Guide · Updated April 2025
Stamp Duty Explained: SDLT, LBTT & LTT 2025
When you buy a property in the UK, you usually pay a transaction tax. The name and rules depend on where the property is: Stamp Duty Land Tax (SDLT) in England and Northern Ireland, Land and Buildings Transaction Tax (LBTT) in Scotland, or Land Transaction Tax (LTT) in Wales. This guide explains all three for the 2025/26 tax year.
SDLT — England & Northern Ireland
Stamp Duty Land Tax (SDLT) applies to property purchases in England and Northern Ireland. For a buyer who is replacing their main residence (and is not a first-time buyer), the standard rates are:
| Portion of price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Above £1,500,000 | 12% |
SDLT is “slabbed” — you pay each rate on the portion of the price within that band, not the full price. So on a £350,000 home: £0 on the first £125k, 2% on £125–250k (£2,500), 5% on £250–350k (£5,000) — total £7,500.
SDLT First-Time Buyer Relief
First-time buyers in England and Northern Ireland get reduced SDLT, but only if the property costs £500,000 or less:
- 0% on the first £300,000
- 5% on £300,001 – £500,000
- Above £500,000 → standard rates apply on the full price (no relief)
On a £450,000 first home: £0 + 5% × £150,000 = £7,500. A non-FTB would pay £10,000 on the same property.
SDLT Additional Property Surcharge
If you already own residential property and buy another (buy-to-let, holiday home, second home), you pay an extra 5% surcharge on top of standard rates (raised from 3% on 31 October 2024). That makes the rates effectively 5%, 7%, 10%, 15% and 17% across the bands.
The surcharge does NOT apply if you're replacing your main residence — even if there's an overlap. You can also claim a refund if you sell the old home within 3 years of buying the new one.
Non-Resident Surcharge
Buyers who are not UK residents pay an additional 2% surchargeon top of standard SDLT and any additional property surcharge. You're considered “non-resident” if you spent fewer than 183 days in the UK in the 12 months before completion.
LBTT — Scotland
Scotland replaced SDLT with Land and Buildings Transaction Tax (LBTT) in April 2015. Standard residential rates 2025/26:
| Portion of price | Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Above £750,000 | 12% |
First-time buyer relief in Scotland raises the zero-rate threshold to £175,000 (no cap on property price, unlike England).
Additional Dwelling Supplement (ADS): 8% on the full purchase price for second homes and buy-to-let (raised from 6% on 5 December 2024).
LTT — Wales
Wales replaced SDLT with Land Transaction Tax (LTT) in April 2018. Standard residential rates 2025/26:
| Portion of price | Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1,500,000 | 10% |
| Above £1,500,000 | 12% |
No first-time buyer relief in Wales — but the £225,000 starting threshold (the highest in the UK) means most first-time buyers in Wales pay no LTT anyway. Higher rates of 5%–17% apply for additional residential properties.
Worked Examples
£250,000 main residence:
- England (standard): £2,500 SDLT
- England (first-time buyer): £0 SDLT
- Scotland (standard): £2,100 LBTT
- Wales (standard): £1,500 LTT
£500,000 main residence:
- England (standard): £15,000 SDLT
- England (FTB): £10,000 SDLT
- Scotland: £23,350 LBTT
- Wales: £18,950 LTT
Get exact figures for your purchase using our Stamp Duty Calculator — switch between regions and toggle first-time buyer / additional property.
When and How to Pay
Payment is normally handled by your solicitor or conveyancer as part of completion. SDLT must be filed within 14 days of completion in England/NI; LBTT and LTT must be filed within 30 days. Late filing incurs penalties starting at £100.
Exemptions & Reliefs
- Inheritance — fully exempt
- Transfers between spouses or civil partners — generally no tax
- Properties below the zero-rate threshold
- Multiple Dwellings Relief (England) — abolished June 2024
- Charity purchases for charitable use
- Public bodies, registered social landlords (with restrictions)