What Is SDLT? Stamp Duty Land Tax Explained
SDLT stands for Stamp Duty Land Tax. It is the property purchase tax in England and Northern Ireland, administered and collected by HMRC. In property, SDLT means the tax a buyer may have to pay when buying freehold or leasehold residential property, land, commercial property, or mixed-use property. The buyer pays SDLT, never the seller. Scotland uses Land and Buildings Transaction Tax, and Wales uses Land Transaction Tax, so this SDLT calculator page covers England and Northern Ireland only.
What Does SDLT Stand For?
SDLT stands for Stamp Duty Land Tax.
What Does SDLT Mean in Property?
In property, SDLT is a tiered tax on chargeable land and property transactions. It applies to purchases above the relevant SDLT threshold and can vary by buyer type and property use.
When Was SDLT Introduced?
SDLT replaced the older stamp duty system in December 2003. The modern system is based on bands, thresholds, reliefs, and different rules for residential, additional, commercial, and mixed-use property.
Current SDLT Rates for England & Northern Ireland (2026)
Current SDLT rates are tiered. Each SDLT rate applies only to the slice of the price within that band. The April 2025 SDLT changes are now the live 2026 stamp duty rates, and no further changes have been announced as of May 2026. The SDLT thresholds below match the current HMRC residential property rates for England and Northern Ireland.
Residential SDLT Rate Bands
| Property value | SDLT rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Higher Rate SDLT – Second Homes & Buy-to-Let
| Property value | SDLT rate |
|---|---|
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1,500,000 | 15% |
| Over £1,500,000 | 17% |
SDLT Rates for Non-Residential & Commercial Property
| Property value | SDLT rate |
|---|---|
| Up to £150,000 | 0% |
| £150,001 to £250,000 | 2% |
| Over £250,000 | 5% |
How Is SDLT Calculated? Step-by-Step
SDLT is calculated in bands. You pay each rate only on the portion of the property price that falls within that SDLT band, not on the full price. For a £500,000 standard residential purchase in England, you pay 0% on the first £125,000, 2% on the next £125,000, and 5% on the remaining £250,000. That gives £2,500 plus £12,500, for total SDLT of £15,000. Use the SDLT calculator above to calculate SDLT automatically for residential, first time buyer SDLT, higher rate SDLT, commercial SDLT, and mixed-use purchases.
Is SDLT Calculated on Exchange or Completion?
SDLT is triggered on the effective date of the transaction, which is usually completion rather than exchange.
Does SDLT Include VAT?
Residential property is generally VAT exempt. Where VAT is payable on a land transaction, HMRC treats that VAT as part of the chargeable consideration for SDLT, so commercial property calculations can be more complex and professional advice is sensible.
Linked Transactions and SDLT
Linked transactions occur when multiple properties or land interests are bought from the same seller or connected sellers as part of one arrangement. HMRC may use the combined value to decide the SDLT bands. SDLT linked transactions are technical, so buyers should get professional advice.
SDLT for First Time Buyers – Relief & Thresholds
First time buyer SDLT relief is available in England and Northern Ireland on qualifying main residence purchases priced up to £500,000. The first time buyer SDLT rates are 0% on the first £300,000 and 5% on the portion from £300,001 to £500,000. If the price is over £500,000, standard SDLT rates apply in full and the relief is lost. When buying jointly, all buyers must be first time buyers.
SDLT First Time Buyer Relief – How It Works
| Property value | SDLT rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Over £500,000 | Standard rates apply (no relief) |
Do First Time Buyers Pay SDLT?
Yes, first time buyers can pay SDLT, but only on the portion above the relief threshold if the property is £500,000 or under. They are partially exempt, not fully exempt in every case. Scotland has separate LBTT first time buyer relief; Wales has no separate LTT first time buyer relief. Select "First Time Buyer" in the SDLT calculator above for an instant figure.
SDLT on Second Homes & Buy-to-Let Properties
SDLT on second homes and buy-to-let properties uses the higher-rate SDLT bands for additional dwellings. These rates are different from standard residential SDLT and can significantly increase the upfront cost of buying another property.
For a dedicated additional-property tool covering England and Northern Ireland, Scotland, and Wales, use our second home stamp duty calculator. If you paid higher rates while replacing your main residence, our stamp duty refund guide explains when a reclaim may be possible.
SDLT on Commercial Property & Mixed-Use
Commercial SDLT rates apply to non-residential property and mixed-use property, such as a shop with a flat above. Commercial property SDLT is different from residential SDLT and the higher rate surcharge for additional dwellings does not apply in the same way. A furnished holiday let is generally treated as residential for SDLT, although edge cases need professional advice. Commercial leases also have separate SDLT rules based on the net present value of rent.
| Property value | SDLT rate |
|---|---|
| Up to £150,000 | 0% |
| £150,001 to £250,000 | 2% |
| Over £250,000 | 5% |
How to Pay SDLT – Deadlines & Process
SDLT must be paid within 14 days of the effective date, which is usually completion. Late payment can trigger HMRC penalties and interest. In almost all residential transactions, your solicitor or conveyancer files the SDLT return and pays HMRC from funds you provide before completion. You can pay SDLT directly via the HMRC SDLT online portal, but most buyers use their conveyancer.
When Is SDLT Payable?
SDLT is payable within 14 days of the effective date.
How Long Do You Have to Pay SDLT?
For standard residential purchases, you have 14 days.
Can You Pay SDLT in Instalments?
Only in limited circumstances, such as certain leases or uncertain consideration. Standard residential purchases require full payment within 14 days. The buyer pays SDLT, not the seller.
SDLT Returns – How to File With HMRC
An SDLT return, usually the SDLT1 form, must be filed with HMRC within 14 days of completion, even if no SDLT is due. Exceptions exist, such as no chargeable consideration or certain exempt transactions, but buyers should seek professional advice before assuming no SDLT return is required. SDLT submission is normally handled online through the HMRC SDLT portal by your solicitor.
When Must an SDLT Return Be Filed?
An SDLT return must usually be filed within 14 days of completion.
How to Complete an SDLT Return
Most buyers do not complete the SDLT return themselves. Your solicitor uses HMRC SDLT guidance notes and files through the official SDLT online service. For SDLT login, SDLT log in, or HMRC SDLT login searches, go directly to HMRC.gov.uk.
How to Find Your SDLT Unique Transaction Reference Number (UTRN)
HMRC issues the UTRN after the SDLT return is submitted. It appears on the SDLT5 certificate your solicitor receives and may also be accessible through your HMRC online account.
SDLT Refunds – Can You Claim Back?
An SDLT refund may be possible if you paid the higher rate surcharge and sell your previous main residence within 3 years, if SDLT was overpaid because of a calculation error, or if the transaction is later rescinded or amended. Claims are made to HMRC and deadlines vary by claim type. HMRC often processes straightforward SDLT refund claims within around 15 to 20 working days, although complex cases can take longer. Use our stamp duty refund page for more detail.
FAQ Section: Questions You Might Have
What does SDLT stand for?
SDLT stands for Stamp Duty Land Tax. It is the property purchase tax applied to land and property transactions in England and Northern Ireland, administered by HMRC. Scotland uses LBTT and Wales uses LTT.
What is SDLT?
SDLT is a tiered tax paid by the buyer when purchasing property or land in England or Northern Ireland above the nil-rate threshold. The rate depends on the purchase price, the type of property, and whether you are a first time buyer, home mover, or purchasing an additional property.
What are the current SDLT rates in 2026?
The current standard residential SDLT rates are: 0% up to £125,000; 2% on £125,001 to £250,000; 5% on £250,001 to £925,000; 10% on £925,001 to £1.5 million; and 12% above £1.5 million. These rates have been in effect since the April 2025 changes and remain current as of May 2026.
Do first time buyers pay SDLT?
First time buyers in England and Northern Ireland pay no SDLT on the first £300,000 of a property priced up to £500,000, then 5% on the portion from £300,001 to £500,000. Above £500,000, standard rates apply with no relief.
When is SDLT payable?
SDLT must be paid within 14 days of the effective date of the transaction, which is usually the completion date. Your solicitor or conveyancer typically handles the payment to HMRC as part of the conveyancing process.
Is SDLT calculated on exchange or completion?
SDLT is triggered on the effective date of the transaction, which is normally the completion date, not the exchange date. The 14-day payment deadline runs from the effective date.
What is the SDLT return and when does it need to be filed?
An SDLT return must be submitted to HMRC within 14 days of completion, even if no SDLT is payable. It is filed online via the HMRC portal and your solicitor handles this in almost all residential transactions.
Who pays SDLT — the buyer or the seller?
The buyer always pays SDLT. The seller has no SDLT liability in a standard property sale.
Can you get an SDLT refund?
Yes, in certain circumstances. If you paid the higher rate because you had not yet sold your previous main residence, and you sell it within 3 years, you can reclaim the surcharge from HMRC. Claims must be submitted within the relevant HMRC deadline.
What is higher rate SDLT?
Higher rate SDLT applies to additional residential properties such as second homes and buy-to-let investments. It adds 5 percentage points on top of standard SDLT bands, giving effective rates of 5%, 7%, 10%, 15%, and 17% across the current bands.
How do I find my SDLT Unique Transaction Reference Number (UTRN)?
Your UTRN is issued by HMRC after your SDLT return is filed. It appears on the SDLT5 certificate your solicitor receives on completion and is also accessible through your HMRC online account.
Does SDLT apply to commercial property?
Yes. Commercial and non-residential property in England and Northern Ireland attracts SDLT at: 0% up to £150,000; 2% on £150,001 to £250,000; and 5% above that. Mixed-use properties also use these rates. Commercial leases have separate SDLT rules based on rent.
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