SDLT: Stamp Duty Land Tax
Stamp Duty Land Tax (SDLT) is the property and land transaction tax paid in England and Northern Ireland when you buy property or land above a certain price threshold.
Last verified: April 2026 | Source: GOV.UK
Key Takeaways
- •SDLT applies in England and Northern Ireland only. Scotland uses LBTT; Wales uses LTT.
- •The standard nil-rate threshold is £125,000 (from 1 April 2025). Below this, no SDLT is due.
- •First-time buyers have a higher nil-rate threshold of £300,000 on properties up to £500,000.
- •SDLT return and payment must be made within 14 days of completion.
- •Rates are progressive — you only pay each rate on the portion of price within each band.
In this article
Definition
Stamp Duty Land Tax (SDLT) is a tax on property and land transactions in England and Northern Ireland. The abbreviation SDLT is used interchangeably with "stamp duty" in everyday speech, though technically stamp duty was replaced by SDLT under the Finance Act 2003.
You pay SDLT when you buy a property or land for more than the nil-rate threshold. The tax is calculated on increasing portions of the price using a tiered (progressive) rate system — similar in structure to income tax bands.
Where SDLT Applies
SDLT applies to property and land transactions in England and Northern Ireland. It applies when you:
- •Buy a freehold property
- •Buy a new or existing leasehold
- •Buy a property through a shared ownership scheme
- •Have land or property transferred to you in exchange for payment
Different rules in Scotland and Wales
Scotland has used Land and Buildings Transaction Tax (LBTT) since 1 April 2015. Wales has used Land Transaction Tax (LTT) since 1 April 2018.
Current SDLT Rates (from 1 April 2025)
For a single residential property (standard rates):
| Property value | SDLT rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
Worked example: £295,000 purchase
- 0% on first £125,000 = £0
- 2% on next £125,000 = £2,500
- 5% on final £45,000 = £2,250
- Total SDLT: £4,750
First-Time Buyer Rates
First-time buyers purchasing a property worth £500,000 or less pay reduced rates:
| Property value | FTB rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
If the property costs more than £500,000, standard rates apply with no FTB relief.
Additional Properties
If buying an additional residential property (second home, buy-to-let) worth £40,000 or more, the higher rates surcharge applies. From 1 April 2025, this adds 5% to each band up to a top rate of 17%.
A non-UK resident surcharge of 2% also applies on residential purchases by buyers who have not been UK-resident for at least 183 days in the 12 months before purchase.
How and When to Pay
You must file an SDLT land transaction return with HMRC and pay any tax due within 14 days of completion (the effective date).
In practice, your solicitor or conveyancer files the return and pays the tax on your behalf on the day of completion, adding it to their fees. Penalties and interest apply if the return is not filed and paid on time.
Official Government Source
For the official definition, rates, and filing guidance, see:
Stamp Duty Land Tax — GOV.UKHM Revenue and Customs (HMRC) | Last updated by GOV.UK: October 2024
Frequently Asked Questions
What does SDLT stand for?
SDLT stands for Stamp Duty Land Tax. It is the property and land transaction tax paid in England and Northern Ireland when buying property above the nil-rate threshold.
Is stamp duty the same as SDLT?
In common usage, yes. 'Stamp duty' is the informal term most people use; SDLT is the correct legal name introduced by the Finance Act 2003. Scotland and Wales have their own separate property taxes (LBTT and LTT).
Do I pay SDLT on a gift?
If a property is given to you as a pure gift with no payment (no money and no mortgage debt assumed), SDLT does not apply. However, if you take on any mortgage or make any payment as part of the deal, SDLT is calculated on that consideration.
In this article
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Calculate My Stamp Duty UK to help buyers understand the complex world of property transaction taxes.