Stamp Duty Land Tax Explained: Rates, Exemptions & Calculator
A comprehensive guide to SDLT in England and Northern Ireland, including first-time buyer relief, additional property surcharges, and how to calculate what you'll pay.
Current SDLT Rates in England and Northern Ireland
Stamp Duty Land Tax (SDLT) is a tax you pay when buying property or land in England and Northern Ireland above a certain price. The current rates for residential properties are:
£0 to £250,000 — 0% £250,001 to £925,000 — 5% £925,001 to £1,500,000 — 10% Over £1,500,000 — 12%
These rates apply to the portion of the purchase price within each band, not the entire price. So for a £300,000 property, you'd pay 0% on the first £250,000 and 5% on the remaining £50,000, giving a total SDLT bill of £2,500.
First-Time Buyer Relief
First-time buyers benefit from generous SDLT relief. If you're buying your first home:
No SDLT on properties up to £425,000 5% on the portion between £425,001 and £625,000
Properties over £625,000 don't qualify for first-time buyer relief, and you'd pay the standard rates instead.
For example, a first-time buyer purchasing a property for £500,000 would pay 5% on £75,000 (the amount above £425,000), giving an SDLT bill of £3,750. A non-first-time buyer would pay £12,500 for the same property.
Additional Property Surcharge
If you're buying an additional property (such as a buy-to-let or second home), you'll pay an extra 3% surcharge on top of the standard rates. This applies to the entire purchase price.
So for a £300,000 buy-to-let property, you'd pay: standard SDLT of £2,500 plus the 3% surcharge of £9,000, giving a total of £11,500.
There are some exceptions — for example, if you're replacing your main residence, you may be able to claim a refund of the surcharge. The rules can be complex, so it's worth getting professional advice if you're unsure whether the surcharge applies to your purchase.