Glossary · UK
What is Stamp Duty Land Tax (SDLT)?
The tax paid when buying residential or commercial property in England and Northern Ireland. Scotland uses LBTT and Wales uses LTT instead.
Full Definition
Stamp Duty Land Tax (SDLT) is a transaction tax paid to HMRC when buying land or property in England and Northern Ireland. It operates on a band basis similar to Income Tax — only the portion of the purchase price falling in each band is taxed at that band's rate. For residential property in 2026/27 the standard rates are: 0% on the first £250,000; 5% from £250,001 to £925,000; 10% from £925,001 to £1,500,000; and 12% above £1,500,000. First-time buyers receive relief: 0% on the first £425,000 and 5% from £425,001 to £625,000, provided the property costs no more than £625,000. Buyers of additional residential properties (second homes, buy-to-let) pay a 5% surcharge on every band. Non-UK residents purchasing residential property pay a further 2% surcharge. SDLT must be paid and a return filed within 14 days of the completion date. Linked transactions (e.g. buying multiple properties from the same seller) are treated as a single transaction for SDLT purposes. Scotland applies Land and Buildings Transaction Tax (LBTT) with different bands, and Wales uses Land Transaction Tax (LTT).