Stamp Duty Land Tax (SDLT) is one of the biggest upfront costs when buying a property in England and Northern Ireland. This guide explains how it works, with real examples to help you understand what you'll pay.
What is Stamp Duty?
Stamp Duty Land Tax is a tax you pay when you buy a property or land over a certain price in England and Northern Ireland. Like income tax, it's charged in bands—you pay different rates on different portions of the property price.
Note: Scotland has Land and Buildings Transaction Tax (LBTT), and Wales has Land Transaction Tax (LTT), which have different rates. This guide focuses on SDLT in England.
Current SDLT Rates (2025)
Standard Residential Rates
- Up to £250,000: 0%
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Above £1.5 million: 12%
First-Time Buyers
If you're a first-time buyer purchasing a property up to £625,000, you get relief:
- Up to £425,000: 0%
- £425,001 to £625,000: 5%
If the property costs more than £625,000, you pay standard rates on the entire amount.
Additional Properties
Buying a second home or buy-to-let? You pay an extra 3% on top of standard rates for each band.
Real Examples: What You'll Actually Pay
Example 1: First-Time Buyer - £200,000 Flat
£200,000 Flat (First-Time Buyer)
Stamp Duty: £0
Why? The property is under £425,000, so first-time buyers pay nothing.
Example 2: Standard Purchase - £350,000 House
£350,000 House (Not First-Time Buyer)
- First £250,000: 0% = £0
- Next £100,000 (£250k-£350k): 5% = £5,000
Total Stamp Duty: £5,000
Example 3: Family Home - £500,000 House
£500,000 House
- First £250,000: 0% = £0
- Next £675,000 (£250k-£500k): 5% = £12,500
Total Stamp Duty: £12,500
Example 4: Additional Property - £300,000 Buy-to-Let
£300,000 Buy-to-Let (Additional Property)
- First £250,000: 3% (0% + 3% surcharge) = £7,500
- Next £50,000 (£250k-£300k): 8% (5% + 3% surcharge) = £4,000
Total Stamp Duty: £11,500
Compare to £2,500 for a main residence at the same price!
Property Price Comparisons
Here's how Stamp Duty varies across different property prices for standard purchases:
£200,000 Flat
Below the £250k threshold
£300,000 House
5% on £50k (above £250k)
£450,000 House
5% on £200k (above £250k)
£600,000 House
5% on £350k (above £250k)
£1,000,000 House
Multiple bands apply
£2,000,000 House
12% on top portion
Key Things to Remember
- You must pay within 14 days of completing your purchase
- Your solicitor usually handles it for you as part of the conveyancing process
- It's non-refundable even if you sell the property shortly after
- Additional property surcharge applies even if you're selling your main home (though you can claim a refund if you sell within 3 years)
- Companies pay higher rates if buying residential property
How to Calculate Your Stamp Duty
Rather than working it out manually, use our Stamp Duty Calculator to get an instant, accurate calculation for your property purchase. It covers England, Wales, Northern Ireland, and Scotland.
Planning to buy a property? Use our Stamp Duty Calculator to find out exactly how much you'll need to pay, including first-time buyer relief and additional property surcharges.