Tax Breakdown by Band
| Band | Rate | Tax Due |
|---|
How UK Stamp Duty Land Tax (SDLT) Works
Stamp Duty Land Tax (SDLT) is a tax paid by the buyer when purchasing a property or land in England and Northern Ireland. It applies to both residential and commercial property purchases above certain price thresholds. SDLT is calculated in bands — you only pay the stated rate on the portion of the property price that falls within each band (a marginal tax system).
Use the calculator above to get an instant SDLT figure for any property price and buyer scenario.
Residential SDLT Rates (2025/26)
| Purchase Price Band | SDLT Rate |
|---|---|
| £0 – £250,000 | 0% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| £1,500,001 and above | 12% |
These are the standard residential rates. The first £250,000 of any residential purchase is tax-free for most buyers.
First-Time Buyer Relief
First-time buyers purchasing a residential property for £625,000 or less benefit from an enhanced 0% band on the first £425,000. This means first-time buyers typically pay significantly less SDLT or nothing at all.
| Purchase Price Band | SDLT Rate |
|---|---|
| £0 – £425,000 | 0% |
| £425,001 – £625,000 | 5% |
If the price exceeds £625,000, first-time buyer relief does not apply and standard rates are used on the full purchase price.
Additional Property Surcharge (+3%)
If you are buying an additional residential property (such as a second home or buy-to-let investment), an extra 3% surcharge applies on top of the standard SDLT rates for each band. This applies even if the property price is below £250,000, meaning there is effectively a 3% rate on the first band.
Exceptions: The surcharge does not apply to caravans, houseboats, or properties bought for £40,000 or less. If you are replacing your main residence, you may be able to claim a refund of the surcharge if you sell your previous main home within three years.
Non-UK Resident Surcharge (+2%)
Since April 2021, non-UK residents purchasing residential property in England and Northern Ireland pay an additional 2% surcharge on top of the standard SDLT rates. This applies across all bands. A non-UK resident is generally someone who has not spent at least 183 days in the UK during the 12 months prior to the purchase.
Commercial Property SDLT Rates
Commercial property (including shops, offices, agricultural land, and mixed-use properties) uses a different rate structure:
| Purchase Price Band | SDLT Rate |
|---|---|
| £0 – £150,000 | 0% |
| £150,001 – £250,000 | 2% |
| £250,001 and above | 5% |
The additional dwelling surcharges (first-time buyer, additional home, non-UK resident) do not apply to commercial or mixed-use property.
SDLT vs LBTT vs LTT
Stamp Duty Land Tax (SDLT) applies in England and Northern Ireland. Scotland and Wales have their own devolved property taxes:
Scotland — Land and Buildings Transaction Tax (LBTT)
Administered by Revenue Scotland. Rates and bands differ from SDLT. First-time buyers benefit from the First-Time Buyer Relief which raises the zero-rate threshold. An Additional Dwelling Supplement (ADS) of 6% (from 2024/25) applies to second homes and buy-to-let properties.
Wales — Land Transaction Tax (LTT)
Administered by the Welsh Revenue Authority (WRA). Uses different band thresholds compared to SDLT. First-time buyers pay no tax on properties up to £300,000 under certain conditions. Higher rates for additional properties also apply.
This calculator focuses on SDLT (England and Northern Ireland). If you are buying in Scotland or Wales, consult the relevant tax authority for the correct rates.
Frequently Asked Questions
Who pays stamp duty?
The buyer is responsible for paying SDLT. It must be filed and paid to HM Revenue and Customs (HMRC) within 14 days of completion (or 30 days if filing online). Most solicitors handle this as part of the conveyancing process.
Is stamp duty calculated on the full purchase price?
SDLT is a marginal (banded) tax. You only pay the applicable rate on the portion of the price that falls within each band, not on the entire amount. For example, on a £500,000 residential property: 0% on the first £250,000 and 5% on the remaining £250,000 (£12,500 total).
Do I pay stamp duty on a gift or inheritance?
No, SDLT is only payable on purchases. Gifts, inheritances, and transfers between spouses or civil partners are generally exempt (though Inheritance Tax may apply separately).
Is the stamp duty calculator accurate?
This calculator provides an estimate based on current SDLT rates. Always verify your exact liability with a solicitor or conveyancer, especially for complex transactions involving leases, multiple properties, or corporate buyers.