The temporary Stamp Duty Land Tax (SDLT) thresholds that were introduced in September 2022 ended on 31 March 2025. From 1 April 2025, the nil-rate band dropped back to £125,000 (from £250,000), and the first-time buyer threshold returned to £300,000 (from £425,000). On top of that, the surcharge for additional properties jumped from 3% to 5% in October 2024.
If you're buying a property in England or Northern Ireland, here's exactly what you'll pay.
Standard SDLT Rates (From April 2025)
These rates apply to anyone buying a residential property who isn't a first-time buyer and isn't purchasing an additional property:
| Property Price Band | SDLT 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 calculated on a progressive basis — like income tax bands. You only pay the higher rate on the portion of the price that falls within each band, not on the whole amount.
Worked Example: Buying at £300,000
First £125,000 × 0% = £0
Next £125,000 (£125,001–£250,000) × 2% = £2,500
Next £50,000 (£250,001–£300,000) × 5% = £2,500
Total SDLT: £5,000 (effective rate: 1.67%)
First-Time Buyer Rates
First-time buyers still get preferential treatment, but the threshold has reverted from its temporary high. From April 2025, if you've never owned a property and the purchase price is £500,000 or less, you pay 0% on the first £300,000 and 5% on the portion between £300,001 and £500,000. Properties above £500,000 don't qualify — you pay standard rates instead.
For a first-time buyer purchasing at £350,000, the SDLT bill is just £2,500 (5% on the £50,000 above £300,000). A standard buyer would pay £5,000 on the same property — double the amount.
There's an important quirk: the first-time buyer relief is all-or-nothing. At £499,000, you benefit from the full nil-rate band. At £501,000, you lose the relief entirely and pay standard rates — a jump from £9,950 to £15,050 in SDLT. If you're purchasing near the £500,000 boundary, negotiating the price down by even a small amount can save you thousands.
For joint purchases, both buyers must qualify as first-time buyers. If one partner has owned property before (including inherited property that was subsequently sold), neither qualifies for the relief.
Additional Property Surcharge: Now 5%
Buying a second home, buy-to-let, or any additional residential property? Since October 2024, the surcharge is 5 percentage points on top of standard rates (up from 3%). This applies from the first pound.
| Property Price Band | Standard | Additional (+5%) |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 – £250,000 | 2% | 7% |
| £250,001 – £925,000 | 5% | 10% |
| £925,001 – £1,500,000 | 10% | 15% |
| Above £1,500,000 | 12% | 17% |
On a £300,000 buy-to-let, SDLT is now £20,000 — four times what a standard buyer would pay. This has significantly changed the economics of property investment.
Non-UK Residents: +2% More
If you're not a UK resident, an additional 2% surcharge applies on top of everything else. A non-UK resident buying a second property at £300,000 faces the additional property surcharge (5%) plus the non-resident surcharge (2%) — a combined 7 percentage points added to each band, pushing the total SDLT to £26,000.
Scotland and Wales Are Different
This guide covers England and Northern Ireland only. Scotland uses Land and Buildings Transaction Tax (LBTT) with different bands and rates. Wales uses Land Transaction Tax (LTT). Both have their own calculators on their respective government websites.
When Do You Pay SDLT?
You must file your SDLT return and pay the tax within 14 days of the completion date — not the exchange date. This is the date when the money changes hands and you receive the keys, not when you signed the contract. Your solicitor or conveyancer normally handles the filing and payment on your behalf from the completion funds.
Miss the 14-day deadline and you'll face automatic penalties. HMRC charges £100 if you're up to 3 months late, £200 if you're between 3 and 6 months late, and rising penalties beyond that. Interest also accrues on any unpaid tax from the day after the deadline. In practice, your solicitor will handle this, but it's worth knowing in case something goes wrong with the completion process.
If you're buying at auction, the 14-day clock starts from the date the auctioneer's gavel falls — not from completion. This catches some auction buyers off guard, especially on properties requiring work before they can complete.
Can You Claim SDLT Back?
There are several situations where you might be entitled to an SDLT refund:
Selling a previous main residence: If you paid the additional property surcharge because you owned two homes simultaneously, and you sell your previous main residence within 36 months (3 years) of completing the new purchase, you can claim the surcharge back. This is the most common refund scenario. File the claim using HMRC's online form within 12 months of selling the old property or within 12 months of the filing date for the new purchase — whichever is later.
Property price reduction: If the final price is adjusted downwards after completion — for example, due to a contractual price adjustment clause or a successful compensation claim — you can apply to amend your SDLT return within 12 months of the filing date.
Uninhabitable property: Properties that are genuinely not suitable for use as a dwelling may attract non-residential SDLT rates, which are significantly lower at the higher end. However, HMRC actively challenges these claims, and tribunal decisions have gone both ways. If you're buying a property that needs significant structural work, take professional advice before relying on this.
How SDLT Affects Buy-to-Let Returns
The increase in the additional property surcharge from 3% to 5% has a meaningful impact on buy-to-let investment returns. To understand why, consider a worked example.
Take a £250,000 buy-to-let property with a gross annual rent of £15,000 (6% gross yield). Under the old 3% surcharge, SDLT was £10,000. Under the current 5% surcharge, SDLT is £15,000 — a £5,000 increase. That £5,000 represents 4 months of additional gross rent before you break even.
More importantly, SDLT is a transaction cost that you pay upfront and can't deduct from your rental income for tax purposes. It can only be offset against capital gains when you eventually sell. For landlords planning long-term holds (10+ years), the higher SDLT is diluted over time. But for anyone planning a shorter investment horizon, the extra 2% surcharge can cut net returns substantially.
Factor in the £10,000 cost cap for EPC improvements and the restriction of mortgage interest relief to the basic rate, and the total entry cost for buy-to-let has risen dramatically since 2020. Smart investors now model all these costs before committing rather than focusing on gross yield alone.
Multiple Dwellings Relief — Abolished
Multiple Dwellings Relief (MDR) was abolished for transactions completing on or after 1 June 2024. Previously, MDR allowed buyers purchasing two or more dwellings in a single transaction to pay SDLT based on the average property price rather than the total — a significant saving on portfolio purchases and properties with annexes.
The removal of MDR particularly affects investors buying small blocks of flats, landlords acquiring portfolios, and buyers of properties with granny annexes or self-contained outbuildings. If you completed a purchase before June 2024 and haven't claimed MDR, you may still be able to file an amended return.
Company Purchases and the 15% Rate
Companies, partnerships with corporate members, and collective investment schemes buying residential property worth more than £500,000 face a flat 15% SDLT rate under the Annual Tax on Enveloped Dwellings (ATED) regime. This was introduced to discourage "enveloping" — holding residential property in a company wrapper to avoid inheritance tax and stamp duty on share transfers.
There are exemptions: property development companies, property rental businesses, farmhouses, employee accommodation, and property held for charitable purposes can all claim relief from the 15% rate. If you're buying through a limited company, specialist tax advice is essential.
Calculate Your Stamp Duty
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Stamp Duty Calculator →Key Takeaways
The end of the temporary SDLT thresholds means most buyers now pay more stamp duty than they would have in 2024. First-time buyers are particularly affected — the nil-rate band dropped by £125,000. And buy-to-let investors face a 5% surcharge that makes smaller properties significantly less attractive from a yield perspective.
Make sure you factor SDLT into your total purchase budget alongside mortgage fees, surveys, solicitor costs, and moving expenses. Use our Stamp Duty calculator to get the exact figure for your purchase.