Understanding Stamp Duty Land Tax
Stamp Duty Land Tax (SDLT) is a tax paid when purchasing property or land in England and Northern Ireland. The tax is calculated on a progressive band system, meaning you only pay the higher rate on the portion of the price that falls within each band — similar to how income tax works.
First-Time Buyer Relief
First-time buyers purchasing a property up to £625,000 benefit from reduced rates. No SDLT is payable on the first £425,000, and 5% applies on the portion between £425,001 and £625,000. If the property costs more than £625,000, standard rates apply with no first-time buyer relief.
Additional Property Surcharge
If you already own a property and are purchasing an additional one (including buy-to-let investments or second homes), a 5% surcharge is added to every band. This applies from the very first pound of the purchase price, making it a significant additional cost for property investors.
Frequently Asked Questions
When do I need to pay stamp duty?▾
SDLT must be paid within 14 days of completing (not exchanging on) a property purchase. Your solicitor or conveyancer will usually handle the payment and filing on your behalf as part of the conveyancing process.
Can I claim the additional property surcharge back?▾
If you sell your previous main residence within 36 months of buying a new one, you can apply for a refund of the 5% surcharge. The refund must be claimed within 12 months of the sale of the previous property, or within 12 months of the filing date of the SDLT return, whichever is later.
Does stamp duty apply in Scotland and Wales?▾
No. Scotland has its own Land and Buildings Transaction Tax (LBTT), and Wales has the Land Transaction Tax (LTT). Each has different rates and thresholds. SDLT only applies to properties in England and Northern Ireland.
Am I a first-time buyer if my partner has owned before?▾
Both purchasers must be first-time buyers to claim the relief. If you are buying jointly and one of you has previously owned a property (anywhere in the world), the first-time buyer relief cannot be claimed.
Calclypso Editorial Team
SDLT rates verified against HMRC 2025-26 rates. Last updated: April 2026. This calculator is for estimation purposes. For official calculations, refer to HMRC's SDLT calculator.