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Stamp Duty Land Tax (SDLT)

 

SDLT at a glance (Oct 2025)

  • What it is: A tax paid by the buyer when land or property is purchased. (Scotland uses LBTT; Wales uses LTT.)

  • When it’s due: Your return and payment must reach HMRC within 14 days of completion. Your conveyancer normally files and pays on completion, then settles it with you in the final bill. 

  • How you’re charged: SDLT is banded. You pay different rates on slices of the price. Reliefs or surcharges can change what you owe (e.g., first-time buyer relief, extra % for second homes, 2% for non-UK residents). 

 

Quick summary of the latest rules (what changed in 2025)

  • The temporary stamp duty cuts from 2022 ended on 1 April 2025. Standard residential bands reverted to the pre-2022 levels (0% only up to £125,000). First-time buyer relief returned to its earlier design (details below). 

  • The “additional property” surcharge (second homes, most buy-to-lets) is now +5% on top of the standard bands (previously +3%).

  • Multiple Dwellings Relief (MDR) was abolished for transactions effective on or after 1 June 2024 (with limited transitional protection for contracts exchanged on or before 6 March 2024). 

 

Standard residential rates (single property you’ll own outright)

  • 0% on the portion up to £125,000

  • 2% on the portion £125,001–£250,000

  • 5% on the portion £250,001–£925,000

  • 10% on the portion £925,001–£1.5m

  • 12% on the portion above £1.5m
    If you will still own another dwelling on completion, the higher rates below apply instead. 

 

Higher rates for additional properties (second homes, most buy-to-let)

  • From 1 April 2025, add 5 percentage points to each residential band if, at the end of completion day, you (or your spouse/civil partner) own more than one dwelling worth £40,000+ and you are not replacing your main residence at the same time.

  • If you sell your previous main residence within 36 months of buying the new one, you can claim a refund of the “extra” element. 

 

First-time buyer relief (2025 rules)

  • You pay no SDLT on the first £300,000, and 5% on £300,001–£500,000—only if the purchase price is £500,000 or less and all buyers are first-time buyers intending to occupy as their only or main residence. Over £500,000: the standard (non-relief) rates apply. 

 

Non-UK resident surcharge

  • If you’re not UK-resident for SDLT purposes (broadly, present in the UK fewer than 183 days in the 12 months before purchase), add a +2% surcharge on top of any other applicable residential rates (including the 5% “additional property” uplift if applicable). 

 

Leaseholds, new leases, and ground rent

  • New residential leases: SDLT applies to the lease premium at the normal residential bands and potentially to the rent element. If the net present value (NPV) of rent exceeds £125,000, a 1% charge applies to the portion above that threshold. (Assigned/existing leases are usually charged on the consideration only.) 

 

Mixed-use and non-residential purchases

  • Mixed or non-residential property uses different bands: 0% to £150,000, 2% on £150,001–£250,000, then 5% on the portion above £250,000. 

 

Multiple Dwellings Relief (MDR): where we are now

  • Abolished for transactions with an effective date on or after 1 June 2024. Transitional rules can preserve MDR if contracts were exchanged by 6 March 2024, even if you completed later (subject to conditions). If you’re considering portfolio purchases, you’ll now typically pay non-residential rates only if the transaction counts as 6+ dwellings in one go. 

 

Filing, paying, and proof

  • Your conveyancer will file the SDLT return and pay the tax for you on completion in most cases. You must make sure it’s done correctly and on time—14 days after completion—or HMRC can add penalties and interest. 

  • Keep your completion statement and HMRC acknowledgement. If you need to verify, your file will have a unique HMRC reference for the return/payment (often requested when chasing HMRC).

 

Refunds, amendments, and common edge cases

  • Replacing your main residence: If you had to pay higher rates because your old home hadn’t sold, you can claim a refund once it sells, so long as it’s within 36 months of buying the new one. The claim must be made within HMRC’s stated time limits. 

  • Amending returns: You ordinarily have 12 months from the filing date to amend an SDLT return (the filing dateis 14 days after completion). 

  • Companies and trusts: Companies pay higher rates on most residential purchases; a separate 17% corporate rate can apply to enveloped high-value purchases. Always check the corporate/trust rules if buying through structures. 

 

Practical examples (described, not tabled)

  • Only home, £295,000: You pay 0% on the first £125,000, 2% on the next £125,000, and 5% on the remaining £45,000. 

  • First-time buyer, £500,000: 0% up to £300,000; 5% on the remaining £200,000. (If the price were over £500,000, the relief wouldn’t apply at all.) 

  • Second home, £300,000 (completing after 1 April 2025): Apply the standard bands plus 5% to each band slice (i.e., the higher-rates schedule). If you later sell your previous main home within 36 months, you can claim back the “extra” portion. 

 

What to do before you exchange

  • Ask your conveyancer to quote SDLT based on the correct rules for your completion date (this matters around rule changes).

  • If you’re first-time buyers, confirm you qualify (all purchasers must be genuine FTBs and intend to occupy). 

  • If you own (or will own) another property, budget for the +5% higher rates—and discuss the refund route if you’re replacing your main residence. 

  • For new leases, ask your lawyer to check if the rent NPV triggers the additional 1% charge. 

  • For mixed-use or 6+ dwellings, make sure they model the non-residential regime correctly. 

 

Red flags, myths, and “clever” schemes

  • Be wary of anyone promising “loopholes” to avoid SDLT. HMRC has successfully pursued many schemes; taxpayers have ended up paying the tax, interest, and penalties years later. If it sounds too good to be true, it almost certainly is. (Official guidance takes a hard line here.) 

 

Bottom line

  • Plan early, use the official calculator to sanity-check your figure, and ensure your conveyancer files and pays within 14 days.

  • Keep all documents (report on title, completion statement, SDLT acknowledgement).

  • If your status changes (e.g., you sell your old main home within the window), claim refunds promptly.

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SDLT Examples

Below are some examples at common price points.

 

Each line shows what a UK resident would pay (as a first-time buyer, a standard home mover, or an additional-property buyer), and then the equivalent for a non-UK resident (which means adding the 2% surcharge). Figures round to the nearest pound.

​

At £200,000:

A UK resident first-time buyer pays £0.

A UK resident home mover pays £1,500.

A UK resident buying an additional property pays £11,500.

A non-UK resident first-time buyer pays £4,000.

A non-UK resident home mover pays £5,500.

A non-UK resident additional-property buyer pays £15,500.

​

At £300,000: 

A UK resident first-time buyer pays £0.

A UK resident home mover pays £5,000.

A UK resident additional-property buyer pays £20,000.

A non-UK resident first-time buyer pays £6,000.

A non-UK resident home mover pays £11,000.

A non-UK resident additional-property buyer pays £26,000.

​

At £500,000: 

A UK resident first-time buyer pays £10,000.

A UK resident home mover pays £15,000.

A UK resident additional-property buyer pays £40,000.

A non-UK resident first-time buyer pays £20,000.

A non-UK resident home mover pays £25,000.

A non-UK resident additional-property buyer pays £50,000.

​

At £750,000:

A UK resident first-time buyer pays £27,500.

A UK resident additional-property buyer pays £65,000.

A non-UK resident first-time buyer and non-UK resident home mover each pay £42,500.

A non-UK resident additional-property buyer pays £80,000.

​

At £1,000,000:

A UK resident first-time buyer and a UK resident home mover each pay £43,750.

A UK resident additional-property buyer pays £93,750.

A non-UK resident first-time buyer and non-UK resident home mover each pay £63,750.

A non-UK resident additional-property buyer pays £113,750.

​

At £2,000,000:

A UK resident first-time buyer and a UK resident home mover each pay £153,750.

A UK resident additional-property buyer pays £253,750.

A non-UK resident first-time buyer and non-UK resident home mover each pay £193,750.

A non-UK resident additional-property buyer pays £293,750.

​

At £5,000,000: 

A UK resident first-time buyer and a UK resident home mover each pay £513,750.

A UK resident additional-property buyer pays £763,750.

A non-UK resident first-time buyer and non-UK resident home mover each pay £613,750.

A non-UK resident additional-property buyer pays £863,750.

​

At £10,000,000:

A UK resident first-time buyer and a UK resident home mover each pay £1,113,750.

A UK resident additional-property buyer pays £1,613,750.

A non-UK resident first-time buyer and non-UK resident home mover each pay £1,313,750.

A non-UK resident additional-property buyer pays £1,813,750.

​

At £50,000,000: 

A UK resident first-time buyer and a UK resident home mover each pay £5,913,750.

A UK resident additional-property buyer pays £8,413,750.

A non-UK resident first-time buyer and non-UK resident home mover each pay £6,913,750.

A non-UK resident additional-property buyer pays £9,413,750.

 

The gov.uk Stamp Duty Land Tax (SDLT) Calculator can be located here: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#!/intro

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