Stamp Duty Land Tax (SDLT) is one of the largest upfront costs when buying a property in England and Northern Ireland. Despite being a significant expense, many buyers are unclear on exactly how much they will pay and what reliefs may be available. This guide breaks down the current SDLT rates (effective from 1 April 2025), first-time buyer relief, additional property surcharges, and how the system differs in Wales and Scotland.
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Current SDLT Rates in England (from 1 April 2025)
SDLT is a progressive tax, meaning you only pay the higher rate on the portion of the purchase price that falls within each band — similar to how income tax works. The standard residential rates for property purchases in England and Northern Ireland from 1 April 2025 are:
The first £125,000 of the purchase price is charged at 0%. The next band — from £125,001 to £250,000 — is taxed at 2%. From £250,001 to £925,000, the rate is 5%. The portion between £925,001 and £1,500,000 is charged at 10%, and anything above £1,500,000 is taxed at 12%.
For a practical example, consider a property purchased for £350,000. You pay 0% on the first £125,000 (£0), 2% on the next £125,000 (£2,500), and 5% on the remaining £100,000 (£5,000), giving a total SDLT bill of £7,500. On a £500,000 property, the calculation would be £0 on the first £125,000, plus £2,500 on the next £125,000 at 2%, plus £12,500 on the £250,000 from £250,001 to £500,000 at 5%, totalling £15,000.
First-Time Buyer Relief (from 1 April 2025)
First-time buyers benefit from a more generous SDLT threshold. If you have never owned a property before and are purchasing a home costing £500,000 or less, you pay no SDLT on the first £300,000. The portion between £300,001 and £500,000 is taxed at 5%.
This relief can result in significant savings. A first-time buyer purchasing at £300,000 or below pays no SDLT at all. At £400,000, a first-time buyer would pay 5% on £100,000 (the amount above the £300,000 threshold), totalling £5,000 — compared to £10,000 under the standard rates, a saving of £5,000. However, if the purchase price exceeds £500,000, the relief is lost entirely and standard rates apply to the full amount.
To qualify, all purchasers must be first-time buyers. If you are buying jointly and one person has previously owned a property, the relief cannot be claimed. The property must also be intended as the buyer's main residence.
Additional Property Surcharge
If you are buying a second home, a buy-to-let property, or any additional residential property, you must pay a 5% surcharge on top of the standard SDLT rates. This applies to every band, including the portion that would normally be tax-free. The surcharge kicks in on purchases above £40,000.
For example, buying a second property for £300,000 would incur SDLT of £6,250 on the first £125,000 (0% standard + 5% surcharge), £8,750 on the next £125,000 (2% + 5% = 7%), and £5,000 on the remaining £50,000 (5% + 5% = 10%), giving a total of £20,000. This compares to just £5,000 under the standard rates for a main-residence purchase at the same price — an additional £15,000 in tax.
If you are replacing your main residence, you may be able to reclaim the surcharge, provided the previous property is sold within 36 months. This reclaim is not automatic and must be applied for through HMRC.
Worked Example: Standard Buyer vs First-Time Buyer at £400,000
On a £400,000 property, a standard buyer would pay 0% on the first £125,000 (£0), 2% on the next £125,000 (£2,500), and 5% on the remaining £150,000 (£7,500), totalling £10,000 in SDLT. A first-time buyer purchasing the same property pays 0% on the first £300,000 and 5% on the £100,000 above that threshold, totalling £5,000 — a saving of £5,000. Use our SDLT calculator to run the figures for your own purchase.
Wales and Scotland Have Different Systems
It is important to note that SDLT only applies in England and Northern Ireland. Wales and Scotland each have their own property transaction taxes with different rates and thresholds.
In Wales, the equivalent tax is called Land Transaction Tax (LTT), administered by the Welsh Revenue Authority. LTT has its own set of bands and rates, with the starting threshold for residential properties set at £225,000. Above this, rates range from 6% to 12% depending on the purchase price. Wales does not currently offer a specific first-time buyer relief equivalent to England's SDLT relief.
In Scotland, the tax is known as Land and Buildings Transaction Tax (LBTT), managed by Revenue Scotland. LBTT also has distinct bands, with the nil rate band covering the first £145,000 for standard purchases and £175,000 for first-time buyers. Rates then progress from 2% through to 12% for the highest price band. Scotland also applies an Additional Dwelling Supplement (ADS) of 6% for additional property purchases.
If you are buying a property near the borders of England, Wales, or Scotland, the tax that applies depends on where the property is located, not where you currently live. Always check which system applies before budgeting for your purchase.
For a detailed breakdown of all costs involved in buying a home, including SDLT, see our guide to hidden costs of buying a house in the UK. Or use our Stamp Duty Calculator to get your exact figure in seconds.