Stamp Duty by Region: SDLT, LBTT and LTT Compared

At a Glance

SDLT (England and Northern Ireland) — 2025/26 Bands

Stamp Duty Land Tax applies to property purchases in England and Northern Ireland. From April 2025, the residential bands for main-residence purchases by non-first-time buyers are:

First-time buyer relief: 0% on the first £300,000, 5% on £300,001-£500,000. Properties priced above £500,000 receive no FTB relief at all — full standard rates apply. This creates a sharp cliff edge: £500,000 attracts £10,000 SDLT (FTB), but £501,000 attracts £15,300 (standard rates) — a marginal £5,300 tax on a £1,000 price increase.

The zero band was temporarily raised to £250,000 (£425,000 FTB) under the 2022-2025 Mini-Budget relaxation, but reverted to £125,000 (£300,000 FTB) from 1 April 2025. The additional property surcharge increased from +3% to +5% in October 2024, substantially raising the cost of buy-to-let and second-home purchases. The non-UK resident surcharge of +2% (applied to overseas buyers based on residency tests) has been in place since April 2021.

LBTT (Scotland) — 2025/26 Bands

Land and Buildings Transaction Tax has applied in Scotland since April 2015 and is set independently by the Scottish Parliament. The 2025/26 bands:

First-time buyer relief: 0% on the first £175,000 (versus the standard £145,000 zero band). Standard rates apply above £175,000 — no cliff edge as in England. The relief saves a Scottish FTB up to £600 on any purchase, regardless of price.

Additional Dwelling Supplement (ADS): +8% on additional residential property purchases, applied to the entire purchase price (not just the slice above the lowest band). The ADS rate was raised from +6% in late 2024 — sharper than the SDLT equivalent rise. The 18-month sale-of-previous-home refund applies for buyers replacing their main residence with a gap between completion dates. No non-UK resident surcharge applies to LBTT, although the Scottish Government has consulted on introducing one.

LTT (Wales) — 2025/26 Bands

Land Transaction Tax has applied in Wales since April 2018 and is set by the Welsh Parliament (Senedd). The 2025/26 bands:

LTT's defining feature is its high zero-rate band at £225,000 — much more generous than England's £125,000 or Scotland's £145,000. The Welsh Government's rationale: average Welsh house prices are much lower than England, so a higher zero band achieves equivalent “most buyers pay nothing” effect without an explicit first-time buyer relief. Welsh property under £225,000 attracts zero LTT for any buyer (standard rates) or 5% for additional property buyers.

Wales is the only UK nation without an explicit first-time buyer relief. Welsh FTBs at £300,000-£500,000 therefore pay materially more than equivalent English FTBs (who benefit from the £300,000 zero band). The Welsh Government has consulted on introducing an explicit FTB relief but has not legislated. The additional property surcharge stands at +5% on top of all bands, raised from the original +3% in 2023.

Worked Example: £200,000 Purchase

A typical first-time buyer purchase at £200,000 illustrates how the three taxes can land very differently in absolute terms despite all working from similar principles.

At £200k Wales is the cheapest for first-time and main residence purchases (LTT zero up to £225k). For additional property Wales is also competitive at £10k versus £11,500 SDLT and £17,100 LBTT. LBTT is the most expensive across the board at this price point — both because of its lower thresholds and the 8% ADS.

Worked Example: £350,000 Purchase

Moving up to a typical second-time buyer or upgrader purchase at £350,000, the picture changes significantly:

At £350k England-NI becomes the cheapest jurisdiction for both FTB and standard purchases. Wales is the most expensive for FTBs because it has no FTB relief and the 6% rate kicks in at £225k. Scotland is the most expensive for additional property because of its 8% ADS rate. Welsh buyers at this price point pay around £4,500 more than English equivalents on a standard purchase — a real cost differential that affects choice of where to buy where buyers have flexibility.

Worked Example: £600,000 Purchase

At a London commuter-belt or Edinburgh New Town price of £600,000:

At £600k SDLT is significantly cheaper than LBTT and LTT for all buyer types. The SDLT bill is £20,000 versus LBTT £33,350 — a £13,350 gap for a Scottish standard purchase. The first-time buyer position in England is now the same as standard (because the £500k FTB cliff has been passed), while LBTT FTB relief shaves £1,250 off the Scottish bill at this price point. Buy-to-let landlords face very heavy costs in Scotland — £81k of LBTT plus ADS on a £600k purchase, compared to £50k SDLT in England.

Filing, Payment and Refunds

The filing process differs only in deadline and authority. SDLT must be filed and paid within 14 days of effective date (typically completion); LBTT and LTT within 30 days. In practice the buyer's conveyancer files online immediately at completion and pays from the completion funds held on client account. Late filing triggers an automatic £100 penalty plus interest on unpaid tax.

Additional property surcharge refunds: SDLT and LTT both allow a refund of the surcharge if the previous main residence is sold within 36 months of the new purchase. LBTT's ADS has a tighter 18-month window. Refunds are not automatic — the buyer must apply through the relevant tax authority within 12 months of the sale of the previous home. Conveyancers usually flag the refund opportunity at the time of purchase; if not, set a calendar reminder for the time of sale.

Non-resident surcharge refunds (SDLT only): the +2% surcharge can be reclaimed if the buyer subsequently spends 183+ days in the UK in any single year within the 12 months following purchase. This is useful for returning expats and for those who buy shortly before relocating. The refund process is administered by HMRC and typically takes 6-12 weeks to process.

Strategic Implications

For most buyers the tax is a known cost of moving; for some it influences the decision. The clearest cases where the differences materially affect buying decisions are: Second-home buyersface very different costs by region — Scotland's 8% ADS makes Scottish holiday homes substantially more expensive than English equivalents, contributing to Scotland's lower buy-to-let activity ratio.

First-time buyers around the £400k-£500k mark in England face a sharp cliff edge — buying at £499,999 saves £5,250 versus £510,000 — and many transactions cluster just below £500k as a result. The same FTB pays similar amounts in Scotland and Wales but without the cliff structure.

High-value buyers (£750k+) face the highest costs in Scotland by a wide margin; in some scenarios LBTT is 50-100% more than SDLT on equivalent transactions. Wealthy buyers occasionally consider the tax in their domicile choice decisions, although this is rarely decisive on its own.

Frequently Asked Questions

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