Current Stamp Duty Land Tax Rates

Stamp Duty Land Tax (SDLT) is a tax you pay when buying property or land in England and Northern Ireland. The amount you pay depends on the purchase price, property type, and your circumstances. This article sets out the current rates and thresholds for residential and non-residential properties in...

How Stamp Duty Land Tax works

SDLT uses a graduated system where you pay different rates on different portions of the property price, similar to income tax bands. This means you only pay the higher rates on the part of the purchase price that falls within each band, not on the entire amount.

You must pay SDLT within 14 days of completion if the property or land you buy is above certain price thresholds.

Current residential property rates

For residential properties purchased on or after 4 December 2014, SDLT is calculated using the following bands:

Standard residential rates:

Up to £250,000: 0%
£250,001 to £925,000: 5%
£925,001 to £1,500,000: 10%
Above £1,500,000: 12%

First-time buyers:

If you're a first-time buyer purchasing a property for £625,000 or less, you benefit from relief:

Up to £425,000: 0%
£425,001 to £625,000: 5%

If the property costs more than £625,000, first-time buyers cannot claim this relief and must pay the standard rates.

Higher rates for additional properties:

If you're buying an additional residential property (such as a buy-to-let investment or second home) and it costs £40,000 or more, you pay an extra 3% on top of the standard rates on each band:

Up to £250,000: 3%
£250,001 to £925,000: 8%
£925,001 to £1,500,000: 13%
Above £1,500,000: 15%

These higher rates apply unless you're replacing your main residence, in which case you may qualify for the standard rates if you sell your previous home within three years.

Current non-residential and mixed-use property rates

Non-residential properties include commercial properties like shops, offices, and agricultural land. Mixed-use properties contain both residential and non-residential elements, such as a shop with a flat above.

Non-residential and mixed-use rates:

Up to £150,000: 0%
£150,001 to £250,000: 2%
Above £250,000: 5%

These rates are significantly lower than residential rates, which is why it matters whether your property is classified as residential, non-residential, or mixed-use.

How to calculate your SDLT bill

Because SDLT is charged in bands, you calculate tax on each portion separately.

Example: If you buy a residential property for £300,000 as your main home:

First £250,000: £0 (0%)
Remaining £50,000: £2,500 (5%)
Total SDLT: £2,500

Example: If you buy a buy-to-let property for £300,000:

First £250,000: £7,500 (3%)
Remaining £50,000: £4,000 (8%)
Total SDLT: £11,500

The government provides a free online Stamp Duty Land Tax calculator to help you work out exactly how much you'll pay based on your specific circumstances.

Historic rates

The current SDLT system for residential properties came into effect on 4 December 2014, when the graduated band structure replaced the previous "slab" system where a single rate applied to the entire purchase price.

SDLT has existed since 1 December 2003, and rates and thresholds have changed multiple times. If you're researching a property transaction that completed before the current tax year, you'll need to check the rates that applied at that time, as they may differ substantially from today's thresholds.

When SDLT doesn't apply

You don't pay SDLT if:

Your property or land costs less than £250,000 (or £425,000 for first-time buyers buying a property up to £625,000)
The property is left to you in a will
The property is transferred as part of a divorce or dissolution of a civil partnership

For non-residential and mixed-use properties, the threshold is £150,000.

Filing your SDLT return

Even if no tax is due (because your purchase falls below the threshold), you must still submit an SDLT return to HMRC within 14 days of completion. Your solicitor or conveyancer normally handles this on your behalf, but you remain legally responsible for ensuring it's done.

Late payment or filing can result in penalties and interest charges, so it's important to meet the deadline.

Important considerations

SDLT only applies to property and land purchases in England and Northern Ireland. Scotland has its own Land and Buildings Transaction Tax (LBTT), and Wales has Land Transaction Tax (LTT), each with different rates and thresholds.

The rates and thresholds shown here apply from 1 April 2025. Previous temporary increases to the nil-rate threshold (which applied during earlier periods) have now ended, and the thresholds have returned to these standard levels.

Sources

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.