Stamp duty and property tax: SDLT and LTT

What property tax is and who pays it

When you buy property or land in England, Wales or Northern Ireland, you usually pay a tax based on the price. Which tax depends on where the property is: Stamp Duty Land Tax (SDLT) in England and Northern Ireland, and Land Transaction Tax (LTT) in Wales. The buyer pays, not the seller.

Both work in slices, like income tax: each rate applies only to the part of the price within its band. Your circumstances matter too, because first-time buyers can pay less, while buyers of additional homes and some overseas buyers pay more.

The rates below apply as at November 2026 and can change, and your conveyancer confirms the figure for your purchase.

England and Northern Ireland: Stamp Duty Land Tax

Standard residential SDLT rates (from 1 April 2025) are:

• 0% on the first £125,000
• 2% on the portion from £125,001 to £250,000
• 5% on the portion from £250,001 to £925,000
• 10% on the portion from £925,001 to £1.5 million
• 12% on the portion above £1.5 million

Example: on a £300,000 home in England or Northern Ireland, you pay nothing on the first £125,000, 2% on the next £125,000 (£2,500) and 5% on the final £50,000 (£2,500), so £5,000 in total.

First-time buyer relief

You are a first-time buyer if you have never owned a home, or a share in one, anywhere in the world, and you will live in the property as your main home. If you are buying with someone else, every buyer must qualify. First-time buyers in England and Northern Ireland pay:

• 0% on the first £300,000
• 5% on the portion from £300,001 to £500,000

If the price is over £500,000, there is no relief at all and the standard rates apply to the whole price.

Example: a first-time buyer of a £400,000 flat pays nothing on the first £300,000 and 5% on the remaining £100,000, so £5,000, half the £10,000 due at standard rates. At £510,000 the relief is lost: nothing on the first £125,000, £2,500 on the next £125,000 and 5% on the final £260,000 (£13,000), so £15,500.

Additional homes and buy-to-let

If you will own more than one residential property at the end of the day of your purchase, for example a buy-to-let flat or a holiday home, you usually pay the higher rates. These add 5 percentage points to every band: 5% on the first £125,000, 7% from £125,001 to £250,000, 10% from £250,001 to £925,000, 15% from £925,001 to £1.5 million and 17% above. They do not apply to purchases below £40,000, and property worth less than £40,000 does not count towards the test.

Homes you own anywhere in the world count, and spouses and civil partners are treated as buying together even if only one is buying. If any joint buyer would pay the higher rates, the whole purchase does.

Example: on a £300,000 buy-to-let flat in England, you pay 5% on the first £125,000 (£6,250), 7% on the next £125,000 (£8,750) and 10% on the final £50,000 (£5,000), so £20,000 in total, £15,000 more than for a single home.

If you are replacing your main home, the higher rates do not apply if you sell the old one before, or on the same day as, you complete your purchase. If you buy first, you pay the higher rates on completion, but you can usually claim the extra back if you sell the old home within three years. Claim within 12 months of the sale or of the return's filing date, whichever is later.

Buyers who are not UK resident

In England and Northern Ireland, buyers who are not UK resident usually pay a further 2% surcharge on residential purchases. You are usually treated as non-resident if you were not present in the UK for at least 183 days in the 12 months before your purchase, and if one joint buyer is non-resident, the whole purchase is usually treated as non-resident. The exception is a married couple or civil partners who buy together and live together: if one of them is UK resident, both are treated as UK resident.

The surcharge is added on top of any other rates. Example: a non-resident buyer who owns no other property buys a £300,000 home in England. Standard SDLT is £5,000 and the 2% surcharge on £300,000 adds £6,000, so £11,000 in total. If the same buyer also owns a home abroad, the higher rates apply too: £20,000 plus £6,000, so £26,000.

You may be able to claim the surcharge back if you are present in the UK for at least 183 days in a continuous 365 day period falling between 364 days before and 365 days after your purchase.

Wales: Land Transaction Tax

The main residential rates of LTT are:

• 0% on the first £225,000
• 6% on the portion from £225,001 to £400,000
• 7.5% on the portion from £400,001 to £750,000
• 10% on the portion from £750,001 to £1.5 million
• 12% on the portion above £1.5 million

Example: on a £300,000 home in Wales, you pay nothing on the first £225,000 and 6% on the remaining £75,000, so £4,500 in total. There is no first-time buyer relief in Wales.

Higher residential rates apply to additional homes (from 11 December 2024): 5% on the first £180,000, 8.5% from £180,001 to £250,000, 10% from £250,001 to £400,000, 12.5% from £400,001 to £750,000, 15% from £750,001 to £1.5 million and 17% above. Example: on a £300,000 buy-to-let home, you pay 5% on the first £180,000 (£9,000), 8.5% on the next £70,000 (£5,950) and 10% on the final £50,000 (£5,000), so £19,950.

As in England, the higher rates do not apply below £40,000. If you are replacing your main home, they do not apply if you sell the old one before, or on the same day as, you complete; if you buy first, you pay them on completion and can usually claim a refund if you sell the old home within three years.

Commercial and mixed-use property

Shops, offices, land and mixed-use property, such as a shop with a flat above, use non-residential rates:

• SDLT: 0% up to £150,000, 2% from £150,001 to £250,000 and 5% above
• LTT: 0% up to £225,000, 1% from £225,001 to £250,000, 5% from £250,001 to £1 million and 6% above

Example: on a £400,000 shop in England, you pay nothing on the first £150,000, 2% on the next £100,000 (£2,000) and 5% on the final £150,000 (£7,500), so £9,500. Where VAT is charged on the price, the tax is worked out on the VAT-inclusive price; see VAT on commercial property.

When the tax is paid and who files the return

In England and Northern Ireland, the SDLT return must be filed and the tax paid within 14 days of completion, the day the purchase money is paid and you get the keys. A return is usually needed even when no tax is due, for example when a first-time buyer pays £250,000. In Wales, the return and the tax are due within 30 days of the day after completion. Late returns and payments can lead to penalties and interest.

Your conveyancer usually files the return and pays the tax for you on the day of completion, using money you send beforehand. The return is still your responsibility, so check the figures and answer questions about other properties fully. For SDLT, HMRC then issues a certificate (the SDLT5), which is needed to register you as the owner at HM Land Registry.

Next steps

Estimate your tax with the stamp duty calculator, then get an instant quote that shows the property tax estimate alongside the legal fees. Tell your conveyancer about every property owned by you, anyone buying with you and your spouse or civil partner, wherever it is. Companies, trusts, shared ownership and linked purchases have their own rules and may need specialist advice.