How UK SDLT works
Stamp Duty Land Tax (SDLT) is the tax you pay when buying a property in England or Northern Ireland. It is a tiered, band-based tax — you pay each rate only on the portion of the price that falls within that band, not on the whole purchase price.
Standard bands (April 2025)
For a buyer purchasing their main home, the bands are:
- 0% on the first £125,000
- 2% on £125,001 to £250,000
- 5% on £250,001 to £925,000
- 10% on £925,001 to £1,500,000
- 12% on anything above £1,500,000
The 5% additional property surcharge
Buy-to-let investors, second-home buyers, and most company purchases pay an additional 5% on the entire purchase price on top of the standard bands. The surcharge was increased from 3% to 5% on 31 October 2024 in the Autumn Budget. So a £300,000 BTL property attracts £5,000 in standard SDLT plus £15,000 surcharge — a total of £20,000.
First-time buyer relief
If you (and any joint buyer) have never previously owned a residential property anywhere in the world, you qualify for first-time buyer relief. The bands are:
- 0% on the first £300,000
- 5% on £300,001 to £500,000
Properties over £500,000 lose the relief entirely — first-time buyers above that price pay standard rates on the full amount.
Worked example: £400,000 BTL purchase
A landlord buying a £400,000 buy-to-let pays:
- £0 on the first £125,000 (0%)
- £2,500 on the next £125,000 (£125,001–£250,000 @ 2%)
- £7,500 on the final £150,000 (£250,001–£400,000 @ 5%)
- Plus £20,000 additional property surcharge (5% of £400,000)
Total: £30,000. That's an effective rate of 7.5% — and a cost most novice investors materially underestimate when modelling deals.
Why SDLT matters in deal analysis
SDLT is one of the largest single line items in a UK property purchase, often more than legal fees, surveys, and refurb contingency combined. Getting it wrong by even a single band can flip a deal from positive to negative cashflow on day one. Always model SDLT at the right buyer-type rate before committing — and remember the surcharge is not deductible against rental income (it forms part of your acquisition cost basis when you eventually sell).
What this calculator doesn't cover
SDLT only applies to England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT), both with separate band structures. We also don't model commercial property SDLT, mixed-use rates, or multiple dwelling relief — speak to a conveyancer for those.
Frequently asked questions
When is SDLT due?
Stamp Duty Land Tax must be filed and paid within 14 days of the property completion date. Your conveyancer typically handles this on your behalf at completion.
Who pays the 5% additional property surcharge?
Anyone buying a residential property in England or Northern Ireland that isn't replacing their main home. This includes buy-to-let landlords, second-home buyers, and most companies. The surcharge was raised from 3% to 5% on 31 October 2024.
What is the first-time buyer relief?
First-time buyers pay no SDLT on the first £300,000 of a home purchase, and 5% on the portion between £300,000 and £500,000. The relief is withdrawn entirely if the property costs over £500,000 — at which point you pay full standard rates on the whole price.
Does this calculator work for Scotland or Wales?
No. This calculator covers England and Northern Ireland only. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT). Both have different bands and surcharges.
Can I claim back the additional property surcharge?
Yes — if you sell your previous main home within three years of buying the new one and the new property becomes your main residence, you can claim the 5% surcharge back from HMRC.
Is SDLT tax deductible against rental income?
No. SDLT is a capital cost, not a revenue expense, so it cannot be offset against rental income for income tax. However, it forms part of the property's acquisition cost and reduces the chargeable gain when you eventually sell.
What if I'm buying through a limited company?
Limited companies pay the additional property surcharge on every residential purchase, regardless of whether it's the company's first or only property. Two further considerations may apply on dwellings over £500,000 owned by a company: (1) a one-off flat 15% SDLT rate on a single residential purchase by a non-natural person, and (2) ATED, an annual banded charge on companies holding such dwellings. Both have reliefs for genuine property rental businesses, property developers, and property traders — which covers most BTL SPVs. Speak to a tax adviser to confirm which reliefs you qualify for.