Buying in the UK? Which “stamp duty” you pay depends on where the property is:
Below is a clear guide to how each tax works, the 2025 rates and bands, who pays, deadlines, and how to pay—plus a practical FAQ. All rates are marginal (you pay the rate only on the slice within each band).
Calculator: Want a quick estimate for your purchase? Use the Area360 Stamp Duty Calculator (works for SDLT, LBTT and LTT).
The buyer pays SDLT. You (or your conveyancer) must file an SDLT return and pay within 14 days of the “effective date” (normally completion). HMRC then issues an SDLT5 certificate you’ll need for Land Registry.
| Slice of price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5m | 10% |
| Over £1.5m | 12% |
First-time buyer (FTB) relief (property ≤ £500,000):
| Slice of price | Rate (FTB) |
|---|---|
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| Over £500,000 | No relief (standard rates apply) |
Higher rates for additional homes (buy-to-let/second homes):
| Slice of price | Rate (additional property) |
|---|---|
| Up to £125,000 | 5% |
| £125,001 – £250,000 | 7% |
| £250,001 – £925,000 | 10% |
| £925,001 – £1.5m | 15% |
| Over £1.5m | 17% |
Other points (England & NI):
Example (main home): £500,000 purchase → £0 on first £125k + 2% on next £125k (£2,500) + 5% on next £250k (£12,500) = £15,000.
The buyer files an LBTT return and pays within 30 days of the effective date (usually completion). Revenue Scotland then issues a certificate required by Registers of Scotland.
| Slice of price | LBTT rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Over £750,000 | 12% |
First-time buyer relief: increases the 0% band to £175,000 (max saving £600).
Additional Dwelling Supplement (ADS): 8% of the total price on most second homes/BTL (replacement window generally 36 months).
Example (with ADS): £300,000 purchase (not replacing a main home) → standard LBTT £4,600 + ADS £24,000 = £28,600.
The buyer must file and pay within 30 days of the day after the effective date. You’ll use a 12‑digit UTRN when paying the Welsh Revenue Authority (WRA).
| Slice of price | LTT rate (main) |
|---|---|
| Up to £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1.5m | 10% |
| Over £1.5m | 12% |
| Slice of price | LTT rate (higher) |
|---|---|
| Up to £180,000 | 5% |
| £180,001 – £250,000 | 8.5% |
| £250,001 – £400,000 | 10% |
| £400,001 – £750,000 | 12.5% |
| £750,001 – £1.5m | 15% |
| Over £1.5m | 17% |
Example (main home): £350,000 → £0 up to £225k + 6% on £125k = £7,500.
Do I always need to file a return, even if no tax is due? Usually yes. Most purchases require a return even if the calculation comes to £0 (there are limited exceptions). Deadlines: 14 days (England/NI) and 30 days (Scotland/Wales).
What counts as an “additional property”? Typically, buying when you (or your spouse/civil partner or a co‑buyer) will own more than one dwelling worth £40,000+. Replacement of a main residence can remove the surcharge. Rules vary by nation.
Can I get a refund of the “extra” tax if I sell my old home later?
Do non‑UK residents pay more? England & NI only: +2% surcharge if any buyer is non‑resident for SDLT purposes on the transaction. No equivalent surcharge in Scotland/Wales.
Are derelict or uninhabitable homes treated as non‑residential? Not usually. The key test is whether a building is used or suitable for use as a dwelling; needing renovation doesn’t make it non‑residential. Classification is fact‑specific.
Do companies pay different rates?
What about leases and non‑residential property? Different bands apply (including on a lease’s net present value). Use the official calculators for your nation.
Linked or multiple transactions—anything special? Linked transactions can change which bands/rates apply. Check the worked examples in the official guidance.
Note: Rates, thresholds and reliefs change. Always confirm on the official sites before exchange/completion.