What it is, how the bands stack, who gets relief, and what changed in April 2025.
Stamp Duty Land Tax (SDLT) is the tax you pay when you buy a property in England or Northern Ireland. Scotland has its own equivalent — Land and Buildings Transaction Tax (LBTT). Wales has Land Transaction Tax (LTT). The names differ; the principle is the same: a percentage of the purchase price, paid to the government as a condition of the transaction completing.
You don't pay it directly — your solicitor or conveyancer collects it and pays HMRC on completion day. But it comes out of your money, and it's due within 14 days of completion. Miss the deadline and there are automatic penalties and interest charges.
Stamp duty is not negotiable, not avoidable, and not refundable (with very limited exceptions). Understanding it before you make an offer is genuinely important, because it's a significant cost that can affect what you can afford to buy.
This is the thing that has caught a lot of buyers out. During and after the COVID period, the government temporarily raised the thresholds at which stamp duty kicks in, to stimulate the property market. The emergency rates were:
These temporary rates expired on 31 March 2025. From 1 April 2025, the rates reverted to their pre-COVID levels. This means buyers who made calculations based on the temporary rates — or used an outdated calculator — would have significantly underestimated their tax bill.
The current (post-April 2025) rates are what this guide covers.
Stamp duty is a marginal tax, not a flat rate. You pay the rate for each band only on the portion of the price that falls within that band — not on the whole purchase price. This is exactly how income tax works, and it's the source of the most common misunderstanding about stamp duty.
You buy a house for £350,000 as a home mover (not a first-time buyer, not buying a second property).
The common mistake is to think: "5% of £350,000 = £17,500." That would be catastrophically wrong. Stamp duty is always marginal — each rate only applies to the slice of price within that band.
First-time buyers pay less stamp duty. From April 2025, the relief applies as follows:
So a first-time buyer purchasing at £400,000 pays 5% on the £100,000 above £300,000 — a tax bill of £5,000. A standard mover buying the same property would pay £7,500. The relief saves £2,500.
But a first-time buyer at £550,000 gets no relief whatsoever and pays the full standard rate, as if they were an ordinary home mover. The £500,000 ceiling is a cliff edge, not a taper.
You must never have owned a residential property anywhere in the world — not in the UK, not abroad. If you previously owned a home and sold it years ago, you are not a first-time buyer. If you inherited a share of a property (even a small share), you may not be a first-time buyer. When buying with another person, both buyers must be first-time buyers to claim the relief.
If you already own a home and are buying a second property — whether as a buy-to-let, holiday home, or second residence — you pay an additional 5% surcharge on top of the standard rates at every band.
On a £350,000 second property, you would pay: £6,250 (at 5%) + £8,750 (at 7%) + £5,000 (at 10%) = £20,000 — compared to £7,500 for a standard mover. The surcharge is substantial and has significantly cooled the buy-to-let market.
You can claim a refund of the 5% surcharge if you sell your previous main home within 36 months of completing the purchase of your new one. This is designed for people who are in a genuine chain situation where they happen to briefly own two properties. You have to actively apply for the refund from HMRC — it is not automatic.
Scotland replaced SDLT with its own tax in 2015. The bands are different from England's and are set by the Scottish Government independently.
First-time buyer relief in Scotland increases the 0% threshold to £175,000.
The Additional Dwelling Supplement (ADS) in Scotland is 6% (not 5% as in England) on the full purchase price of additional properties.
Wales replaced SDLT with LTT in 2018. The bands are again independently set.
Wales does not have a first-time buyer relief scheme. The higher residential rates (equivalent to the second home surcharge) in Wales add 4% on each band.
SDLT rates on commercial property, land, and mixed-use properties (such as a flat above a shop) are different from — and generally lower than — residential rates. If you're buying property with any commercial element, always get specialist advice, as the classification can significantly affect the tax due and is an area where mistakes and avoidance schemes both occur regularly.
You do not pay stamp duty on properties transferred as gifts (no money changes hands), on inherited properties (though other taxes may apply), or on transfers between divorcing spouses as part of a financial settlement. Certain other reliefs exist for charities, registered social landlords, and specific compulsory purchase situations.
Treating it as a flat rate. The most expensive misunderstanding. Always calculate band by band.
Using an outdated calculator. The April 2025 changes caught many people out. Use a calculator that specifies it uses the current rates.
Forgetting the 14-day deadline. SDLT is due 14 days after completion, not 30 days, not "when you get around to it." Your solicitor should handle this automatically, but confirm it.
Assuming first-time buyer status when it's not clear. If there's any doubt — inherited property shares, overseas property, previous ownership — take advice before you rely on the relief.
Not budgeting for it at all. Stamp duty on a £400,000 purchase can be £10,000 or more. That's not a rounding error — it needs to be in your budget from the start.
Enter any property price, your buyer type, and the country you're buying in, and you'll get a full band-by-band breakdown in seconds.