What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a tax paid when you purchase property or land in England and Northern Ireland. The amount you pay depends on the purchase price of the property and your circumstances as a buyer. Scotland and Wales have their own versions of this tax (Land and Buildings Transaction Tax and Land Transaction Tax respectively).
SDLT is calculated using a tiered system where different portions of the property price are taxed at different rates. This means you don't pay the highest rate on the entire amount, only on the portion that falls within each band.
Current UK SDLT Rates (2024-2025)
Standard Rates
- Up to £250,000: 0%
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Above £1.5 million: 12%
First-Time Buyer Rates
- Up to £425,000: 0%
- £425,001 to £625,000: 5%
- Above £625,000: Standard rates apply
Additional Property Surcharge
If you're buying an additional property (such as a buy-to-let or second home), a 3% surcharge applies on top of the standard rates for the entire purchase price.
How the Calculator Works
Our calculator applies the current SDLT rates to your property price:
- Determines which tax bands your property falls into
- Applies the appropriate rate to each portion
- Accounts for first-time buyer relief if applicable
- Adds the 3% surcharge for additional properties
- Sums all amounts for your total SDLT
Step-by-Step Guide
- Enter Property Price: Input the purchase price of the property.
- Select Buyer Type: Choose whether you're a standard buyer, first-time buyer, or purchasing an additional property.
- Calculate: View your total stamp duty and effective tax rate.
Example Calculations
Standard Buyer - £350,000 Property
- First £250,000: £0 (0%)
- Next £100,000: £5,000 (5%)
- Total SDLT: £5,000
First-Time Buyer - £400,000 Property
- First £425,000 allowance covers entire price
- Total SDLT: £0
Additional Property - £300,000
- 3% on entire £300,000: £9,000
- Total SDLT: £9,000
Frequently Asked Questions
When do I pay Stamp Duty?
SDLT must be paid within 14 days of completion of your property purchase. Your solicitor usually handles this payment.
Who qualifies as a first-time buyer?
You must never have owned a residential property anywhere in the world. If you're buying with someone else, both must be first-time buyers.
Can I claim a refund on the additional property surcharge?
Yes, if you sell your previous main residence within 36 months of buying the new one, you can claim a refund of the 3% surcharge.
Are there any exemptions?
Properties under £40,000 are exempt. Other exemptions include transfers between spouses, inherited properties, and some types of shared ownership.