and Wales (LTT) differ. Always consult an FCA-authorised mortgage adviser.