Stamp Duty Land Tax

If you buy either property or land in the UK you have to pay Stamp Duty Land Tax (SDLT).

This is charged on all purchases of houses, flats and other land and buildings, and is normally paid directly to your solicitor with your funds for the purchase of the property.

Rates from 1st April 2025

If you’re buying your first home

You can claim a discount (relief) if the property you buy is your first home. You’re eligible if you and anyone else you’re buying with are first time buyers.

The discount you can claim depends on when you purchase the property.

You’ll pay

– no SDLT up to £300,000
– 5% SDLT on the portion from £425.001 to £500,000

Example

You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:

– 0% on the first £300,000 = £0
– 5% on the remaining £200,000 = £10,000
– total SDLT = £10,000

New leasehold sales and transfers

When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the ‘lease premium’) using the rates above.

If the total rent over the life of the lease (known as the ‘net present value’) is more than the SDLT threshold (currently £125,000), you’ll pay SDLT at 1% on the portion over £125,000.

This does not apply to existing (‘assigned’) leases.

Higher rates for additional properties

You’ll usually have to pay 5% on top of SDLT rates if buying a new residential property means you’ll own more than one.

For more info please feel free to contact us or visit the Government site here.

If you’re replacing your main residence

You will not pay the extra 5% SDLT if both of the following apply:

– the property you’re uying is replacing your main residence
– your previous main residence was sold within 36 months of completing your new purchase

If you have not sold your main residence on the day you complete your new purchase, you’ll have to pay higher rates. This is because you own 2 properties.

Check if you’re eligible for a refund of the higher rates of SDLT.

Rates if you’re not a UK resident

If you’re not present in the UK for at least 183 days (6 months) during the 12 months before your purchase you are ‘not a UK resident’ for the purposes of SDLT.

You’ll usually pay a 2% surcharge if you’re buying a residential property in England or Northern Ireland.

You may not have to pay a surcharge on certain properties, transactions or if you’re a particular type of buyer.

Check if you’re eligible for a refund of the surcharge.

If you have to pay the surcharge, you’ll also have to pay any other rates of SDLT that apply, for example:

– if you already own a property and you’re buying an additional property
– if you’re a first time buyer

Use the SDLT calculator to work out how much tax you’ll pay.

Special Rates

There are also a number of different rules used in calculating SDLT in the following situations:
– corporate bodies
– people buying 6 or more residential properties in one transaction
– shared ownership properties
– multiple purchases or transfers between the same buyer and seller (‘linked purchases’)
– purchases that mean you own more than one property
– companies and trusts buying residential property

If you believe you fall into one of these categories, we would again encourage you to review the government website, or seek further guidance.

For more information on how to calculate your Stamp Duty Land Tax, please visit: Stamp Duty Land Tax.