Stamp Duty Land Tax (SDLT) is payable to HMRC when buying property or land over a certain value in England, Northern Ireland and Wales.

Calculating your liability to Stamp Duty depends on the type of property you are buying, and whether you are a first-time buyer, it is your principal private home, a second home/buy-to-let or a non-residential or mixed-use property as detailed below.

First-time buyers are subject to stamp duty tax, but different rates apply if you are buying a house valued at less than £500,000 when the following rates apply.

• Up to £300,000 no stamp duty to be paid
• 5% SDLT on the portion from £300,001 to £500,000

Normal stamp duty tax is paid on purchases over £500,000.

If you are purchasing a residential property, are not a first-time buyer, and this will be the only residential property you will own, whether you live in it or not, you will pay stamp duty if the transaction price is above £125,000. Thereafter, you pay tax progressively as follows:

• Up to £125,000 no stamp duty to be paid
• 2% stamp duty to be paid on the portion from £125,001 to £250,000
• 5% stamp duty to be paid on the portion from £250,001 to £925,000
• 10% stamp duty to be paid on the portion from £925,001 to £1.5 million
• 12% stamp duty to be paid on the remaining amount - the portion above £1.5 million

Anyone purchasing a second home or buy-to-let property above £40,000 must pay an additional 5% on top of the amounts detailed above and pay stamp duty as follows:

• Up to £40,000 - 0%
• 5% stamp duty to be paid on the portion between £40,001 and £125,000
• 7% stamp duty to be paid on the portion from £125,001 to £250,000
• 10% stamp duty to be paid on the portion from £250,001 to £925,000
• 12% stamp duty to be paid on the portion from £925,001 to £1.5 million
• 17% stamp duty to be paid on the remaining amount - the portion above £1.5 million

If you are purchasing a property which you intend to use as your only home, but haven’t yet sold your previous home, you would have to pay the higher rates above but if you sell your old property within 36 months you could get a refund.

Non-residential property includes:

• Commercial property, eg shops, industrial or offices
• Agricultural land/farms
• Forests
• Any other land or property which is not used as a residence
• Residential property consisting of more than a certain number of units

A ‘mixed use’ property is one that has both residential and non-residential elements.

If the property is classified as non-residential or mixed-use land and property then, there is a stepped regime for Stamp Duty as follows:

• Up to £150,000 - 0%
• Above £150,000 and up to 250,000 - 2%
• Above £250,000 - 5%

When you buy a non-residential or mixed use leasehold interest you pay SDLT on both the:

• Purchase price of the lease (the ‘lease premium’)
• Value of the annual rent you pay (the ‘net present value’)

These are calculated separately then added together.

If you buy an existing (‘assigned’) lease, you only pay SDLT on the lease price (or consideration).

The net present value (NPV) is based on the total rent over the life of the lease. You don’t pay SDLT on the rent if the NPV is less than £150,000.

The nil rate band which applies to the ‘net present value’ of any rents payable for residential property is also set at £150,000.

The following rates will apply:
Net Present Value of any Rent

• Up to £150,000 - Zero
• 1% On the portion from £150,001 to £500,000
• 2% above Over £500,001

Stamp Duty needs to be paid to HMRC within 14 days of completion of a transaction. Your Solicitor will normally deal with this payment on your behalf.

Please use our SDLT calculator to understand how much stamp duty you need to pay.

Please note – The information on Stamp Duty and the calculator are believed to be correct at the date of publication (last updated April 2025) but purchasers should not rely on the figures provided and should seek confirmation from a Solicitor or Accountant to confirm liability to this and other possible taxes.

There are additional rules for corporate bodies buying residential property and we would recommend you look on the GOV.UK website for details:

https://www.gov.uk/guidance/stamp-duty-land-tax-corporate-bodies