Stamp Duty Land Tax (SDLT) – A Guide for Property Buyers in the UK
When you purchase property or land in England or Northern Ireland, you may be required to pay Stamp Duty Land Tax (SDLT). This tax applies to freehold and leasehold purchases, whether you're buying outright or with a mortgage.
SDLT is charged on purchases of:
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Residential properties (e.g., houses, flats)
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Non-residential properties (e.g., commercial buildings, agricultural land)
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Mixed-use land or property (e.g., a building used both as a home and a shop)
How SDLT is Calculated
The amount of SDLT you pay depends on several factors:
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The purchase price of the property: Different SDLT bands apply depending on the value.
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The type of property: Residential, non-residential, or mixed-use.
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Whether you’re a first-time buyer: First-time buyers may be eligible for relief on properties up to £625,000.
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Whether the property is a second home or buy-to-let: An additional 3% surcharge applies.
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Whether the property is in a disadvantaged area: Some regional variations or reliefs may apply (though this is now largely phased out and mostly relevant to historic cases in Scotland and Wales).
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Your residency status: Non-UK residents may pay an extra 2% SDLT surcharge.
Additional Property Surcharge
If you buy a new home before selling your existing main residence, you will generally be required to pay an additional 3% SDLT surcharge, even if the new home will become your main residence. This surcharge applies if you own more than one residential property at the end of the day of the transaction.
However, you may be eligible for a refund of the 3% surcharge if you sell your previous main residence within 36 months of completing the purchase of your new home. To claim the refund, you must apply to HMRC either:
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Online through the SDLT refund form, or
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Via post, using the appropriate form and including proof of the sale.
SDLT Deadlines and Payment
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SDLT must be paid within 14 days of completing the property purchase.
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In most cases, your solicitor or conveyancer will calculate and pay SDLT on your behalf as part of the conveyancing process.