England Stamp Duty Guide
The complete guide to Stamp Duty Land Tax (SDLT) in England.
£125k
Nil-rate threshold
£300k
FTB nil-rate
5%
Additional surcharge
HMRC
Tax authority
In this article
Key Takeaways
- London generates 37% of all UK SDLT (£5.5B of £13.9B total), where the capital dominates property tax revenue
- 2024-25 SDLT receipts rose 20% to £13.9B driven by surcharge increase and market recovery
- England + London + South = 86% of total UK SDLT receipts, with the North and Midlands contributing only 14%
- 1.05M residential transactions completed in 2024-25, a 20% increase from previous year
- 14-day SDLT filing deadline is strictest in UK; Scotland and Wales allow 30 days
- First-time buyer relief threshold of £300,000 saves up to £5,000 compared to standard rates
- 5% additional property surcharge generates £3.2B annually, a major revenue source for government
What is SDLT?
Stamp Duty Land Tax (SDLT) is the property transaction tax charged on purchases of land and property in England. It's administered by HM Revenue & Customs (HMRC) and must be paid within 14 days of completion. Use our England SDLT calculator to estimate your tax liability instantly.
Northern Ireland also uses SDLT with the same rates and rules as England. Scotland and Wales have their own separate systems (LBTT and LTT respectively).
Current SDLT Rates (January 2026)
Following the April 2025 changes, these are the current England SDLT rates for residential SDLT in England:
Standard Residential Rates
| Band | Rate |
|---|---|
| £0 - £125,000 | 0% |
| £125,001 - £250,000 | 2% |
| £250,001 - £925,000 | 5% |
| £925,001 - £1,500,000 | 10% |
| Over £1,500,000 | 12% |
First-Time Buyer Rates
| Band | Rate |
|---|---|
| £0 - £300,000 | 0% |
| £300,001 - £500,000 | 5% |
| Over £500,000 | No relief |
Additional Property Rates (+5%)
| Band | Rate |
|---|---|
| £0 - £125,000 | 5% |
| £125,001 - £250,000 | 7% |
| £250,001 - £925,000 | 10% |
| £925,001 - £1,500,000 | 15% |
| Over £1,500,000 | 17% |
Key Features of England SDLT
First-Time Buyer Relief
No tax up to £300,000, saving up to £5,000
36-Month Refund Rule
Reclaim surcharge if you sell old home within 3 years
14-Day Payment Deadline
SDLT must be paid within 14 days of completion
Non-Resident Surcharge
Additional 2% for non-UK residents
How to Pay SDLT
Your solicitor or conveyancer handles the SDLT payment process:
- They calculate the tax due based on your purchase
- They submit an SDLT return to HMRC
- They pay the tax from funds held from the transaction
- HMRC issues a certificate allowing Land Registry registration
Current SDLT Rate Bands (April 2025 onwards)
Following April 2025 tax changes, England uses a progressive banded system for Stamp Duty Land Tax. You pay different rates on different portions of the property price, similar to income tax.
The standard residential SDLT rates are:
| Property Price Band | SDLT Rate | Tax on Band |
|---|---|---|
| £0 - £125,000 | 0% | £0 |
| £125,001 - £250,000 | 2% | Up to £2,500 |
| £250,001 - £925,000 | 5% | Up to £33,750 |
| £925,001 - £1,500,000 | 10% | Up to £57,500 |
| Over £1,500,000 | 12% | No upper limit |
Worked Example: £350,000 Property
Here's how SDLT is calculated for a £350,000 property purchase in England:
- First £125,000: £125,000 × 0% = £0
- Next £125,000 (£125,001 to £250,000): £125,000 × 2% = £2,500
- Remaining £100,000 (£250,001 to £350,000): £100,000 × 5% = £5,000
- Total SDLT due: £0 + £2,500 + £5,000 = £7,500
First-Time Buyer Relief in England
First-time buyers in England benefit from generous stamp duty relief, designed to help people get on the property ladder. This relief provides a zero-rate band up to £300,000 - significantly higher than the standard £125,000 threshold.
FTB Relief Rates
| Property Price Band | FTB Rate | Saving vs Standard |
|---|---|---|
| £0 - £300,000 | 0% | Up to £5,000 |
| £300,001 - £500,000 | 5% | Standard rate applies |
| Over £500,000 | No relief available | Pay standard rates |
Who Qualifies?
To qualify for first-time buyer relief in England, you must meet all of these criteria:
- You must never have owned a freehold or leasehold residential property anywhere in the world
- The property purchase price must be £500,000 or less (no relief above this threshold)
- You must intend to occupy the property as your main residence (not buy-to-let or investment)
- If buying with others, all purchasers must be first-time buyers to qualify
Maximum Saving: £5,000
The maximum FTB relief saving is £5,000. This is achieved on any property priced between £300,000 and £500,000. Below £300,000, you save the full SDLT that would otherwise be due on the portion between £125,000 and £300,000.
Higher Rates for Additional Properties
When buying an additional residential property in England, you pay a 5% surcharge on top of the standard SDLT rates. This applies across all price bands, significantly increasing the total tax bill.
When Does the 5% Surcharge Apply?
The additional property surcharge applies when:
- You already own one or more residential properties worth £40,000 or more
- You're purchasing a second home, holiday home, or investment property
- You're buying a buy-to-let property
- You're buying a new main residence before selling your existing one
- Any additional dwelling, including properties held through companies
Additional Property Rates
| Property Price Band | Standard Rate | Additional Property Rate |
|---|---|---|
| £0 - £125,000 | 0% | 5% |
| £125,001 - £250,000 | 2% | 7% |
| £250,001 - £925,000 | 5% | 10% |
| £925,001 - £1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
36-Month Refund Window
If you paid the 5% surcharge because you bought a new main residence before selling your previous one, you can claim a refund of the surcharge if you sell your old property within 36 months of buying the new one.
The refund claim must be made within 12 months of selling the previous property or within 12 months of filing the original SDLT return, whichever is later.
Non-Resident Surcharge
Since April 2021, overseas buyers purchasing residential property in England face an additional 2% surcharge on top of all other SDLT rates. This non-resident surcharge applies in addition to any additional property surcharge.
Who is Considered Non-Resident?
You're considered a non-UK resident for SDLT purposes if you've been outside the UK for more than 183 days in the 12 months before the property purchase. The rules apply to:
- Individuals who are not UK tax residents
- Companies incorporated outside the UK
- Trusts where the settlor or beneficiaries are non-resident
- Joint purchases where at least one buyer is non-resident
Combined Surcharges Example
A non-UK resident buying an additional property in England would face both surcharges:
£300,000 Additional Property (Non-Resident Buyer)
- Standard SDLT: £5,000
- Additional property surcharge (5%): £15,000
- Non-resident surcharge (2%): £6,000
- Total SDLT: £26,000 (8.67% effective rate)
How England Compares to Scotland and Wales
Each UK nation has devolved control over property transaction taxes, leading to different rates and thresholds. For detailed information on the Scottish system, see our Scotland LBTT guide, or compare both systems side by side on our England vs Scotland comparison. Here's how England's SDLT compares:
| Feature | England | Scotland | Wales |
|---|---|---|---|
| Tax Name | SDLT | LBTT | LTT |
| Nil Rate | £125,000 | £145,000 | £225,000 |
| FTB Nil Rate | £300,000 | £175,000 | None |
| Add. Property | 5% | 8% | Separate bands (5-17%) |
| Authority | HMRC | Revenue Scotland | WRA |
| Filing Deadline | 14 days | 30 days | 30 days |
Tax Comparison at Key Price Points
| Property Price | England SDLT | Scotland LBTT | Wales LTT |
|---|---|---|---|
| £300,000 | £5,000 | £4,600 | £4,500 |
| £500,000 | £15,000 | £23,350 | £18,000 |
England tends to be cheaper for higher-value properties (over £325,000) but Wales offers the best deal for properties under £225,000.
SDLT Payment Process
The SDLT payment and filing process is handled by your solicitor or licensed conveyancer. However, it's important to understand the timeline and your responsibilities.
14-Day Deadline from Completion
Critical Timeline
SDLT returns must be filed with HMRC and payment must be made within 14 days of the completion date (the day you legally become the owner). This is the shortest filing deadline in the UK - Scotland and Wales both allow 30 days.
Late filing triggers automatic penalties: £100 initially, rising to £200 after 3 months, with additional daily penalties for prolonged delays.
How Your Solicitor Files SDLT
- Calculate the tax: Your solicitor determines the exact SDLT due based on the purchase price, your buyer status (FTB, additional property, non-resident), and applicable reliefs.
- Complete the SDLT return: They submit form SDLT1 online to HMRC with full details of the transaction.
- Pay HMRC: Payment is made electronically from the funds you provided for the purchase (SDLT is included in your completion funds).
- Receive SDLT5 certificate: HMRC issues a certificate (usually within 2-3 weeks) confirming payment, which is required to register the property with the Land Registry.
- Complete Land Registry registration: Your solicitor submits the SDLT5 to the Land Registry to complete your legal ownership.
What You Need to Provide
To ensure timely filing, provide your solicitor with:
- Proof of your residential status (UK resident or non-resident)
- Evidence of first-time buyer status (if applicable)
- Details of other properties you own (for additional property surcharge assessment)
- National Insurance number (required for SDLT return)
- Sufficient funds to cover SDLT on completion day
SDLT is Paid from Completion Funds
When your solicitor requests completion funds, this total includes the SDLT amount. You don't pay HMRC directly - your solicitor pays from the pooled transaction funds and provides you with confirmation.
Frequently Asked Questions About England Stamp Duty
What is the stamp duty threshold in England?
The stamp duty threshold in England is £125,000 for standard residential purchases. This means you pay 0% SDLT on the first £125,000 of any property purchase. First-time buyers get a higher threshold of £300,000, and properties above these thresholds are taxed only on the amount exceeding the threshold using progressive bands.
How much stamp duty do I pay on a £300,000 house?
On a £300,000 house in England, standard buyers pay £5,000 in SDLT (0% on first £125k, 2% on next £125k = £2,500, and 5% on the final £50k = £2,500). First-time buyers pay £0 because the entire £300,000 falls within their zero-rate band. Buyers purchasing an additional property pay £20,000 due to the 5% surcharge applied across all bands.
Is stamp duty different in London?
No, stamp duty rates are the same throughout England, including London. All of England uses the same SDLT rates and thresholds administered by HMRC. However, because London property prices are significantly higher than the national average, London buyers typically pay more SDLT in absolute terms, and fewer qualify for first-time buyer relief due to the £500,000 price limit.
When did stamp duty rates change in England?
The most recent major change to England's stamp duty rates occurred in April 2025, when the nil-rate threshold returned to £125,000 (from the temporary £250,000 threshold introduced during the COVID-19 pandemic). The first-time buyer relief threshold of £300,000 was maintained. Previous significant changes included the introduction of the 5% additional property surcharge in April 2016 and the 2% non-resident surcharge in April 2021.
Do first-time buyers pay stamp duty in England?
First-time buyers in England pay no stamp duty on properties up to £300,000, making this one of the most generous FTB reliefs in the UK. For properties between £300,001 and £500,000, they pay 5% only on the portion above £300,000. Properties over £500,000 receive no relief and pay standard SDLT rates. This relief can save up to £5,000 and applies only to main residences, not buy-to-let or investment properties.
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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 Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.