Stamp Duty (SDLT) Guide UK: Rates, Thresholds & Relief

Stamp Duty Land Tax (SDLT) is one of the largest upfront costs when buying a property in England or Northern Ireland. Whether you are a first-time buyer, moving home, purchasing a second property, or investing in buy-to-let, understanding how SDLT works is essential for budgeting accurately. This guide explains the current rates, reliefs, exemptions, and deadlines for the 2025/26 tax year.

What Is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a tax paid to HMRC when you buy a property or piece of land over a certain price in England and Northern Ireland. It is a progressive tax, meaning different portions of the purchase price are taxed at different rates — similar to how income tax works. You do not pay the highest rate on the entire purchase price, only on the slice that falls within each band.

SDLT only applies in England and Northern Ireland. Scotland and Wales have their own property transaction taxes with different rates and thresholds:

Current SDLT Rates (2025/26)

The standard SDLT rates for residential property purchases in England and Northern Ireland are shown below. These rates apply to anyone who is not a first-time buyer and who is purchasing their only or main residence.

First-Time Buyer Relief

First-time buyers benefit from generous SDLT relief, which can save thousands of pounds. To qualify, you must never have owned a property or a share of a property anywhere in the world. If you are buying jointly, both buyers must be first-time buyers for the relief to apply.

Additional Property Surcharge (+3%)

If you are buying an additional residential property — such as a second home, holiday home, or buy-to-let investment — you must pay an extra 3% on top of the standard SDLT rates. This surcharge applies to each band, including the first £250,000 that would otherwise be at 0%.

Non-Resident Surcharge (+2%)

Since April 2021, non-UK residents purchasing residential property in England and Northern Ireland must pay an additional 2% surcharge on top of the applicable SDLT rates. This surcharge applies in addition to any other surcharges, such as the 3% additional property surcharge.

You are treated as non-UK resident for SDLT purposes if you have not been present in the UK for at least 183 days in the 12 months before the purchase. If you are buying jointly and any buyer is non-UK resident, the surcharge applies to the whole transaction. However, if you become UK resident within 12 months of the purchase, you can apply for a refund of the 2% surcharge.

When Do You Pay SDLT?

SDLT must be paid within 14 days of the completion date of your property purchase. In practice, your solicitor or conveyancer handles the SDLT return and payment on your behalf as part of the conveyancing process. They will submit the return to HMRC and pay the tax from the funds you provide at completion.

If the return is filed late, HMRC may charge penalties and interest. A £100 penalty applies if the return is up to three months late, rising to £200 if more than three months late. Interest is also charged on any unpaid SDLT from the filing deadline. Your solicitor should ensure this is handled promptly, but it is worth checking that it has been done.

You do not pay SDLT on exchange of contracts — it is only due on completion. If you exchange and complete on different dates, the 14-day deadline runs from completion.

SDLT Exemptions

There are several situations where SDLT is not payable or where special rules apply:

• Transfers between spouses or civil partners: Property transfers as part of a divorce settlement or between married couples/civil partners are generally exempt from SDLT, provided there is no outstanding mortgage consideration above the nil-rate band.
• Properties below £40,000: If the total consideration (price) is less than £40,000, no SDLT is due and no return needs to be filed.
• Inheritance: Property received through a will or intestacy is not subject to SDLT, though inheritance tax may apply separately.
• Gifts with no mortgage: If a property is gifted to you and there is no mortgage or other consideration, SDLT is not payable. However, if you take on an existing mortgage as part of the transfer, SDLT may be due on the mortgage amount.
• Crown properties: Certain transactions involving the Crown are exempt.

SDLT and Shared Ownership

If you are buying a property through a shared ownership scheme, you have two options for paying SDLT:

Option 1 — Pay SDLT on the share you are buying: You pay SDLT only on the value of the share you purchase (e.g. 25% of a £300,000 property = £75,000). This is sometimes called a "market value election." However, you will need to pay additional SDLT each time you staircase (buy additional shares) once your total share exceeds 80%.

Option 2 — Pay SDLT on the full market value upfront: You elect to pay SDLT based on the full market value of the property at the time of purchase. This means a larger SDLT bill now, but no further SDLT when you staircase in the future.

First-time buyer relief can apply to shared ownership purchases, which may reduce or eliminate the initial SDLT bill. Your solicitor can advise on which option is most cost-effective for your situation.

SDLT and Remortgaging

The good news for homeowners looking to switch mortgage deals is that remortgaging does not trigger an SDLT liability. When you remortgage, you are replacing one loan with another on the same property — there is no change of ownership and no property transaction, so SDLT does not apply.

This remains the case whether you are switching to a new lender, doing a product transfer with your existing lender, or borrowing additional funds against your home for purposes such as home improvements. SDLT is only triggered when there is a transfer of ownership of land or property, not by changes to the financing arrangements.

However, if you are using additional borrowing to purchase another property (for example, releasing equity to buy a buy-to-let), SDLT will be due on that new purchase — including the 3% additional property surcharge. Read our remortgage guide for more detail on the remortgaging process.

Calculate Your Stamp Duty Bill

Use our free stamp duty calculator to get an instant estimate of your SDLT bill. It covers standard purchases, first-time buyer relief, additional property surcharges, and the non-resident surcharge.

Key Facts at a Glance

When to Get Professional Advice

For straightforward purchases, your solicitor will handle the SDLT return and payment. However, professional advice from a mortgage broker or financial adviser may be valuable if you are dealing with additional property surcharges, shared ownership, mixed-use properties, or complex situations involving trusts or companies. A mortgage broker can also help you factor SDLT into your overall purchase budget and ensure you are getting the best mortgage deal for your circumstances.