Glossary · UK
What is SDLT?
Stamp Duty Land Tax — the property transaction tax in England and Northern Ireland.
Full Definition
SDLT (Stamp Duty Land Tax) is the tax you pay when buying a residential or commercial property in England or Northern Ireland above the zero-rate threshold of £125,000 (£300,000 for first-time buyers, up to a £500,000 cap). The tax is “slabbed” — you pay each rate on the portion of the price within each band. An extra 5% surcharge applies to additional properties (buy-to-let, second homes); an extra 2% applies to non-UK residents. Scotland uses LBTT and Wales uses LTT instead.
How SDLT is calculated
SDLT = sum over bands of (portion of price within band x band rate)- 0%
- Up to GBP 125,000 (2026/27 England and Northern Ireland).
- 2%
- The slice from GBP 125,000 to GBP 250,000.
- 5%
- The slice from GBP 250,000 to GBP 925,000.
- 10%
- The slice from GBP 925,000 to GBP 1,500,000.
- 12%
- The slice above GBP 1,500,000.
Worked example: On a GBP 300,000 home (not a first-time buyer): 0% on the first 125,000, plus 2% on the next 125,000 (GBP 2,500), plus 5% on the final 50,000 (GBP 2,500) = GBP 5,000. Additional properties add a 5% surcharge on every band.