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# Stamp Duty Land Tax (SDLT) in the UK: How does it work?
- URL: https://www.taxtrends.co.uk/gb/stamp-duty-land-tax-sdlt-in-the-uk/
- Published: 2024-07-22T10:20:43.000Z
- Updated: 2026-09-17T10:41:14.000Z
- Description: Current SDLT rates and calculator for England and Northern Ireland, including first-time buyer relief, additional-property rates and non-resident surcharge.
- Author: Franck Sidon
- Tags: Property

Stamp Duty Land Tax is charged on property and land transactions in England and Northern Ireland. The residential rates changed materially from 1 April 2025, so calculators that still use the former £250,000 nil-rate band, the old first-time-buyer thresholds or the former 3% additional-property surcharge now give the wrong answer.

**At a glance**  
For a standard residential purchase, SDLT is 0% up to £125,000, then 2%, 5%, 10% and 12% in successive bands. Additional dwellings usually add 5 percentage points to each band, qualifying non-resident transactions add 2 percentage points, and both surcharges can apply together. First-time buyer relief gives a 0% band to £300,000 and 5% from £300,001 to £500,000, but no relief is available if the purchase price exceeds £500,000.

## Standard residential SDLT rates

| Portion of purchase price | Standard rate | Additional property rate | Additional property + non-resident |
| ------------------------- | ------------- | ------------------------ | ---------------------------------- |
| Up to £125,000            | 0%            | 5%                       | 7%                                 |
| £125,001 to £250,000      | 2%            | 7%                       | 9%                                 |
| £250,001 to £925,000      | 5%            | 10%                      | 12%                                |
| £925,001 to £1.5m         | 10%           | 15%                      | 17%                                |
| Above £1.5m               | 12%           | 17%                      | 19%                                |

The rates are applied progressively to slices of the consideration rather than applying a single percentage to the entire purchase price. The final SDLT amount is rounded down to the nearest whole pound.

## First-time buyers

Qualifying first-time buyers pay no SDLT on the first **£300,000** and 5% on the portion from £300,001 to £500,000\. If the property costs more than £500,000, First Time Buyers' Relief is not available and the ordinary residential rates apply to the whole transaction.

All purchasers must satisfy the first-time buyer conditions for joint purchases and the buyer must intend to occupy the property as their main residence. A qualifying non-resident transaction can still attract the 2% non-resident surcharge on top of the first-time buyer rates.

## Additional properties and replacing a main home

If buying the property means you will own more than one residential property, the higher rates usually add **5 percentage points** to each residential band. For a single dwelling, the higher-rate rules generally require chargeable consideration of at least £40,000 and contain further conditions, including the main-residence replacement rules.

If you are replacing your main residence and have already sold the old main home, the higher rates may not apply. Where the old main residence has not yet been sold, higher rates can be payable initially, with a refund potentially available if the qualifying former main residence is disposed of within the relevant 36-month period.

## The 2% non-resident surcharge

Certain non-UK resident purchases of residential property in England and Northern Ireland carry a further **2 percentage point surcharge**. SDLT has its own residence tests for this purpose, so tax residence under the Statutory Residence Test does not by itself determine the SDLT result.

The 2% surcharge is added on top of other residential rates, including First Time Buyers' Relief, higher rates for additional dwellings and company rates. It can also apply to certain UK-resident companies controlled by non-UK residents.

## Companies and the 17% single rate

Certain acquisitions of dwellings costing more than £500,000 by companies and other non-natural persons can be charged at a flat **17% rate on the whole consideration**. The non-resident surcharge can increase that to 19% where it applies. This regime contains important reliefs, including for some property rental and development businesses.

Where a qualifying relief from the 17% single rate applies, the transaction is generally charged at the ordinary **higher rates for residential property**, rather than at the standard individual rates. The calculator therefore provides separate company choices for the higher-rate regime and for the 17% single-rate regime.

**Company purchases need care**  
A company acquiring a dwelling will commonly be within the 5% higher-rates regime, but the separate 17% single-rate regime can apply to certain purchases above £500,000 unless a relief is available. Select the 17% option only where that special single rate applies; if relief from it is available, use the company higher-rates option instead.

## Quick Stamp Duty Land Tax Calculator

Use the calculator below for straightforward freehold residential purchases in England or Northern Ireland. It covers standard rates, First Time Buyers' Relief, higher rates for additional dwellings, company higher rates, the non-resident surcharge and the 17% single corporate rate.

It does not determine whether you satisfy the legal tests for a relief, the higher-rates regime or the non-resident surcharge. New leasehold rent, linked transactions, mixed-use property, shared ownership and purchases involving multiple dwellings can require a more detailed calculation.

### Quick Stamp Duty Land Tax Calculator

Current residential SDLT rates for England and Northern Ireland.

Purchase price / consideration (£)?

Purchase type?

Individual — only/main residential propertyIndividual — additional property / higher ratesFirst-time buyer — qualifying purchaseCompany — higher residential ratesCompany/non-natural person — 17% single rate applies

Non-resident surcharge??

NoYes — add 2 percentage points

Calculate SDLT 

For straightforward freehold residential purchases only. The calculator does not decide whether first-time buyer relief, the higher-rates rules, company relief from the 17% rate or the non-resident surcharge legally applies.

## Examples

**Example: £300,000 main home**  
A standard purchase at £300,000 produces **£5,000** of SDLT: nothing on the first £125,000, £2,500 on the next £125,000 and £2,500 on the final £50,000\. A qualifying first-time buyer purchasing the same property would pay no SDLT.

**Example: £300,000 additional property**  
The higher rates produce £20,000 of SDLT: 5% on the first £125,000, 7% on the next £125,000 and 10% on the final £50,000\. If the purchase is also a non-resident transaction, the additional 2 percentage point surcharge applies on top.

## Common mistakes

#### Using the old £250,000 nil-rate band

For standard residential transactions from 1 April 2025, the nil-rate band reverted to £125,000\. Calculators based on the temporary £250,000 threshold understate current SDLT.

#### Using a 3% additional-property surcharge

The additional-dwelling surcharge increased from 3% to 5% from 31 October 2024\. For transactions from 1 April 2025 it is applied on top of the restored residential bands.

#### Assuming UK tax residence decides the 2% surcharge

The SDLT non-resident surcharge uses specific statutory residence tests for the purchaser and transaction. It should be checked independently rather than inferred from ordinary UK tax residence alone.

## Conclusion

Current SDLT calculations need to reflect the residential thresholds in force since 1 April 2025 and the 5% higher-rates surcharge introduced from 31 October 2024\. The most common errors are now the use of expired first-time-buyer thresholds, the old £250,000 nil-rate band and the old 3% additional-property surcharge.

The calculator above is suitable for straightforward freehold residential purchases. Company acquisitions, non-resident transactions, new leasehold rent, linked deals, mixed-use property, shared ownership, purchases involving multiple dwellings and replacement-main-residence refunds should be checked against the detailed HMRC rules before completion.

## Sources and further reading

- [GOV.UK: residential SDLT rates](https://www.gov.uk/stamp-duty-land-tax/residential-property-rates?ref=taxtrends.co.uk)
- [GOV.UK: higher rates for additional dwellings](https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property?ref=taxtrends.co.uk)
- [GOV.UK: non-resident SDLT surcharge](https://www.gov.uk/guidance/rates-of-stamp-duty-land-tax-for-non-uk-residents?ref=taxtrends.co.uk)
- [GOV.UK: SDLT for corporate bodies](https://www.gov.uk/guidance/stamp-duty-land-tax-corporate-bodies?ref=taxtrends.co.uk)