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.
Try the calculator: Use our free calculator to see how stamp duty land tax (sdlt) affects your finances.
Stamp Duty Calculator →Other Glossary Terms
The system HMRC uses to collect income tax and National Insurance directly from employee 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.
Frequently Asked Questions
What does stamp duty land tax (sdlt) mean?
A tax paid when buying property or land in England and Northern Ireland.
Why does stamp duty land tax (sdlt) matter?
Understanding stamp duty land tax (sdlt) helps you make informed financial decisions and ensure you pay the correct amount of tax. Getting it wrong could mean overpaying or underpaying HMRC, which may result in penalties or missed savings. Use our calculators to see how stamp duty land tax (sdlt) applies to your personal situation.
Where can I find more information about stamp duty land tax (sdlt)?
HMRC publishes official guidance on GOV.UK for all UK tax topics. For a quick overview, our glossary entries are written in plain English and updated each tax year. You can also use our free online calculators to model different scenarios and understand how changes to your income, deductions, or allowances affect your overall tax position.