Stamp Duty Land Tax (SDLT) is the tax you pay when you buy a property in England or Northern Ireland. The amount depends on the property's price and your situation as a buyer, whether you’re a first-time buyer, moving home, buying a second property, or purchasing from overseas.
This guide explains how SDLT actually works, what the “bands” mean, and how the rules shift depending on your circumstances.
What stamp duty is (and why it feels confusing)
People tend to get stuck on stamp duty because the rules change depending on who you are, and the bands don’t work like normal tax brackets. You don’t pay one flat rate; you pay different rates on different slices of the price.
On top of that, there are extra rules if you’re buying a second home, replacing a main residence, or you’re not a UK resident. It’s a lot to track, especially when you’re trying to work out your budget.
So think of stamp duty in three steps:
- Start with the basic SDLT bands
- Check whether any special rules apply to you
- Apply surcharges or reliefs (e.g., second homes +3%, first-time buyer relief, non-resident +2%)
The standard stamp duty bands (England & NI)
These apply to most home movers buying their main residence:
| Portion of purchase price | SDLT rate |
|---|---|
| Up to £250,000 | 0% |
| £250,001–£925,000 | 5% |
| £925,001–£1.5m | 10% |
| Above £1.5m | 12% |
You only pay each rate on the relevant slice.
First-time buyers
If you’re buying your very first home and you’ve never owned a property anywhere in the world, you get a special relief:
First-time buyer SDLT rates
- 0% on the first £425,000
- 5% on the portion from £425,001 to £625,000
- No relief at all if the property costs over £625,000
Example
- Buying for £400,000 → £0 SDLT
- Buying for £550,000
- First £425k → 0%
- £125k → 5% (£6,250 SDLT)
Common confusion
- If one buyer is a first-timer and the other isn’t, you cannot claim the relief.
- Shared ownership has separate rules — you can pay SDLT upfront or in stages.
Home movers (standard buyers)
If you already own and live in your home and you’reselling and buying another one, you pay the standard rates shown earlier — as long as you are replacing your main residence.
No surcharges apply in this situation, even if you still own old investment properties on the side.
When home movers accidentally trigger higher SDLT
- If your sale and purchase don’t complete on the same day.
- If you temporarily own two homes (e.g., buying before selling).
In those cases you may need to pay the 3% surcharge upfront, but you can reclaim it if you sell your old home within 36 months.
Second homes & buy-to-let purchases
If you buy an additional property (not replacing your main residence), you pay:
**Standard SDLT rates
- 3% surcharge on each band**
This applies to:
- Holiday homes
- Buy-to-let properties
- Buying a new home before selling the old one
- Joint purchases where any buyer already owns another home
Example
Buying a £300,000 second home:
- First £250k → 3%
- £50k → 8%
- Total: £11,500 SDLT
Refunds
If the second home was actually a temporary step, e.g., you buy before you sell, you can reclaim the extra 3% within 36 months.
Non-UK resident buyers
If you’re not in the UK for 183 days or more during the 12 months before purchase, you’re classed as a non-resident for SDLT.
You must pay:
**Standard SDLT rates
- 2% non-resident surcharge
- (+3% if it’s also a second home)**
Example
A non-resident buying a second home pays:
- Standard SDLT
- +3% additional property surcharge
- +2% non-resident surcharge
- Total: 5% extra on every band
Key point
You may still qualify as “UK resident” for SDLT even if you live abroad, provided you are in the UK for 183 days during the 12 months after the purchase — meaning residency can be met retrospectively.
Special situations that change the SDLT
Shared ownership
You can either pay SDLT:
- Upfront on the full value, or
- Only on the portion you buy now (but then you may pay more later when staircasing).
Transfers during divorce, separation, or inheritance
These are often exempt from SDLT.
Company purchases
Limited companies generally pay:
- A 3% surcharge automatically, even on their first property
- Different rules apply for £500k+ properties that might trigger the 15% corporate rate (under the “Annual Tax on Enveloped Dwellings” rules)
How to work out what you owe
To get an accurate picture:
- Confirm which buyer type you are
- Check whether you’re replacing your main residence
- Apply the correct reliefs or surcharges
- Calculate each SDLT band separately
Do you need help finding someone to explain your stamp duty position?
If you’re unsure which SDLT rules apply to you, especially with joint buyers, overseas situations or timing delays, a property solicitor can give you a clear answer.
Our UK Property Looker assistant will help you find qualified conveyancers who can explain your SDLT liabilities before you commit.