Stamp Duty Land Tax
Stamp Duty Land Tax is the tax a buyer pays on a property purchase in England. Rates rise in bands, with relief for first-time buyers.
Stamp Duty Land Tax, often shortened to stamp duty or SDLT, is a tax paid by the buyer when they buy property or land in England. It is collected by HM Revenue and Customs.
It does not apply in Wales, where buyers pay Land Transaction Tax instead.
Standard residential rates
The tax is charged in bands. Each rate applies only to the part of the price that falls within its band. For a buyer who will own only one home after the purchase, the rates are 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million, and 12% above £1.5 million.
As an example, on a £300,000 home a home mover pays nothing on the first £125,000, £2,500 on the next £125,000 and £2,500 on the last £50,000. That makes £5,000 in total.
First-time buyers
First-time buyers pay no tax on the first £300,000 and 5% on the part from £300,001 to £500,000. If the price is over £500,000, the relief does not apply and the standard rates are used.
Using the same example, a first-time buyer of a £300,000 home pays no Stamp Duty Land Tax.
Additional homes and other surcharges
A buyer who will own more than one home after the purchase usually pays 5% on top of each standard rate. This applies to most second homes and buy-to-let purchases. It does not apply when the buyer is replacing their main home.
In the example above, an additional home at £300,000 would carry £20,000 in tax: the £5,000 standard charge plus 5% of the full price. Buyers who are not resident in the UK usually pay a further 2% surcharge.
Paying the tax
The return and payment are due within 14 days of completion. The buyer's conveyancer usually files the return and pays the tax as part of conveyancing. The price on which the tax is charged is the same price that later appears in sold price records.
| Applies in | England |
| Paid by | The buyer |
| Standard nil-rate band | Up to £125,000 |
| First-time buyers | 0% up to £300,000; no relief above £500,000 |
| Additional homes | 5% on top of the standard rates |
Related terms
Land Transaction Tax · Buy-to-let · Completion · Conveyancing · Price Paid Data