Stamp Duty (SDLT)

How Stamp Duty Affects Property Purchases

Stamp Duty Land Tax (SDLT) is paid when you buy property or land in England and Northern Ireland above £250,000. First-time buyers pay no stamp duty on the first £425,000 of a property up to £625,000. Rates range from 5% to 12% in progressive bands above the threshold.

Stamp duty is a significant upfront cost when buying a home. On a £350,000 property, a non-first-time buyer would pay £5,000 in stamp duty. Additional properties (buy-to-let, second homes) attract a 5% surcharge on top of standard rates.

Scotland has the Land and Buildings Transaction Tax (LBTT) and Wales has the Land Transaction Tax (LTT) with different rates and thresholds. Use our stamp duty calculator for an accurate calculation for your specific situation.

How Stamp Duty Works in Practice

Stamp Duty Land Tax (SDLT) is a tax on property purchases in England and Northern Ireland (Scotland has LBTT, Wales has LTT). For residential properties, the rates are: 0% up to £125,000 (or £250,000 for first-time buyers), 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1,500,000, and 12% above £1,500,000. An additional 3% surcharge applies to second homes and buy-to-let properties.

Practical Tips

First-time buyers benefit from significant relief: no stamp duty on properties up to £300,000, and 5% on the portion between £300,001 and £500,000. For a £300,000 first home, this saves £2,500 compared to standard rates. The additional dwelling supplement (3% surcharge) applies to buy-to-let purchases and second homes, significantly increasing costs. Budget for stamp duty alongside solicitor fees and survey costs when planning a purchase. See stamp duty calculator.

Related Topics

Stamp duty thresholds and rates change periodically — the current first-time buyer relief was made permanent in 2025. If you own a property overseas, purchasing in England may attract the 3% surcharge. See mortgage affordability guides for property budget planning.