Gov.uk Stamp Duty Overview: A Plain-English Walkthrough
The official gov.uk page on Stamp Duty Land Tax (SDLT) is the authoritative source for homebuyers in England and Northern Ireland. This guide summarises that page in plain English, explains the current rate bands, reliefs, and deadlines, and embeds our calculator so you can work out your own figure in seconds.
In this article
What Gov.uk Says About SDLT
Stamp Duty Land Tax (SDLT) is a tax you pay when you buy property or land in England and Northern Ireland above certain price thresholds. The tax is administered by HM Revenue and Customs (HMRC) and the rules are published on gov.uk/stamp-duty-land-tax.
Gov.uk is the single authoritative source for SDLT rules. Our goal on this page is to give you a plain-English walkthrough of what gov.uk says, with tables, worked examples, and our own calculator embedded so you can check your specific purchase in seconds.
Scotland and Wales have their own property taxes
SDLT applies in England and Northern Ireland only. Since 1 April 2018, Scotland and Wales have had their own devolved property taxes:
- Scotland: Land and Buildings Transaction Tax (LBTT), administered by Revenue Scotland
- Wales: Land Transaction Tax (LTT), administered by the Welsh Revenue Authority
If your property is in Scotland or Wales, see our Scotland LBTT guide or Wales LTT guide.
When does SDLT apply?
According to gov.uk, you pay SDLT when you:
- Buy a freehold property
- Buy a new or existing leasehold
- Buy a property through a shared ownership scheme
- Receive land or property in exchange for some form of payment, for example when you take on a mortgage as part of the transfer
The tax is calculated based on what gov.uk calls the "chargeable consideration" (broadly, the price you pay), which can include more than just cash. We cover this in detail in the consideration section below.
The Three Key Thresholds
Gov.uk highlights three headline thresholds that determine whether SDLT is due and at what rates:
Standard buyers pay no SDLT on the first £125,000 of a residential purchase. SDLT only starts on the portion above this amount.
Eligible first-time buyers pay 0% up to £300,000, and 5% on the portion from £300,001 to £500,000. The relief disappears entirely above £500,000.
For commercial property or land, the nil-rate band is £150,000. This also applies to mixed-use transactions.
Residential Rate Bands and Worked Example
SDLT works like income tax: each rate applies only to the portion of the price that falls within that band, not to the full purchase price. The current standard residential rates from gov.uk are:
| Portion of property price | SDLT rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Source: gov.uk/stamp-duty-land-tax/residential-property-rates (verified April 2026)
Worked example: £295,000 purchase
This is the same example gov.uk uses to illustrate the progressive structure. A standard buyer purchases a house for £295,000:
| Band | Portion | Rate | Tax |
|---|---|---|---|
| Nil rate | £0 to £125,000 | 0% | £0 |
| 2% band | £125,001 to £250,000 (£125,000) | 2% | £2,500 |
| 5% band | £250,001 to £295,000 (£45,000) | 5% | £2,250 |
| Total SDLT | £4,750 | ||
Source: gov.uk worked example, residential-property-rates. Note that £4,750 on a £295,000 purchase is an effective rate of about 1.6%, not 5%, because the higher rates only apply to the portions above each threshold.
First-Time Buyer Relief
First-time buyers in England and Northern Ireland can claim a relief that increases the nil-rate band and reduces the 2% band, resulting in a lower SDLT bill. To qualify, you must never have owned a residential property in the UK or abroad before.
| Portion of property price | FTB rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Above £500,000 | Relief not available |
The £500,000 cliff edge
If the purchase price is above £500,000, the first-time buyer relief is lost entirely and standard rates apply from the first pound. This means a first-time buyer buying at £501,000 pays the same SDLT as a standard buyer at that price. There is no partial relief above £500,000.
FTB saving examples
For a full explanation, see our first-time buyer stamp duty guide.
Additional Property and Non-UK Resident Surcharges
Additional property surcharge: +5%
If buying a new residential property means you will own more than one residential property, you must pay an extra 5% on top of the standard rates for every band. This is commonly called the "higher rates for additional dwellings" (HRAD) or simply the additional property surcharge.
| Portion of property price | Standard rate | Additional property rate |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1,500,000 | 10% | 15% |
| Above £1,500,000 | 12% | 17% |
Replacing your main residence: 36-month window
You are exempt from the additional property surcharge if you are replacing your main residence and you sell your previous main home within 36 months of completing the new purchase. If you have already paid the higher rates because you hadn't yet sold your previous home, you can claim a refund from HMRC once the old property is sold within that 36-month window.
Non-UK resident surcharge: +2%
If you are not a UK resident (broadly: not present in the UK for at least 183 days in the 12 months before the purchase completion), you pay an additional 2% surcharge on top of whatever other rates apply. This surcharge:
- Applies on top of standard residential rates
- Applies on top of first-time buyer rates
- Applies on top of the additional property surcharge (so a non-UK resident buying an additional property pays standard rates + 5% + 2%)
- Can be refunded if you subsequently meet the UK residence tests within a specified period
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What Counts as the Price You Pay SDLT On
Gov.uk refers to the amount SDLT is calculated on as the "chargeable consideration." This is usually the cash purchase price, but it can be broader than that. The gov.uk overview page makes clear that consideration includes:
Counts as consideration
- +Cash payment (the standard property price)
- +Goods transferred as part of the deal
- +Works or services provided instead of money
- +Debt taken over by the buyer (e.g. assuming the seller's mortgage)
- +Release of a debt the seller owes the buyer
Does not count as consideration
- -Chattels (personal belongings like furniture, cars)
- -Items that qualify as exempt fixtures (specific rules apply)
Debt transfer example
A practical example from gov.uk: if someone transfers a property to you and you take over their outstanding mortgage of £150,000, the chargeable consideration is £150,000, even if no cash changed hands. You would pay SDLT on that £150,000 as if it were the purchase price.
Fixtures and fittings
Items like carpets, curtains, and freestanding appliances are typically treated as chattels (not fixtures) and are excluded from SDLT consideration. However, the split between fixtures (part of the property) and chattels must be genuine; HMRC will challenge artificially inflated chattel allocations that appear designed to reduce the property price for SDLT purposes.
Reliefs and Exemptions
Gov.uk distinguishes between reliefs (which reduce the SDLT bill but still require you to file a return) and exemptions (where no return is needed at all).
Reliefs: you must file a return to claim these
Multiple dwellings relief (MDR) has been abolished
Gov.uk explicitly states: "You can no longer claim SDLT relief for multiple dwellings." MDR was removed from 1 June 2024. If you are purchasing multiple properties in a single transaction, you should take professional advice on the SDLT position.
The 12 reliefs currently available according to gov.uk are:
Exemptions: no SDLT return required
In the following situations, the transaction is fully exempt from SDLT and you do not need to file a return with HMRC at all:
- No money or payment changes hands
- Property is left to you in a will
- Transfer is part of a divorce or civil partnership dissolution
- You are buying a freehold property for under £40,000
- You are taking on a lease with 7 or more years remaining where the premium is below £40,000 AND the annual rent is below £1,000
- You are taking on a lease with less than 7 years remaining where the amount is below the relevant residential or non-residential threshold
- You are using a Sharia-compliant alternative finance arrangement (the finance provider pays SDLT rather than the individual)
Source: gov.uk/stamp-duty-land-tax/reliefs-and-exemptions (verified April 2026)
How to Pay and File
From completion date (the effective date of the transaction)
Most buyers use a conveyancing solicitor who files online through HMRC Stamp Taxes Online
Unrepresented buyers can file a paper SDLT1 return directly with HMRC
Do you have to file even if no tax is due?
In most cases, yes. If the transaction is above the relevant threshold, you must file an SDLT return even if the result is zero SDLT due (for example, because you qualify for a relief or the purchase price falls entirely within the nil-rate band). The only situations where no return is needed are the specific exemptions listed above.
Penalties for late filing
| How late | Penalty |
|---|---|
| Up to 3 months late | £100 |
| More than 3 months late | £200 |
| 12 or more months late | Tax-based penalty (up to full tax due) |
| Any late payment | Interest charges from day after deadline |
In practice, the vast majority of homebuyers never deal with this directly: their solicitor handles the return and payment as part of the conveyancing process, deducting the SDLT from the completion funds on the day. If you are buying without a solicitor, make sure you set a reminder for the 14-day deadline.
Official source: gov.uk/stamp-duty-land-tax and gov.uk SDLT return guidance
Deeper Guides on This Site
The gov.uk overview gives you the headline rules. If you need to go deeper on any aspect, these guides cover each topic in full detail:
Try Our Calculator
Enter your purchase price and buyer type below. The calculator uses the same current rates published on gov.uk and gives you a full band-by-band breakdown so you can see exactly how the figure is arrived at.
Your Results
Stamp Duty to Pay
£5,000
Effective tax rate: 1.67%
Tax Breakdown
| Band | Rate | Tax |
|---|---|---|
| £0 - £125,000 | 0% | £0 |
| £125,001 - £250,000 | 2% | £2,500 |
| £250,001 - £300,000 | 5% | £2,500 |
| Total | £5,000 | |
£0 - £125,000
0%
£0
£125,001 - £250,000
2%
£2,500
£250,001 - £300,000
5%
£2,500
Total
£5,000
Tax by Band
Added to 25-Year Mortgage
£29/month
Based on 5% interest rate, added to loan amount
Applies to England and Northern Ireland only. For Scotland use our Scotland LBTT calculator. For Wales use our Wales LTT calculator.
Frequently Asked Questions
Is this page different from the official gov.uk page?
Yes, in presentation but not in substance. The official page at gov.uk/stamp-duty-land-tax is the authoritative source. This page summarises that content in plain English and adds our calculator, worked examples, and links to deeper guides. For tax or legal decisions, always verify directly on gov.uk or with a qualified professional.
Does SDLT apply if I am buying in Scotland or Wales?
No. SDLT only applies in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT), administered by Revenue Scotland. Wales uses Land Transaction Tax (LTT), administered by the Welsh Revenue Authority. Both have different rate structures and thresholds from SDLT. See our Scotland LBTT guide and Wales LTT guide for details.
Can I trust third-party stamp duty calculators?
Reputable third-party calculators use the same official rate bands as HMRC and are generally reliable for estimates. To verify, enter the same purchase price into our calculator and into the official tool at gov.uk. The totals should match. Where they may differ: complex scenarios involving leasehold NPV calculations, linked transactions, or unusual reliefs. For anything complex, your solicitor or a tax adviser is the right person to consult.
What is the 14-day SDLT deadline and what happens if I miss it?
You must file your SDLT return and pay any tax due within 14 days of the "effective date" of the transaction, which is usually the completion date. Missing this deadline results in an automatic £100 penalty for filings up to 3 months late, rising to £200 for more than 3 months. If the return is 12 or more months late, HMRC can impose a tax-based penalty equal to up to the full amount of SDLT due. Interest also accrues on unpaid tax from the day after the deadline.
I already own a property. Do I definitely pay the 5% surcharge on a new purchase?
Not necessarily. The key exception is if you are replacing your main residence: if you sell your previous home within 36 months of completing the new purchase, you are exempt from the additional property surcharge. If you have already paid at the higher rates and then sell your previous home within the 36-month window, you can apply to HMRC for a refund of the surcharge paid.
Is SDLT still the same as "stamp duty"?
People commonly use "stamp duty" as shorthand for SDLT, and in everyday conversation the terms are interchangeable for residential property in England and Northern Ireland. Technically, "stamp duty" refers to the older paper-based tax that SDLT replaced in December 2003. SDLT is a modern, self-assessed electronic tax with its own legislation (Finance Act 2003). The gov.uk URL slug "stamp-duty-land-tax" reflects this history.
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.
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