What is Stamp Duty Land Tax (SDLT)?
A tax paid when buying property or land in England and Northern Ireland.
Key Facts
- ✓ Applies in England and Northern Ireland
- ✓ Progressive rates from 0% to 12%
- ✓ First £125,000 is tax-free (standard buyers)
- ✓ First-time buyers: £300,000 tax-free on properties up to £500,000
- ✓ 5% surcharge on additional properties
- ✓ Must be paid within 14 days of completion
Current Rates (2025/26)
- ▸ 0% on first £125,000
- ▸ 2% on £125,001-£250,000
- ▸ 5% on £250,001-£925,000
- ▸ 10% on £925,001-£1,500,000
- ▸ 12% above £1,500,000
Explanation
Stamp Duty Land Tax (SDLT) is a tax charged on property and land purchases in England and Northern Ireland. It is a progressive tax, meaning different rates apply to different portions of the purchase price. For residential property in 2025/26, the first £125,000 is tax-free (£300,000 for first-time buyers on properties up to £500,000). Rates then increase in bands: 2% on £125,001 to £250,000, 5% on £250,001 to £925,000, 10% on £925,001 to £1.5 million, and 12% above that. An additional 5% surcharge applies to second homes and buy-to-let properties. SDLT must be paid within 14 days of completion. Scotland and Wales have their own equivalents: LBTT and LTT respectively.
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Stamp Duty Calculator →Other Glossary Terms
The system HMRC uses to collect income tax and National Insurance directly from employees' wages.
National InsuranceA UK tax on earnings and self-employed profits that funds the state pension, NHS, and benefits.
Personal AllowanceThe amount of income you can earn each year before paying income tax — currently £12,570.
Basic Rate (20%)The 20% income tax rate applied to taxable income between £12,571 and £50,270.
Higher Rate (40%)The 40% income tax rate applied to taxable income between £50,271 and £125,140.
Additional Rate (45%)The 45% income tax rate applied to taxable income above £125,140.