Practise calculating Stamp Duty Land Tax for residential property purchases in England, including first-time buyer relief.
What is the SDLT on a property priced at £750,000?England. Standard residential purchase. 2026/27 rates.
Answers accepted within £5
Stamp Duty Land Tax (SDLT) is a one-off tax paid by the buyer on residential property purchases in England and Northern Ireland. Scotland has its own Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT) — this drill focuses on SDLT, which applies across England.
SDLT is banded like Income Tax: you pay different rates on different portions of the purchase price, not a flat rate on the whole amount. For 2026/27 standard residential purchases the bands are: 0% on the first £125,000; 2% from £125,001 to £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 benefit from separate, more generous bands: 0% on the first £300,000; and 5% from £300,001 to £500,000. Properties above £500,000 do not qualify for first-time buyer relief and are taxed at standard rates. This relief is significant — on a £400,000 property, a first-time buyer pays £5,000 SDLT versus £10,000 for a standard buyer.
This drill generates random property prices and randomly assigns first-time buyer status, asking you to calculate the SDLT using the correct band set. After checking your answer, you can see a full band-by-band breakdown showing the taxable amount in each band and the resulting tax.
Additional SDLT surcharges apply in some circumstances that are not covered here: a 5% surcharge for purchasing an additional residential property (e.g. buy-to-let); a 2% surcharge for non-UK residents; and the 3% surcharge for purchasing a property under a company name. If you are buying in one of these scenarios, add the relevant surcharge percentage to each band's standard rate.
SDLT must be paid within 14 days of property completion. It is typically handled by your conveyancing solicitor from completion funds.
Standard residential: 0% on first £125,000; 2% on £125,001–£250,000; 5% on £250,001–£925,000; 10% on £925,001–£1,500,000; 12% above £1,500,000.
First-time buyers pay 0% on the first £300,000 and 5% on the portion from £300,001 to £500,000. Properties above £500,000 are not eligible and are taxed at standard rates.
SDLT must be paid within 14 days of completion. Your solicitor normally handles the payment from completion funds.
Yes — Scotland has LBTT (Land and Buildings Transaction Tax) and Wales has LTT (Land Transaction Tax). Both have different rates and thresholds. This drill covers SDLT for England only.
Yes, with additional rules for the lease premium and, for new leases, a present-value calculation on future rent payments. This drill covers freehold purchases and straightforward leasehold assignments only.
A 5% surcharge applies to purchases of additional residential properties (second homes, buy-to-let) above £40,000. The surcharge is added to each standard band rate.
No — all buyers must be first-time buyers for the relief to apply. If one buyer has owned a property before, the standard rates apply to the whole transaction.
Someone who has never owned a residential property in the UK or abroad, either as a sole owner or joint owner. The property being purchased must also be for use as a main residence.
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