Question 1

What is Stamp Duty Land Tax and who pays it?

Accepted Answer

Stamp Duty Land Tax (SDLT) is a tax on the purchase of residential or commercial property and land in England and Northern Ireland. The buyer pays it, not the seller. The amount depends on the purchase price, whether you are a first-time buyer, whether you already own another property, and whether you are UK resident. Scotland charges Land and Buildings Transaction Tax (LBTT) instead, and Wales charges Land Transaction Tax (LTT).

Question 2

What are the current SDLT residential bands in England in 2026?

Accepted Answer

Following the April 2025 reset, the standard SDLT rates for a single residential property in England and Northern Ireland 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 £1.5 million
12% on anything above £1.5 million
These apply to home movers buying a property to replace their only or main residence.

Question 3

What first-time buyer SDLT relief is available?

Accepted Answer

Since the April 2025 changes, first-time buyers in England and Northern Ireland pay 0% on the first £300,000 of the purchase price, and 5% on the portion between £300,001 and £500,000. If the property costs more than £500,000, no first-time buyer relief applies and you pay the standard rates on the full price. All buyers named on the mortgage must be first-time buyers to qualify.

Question 4

How does the 3% second home and buy-to-let surcharge work?

Accepted Answer

If you are buying an additional residential property in England or Northern Ireland (a second home, holiday home, or buy-to-let), a 3% surcharge applies on top of every SDLT band. The surcharge applies if at the end of completion day you own two or more residential properties anywhere in the world and you are not replacing your main residence. The surcharge applies to the whole purchase price, including the first £125,000.

Question 5

Is there a non-resident SDLT surcharge?

Accepted Answer

Yes. Non-UK residents buying residential property in England or Northern Ireland pay an extra 2% on top of the standard rates and on top of any 3% additional-property surcharge. You are treated as non-resident if you have spent fewer than 183 days in the UK in the 12 months before the purchase. If you become UK resident in the 12 months after completion you may be able to claim the 2% back.

Question 6

What higher SDLT rates apply to companies and SPVs?

Accepted Answer

A company or other non-natural person buying a single residential property in England or Northern Ireland for more than £500,000 pays a flat 17% rate on the entire price (15% plus the 2% non-resident surcharge if applicable). This affects many SPVs and limited companies. There are exemptions for genuine rental businesses, property developers and trading companies, but these have strict conditions and any breach can claw back the relief.

Question 7

How are Wales (LTT) and Scotland (LBTT) different from SDLT?

Accepted Answer

Wales uses Land Transaction Tax (LTT). The main residential nil-rate band sits higher than SDLT, but there is no first-time buyer relief. Scotland uses Land and Buildings Transaction Tax (LBTT) with its own bands and a separate Additional Dwelling Supplement (currently 8%) on second homes and buy-to-lets. If you are buying in Wales or Scotland, this calculator does not apply and you should use the WRA or Revenue Scotland calculators instead.

Question 8

When does SDLT have to be paid?

Accepted Answer

SDLT must be filed and paid within 14 days of completion. Missing the deadline triggers automatic penalties and interest. The 14-day clock starts on the effective date of the transaction, which is usually the day of completion but can be earlier if you take substantial possession beforehand.

Question 9

Who actually files the SDLT return?

Accepted Answer

In practice your conveyancing solicitor or licensed conveyancer files the SDLT1 return with HMRC and pays the tax on your behalf, usually from completion funds held on your client account. You are still legally responsible for the return being accurate and on time, so always check the figures before completion.

Question 10

How is mixed-use property taxed for SDLT?

Accepted Answer

A mixed-use property contains both residential and non-residential elements, for example a shop with a flat above it. Mixed-use property is charged at the non-residential SDLT rates, which are generally lower than residential rates at higher prices and do not attract the 3% second-home surcharge. HMRC has tightened its view of what genuinely counts as mixed-use, so do not assume a small commercial element will requalify the whole purchase.

Question 11

What happened to Multiple Dwellings Relief (MDR)?

Accepted Answer

Multiple Dwellings Relief was abolished for transactions in England and Northern Ireland completing on or after 1 June 2024. Before then, buying two or more dwellings in a single transaction allowed SDLT to be calculated on the average price per dwelling, which often produced a significant saving. The relief no longer applies for new purchases. If you are buying multiple dwellings, speak to a specialist tax adviser, as the SDLT impact is now materially higher.

Question 12

What are linked transactions for SDLT?

Accepted Answer

Linked transactions are two or more property deals between the same buyer and seller, or connected parties, that form part of a single arrangement. HMRC treats them as one transaction for SDLT purposes, so the prices are added together and SDLT is charged on the combined total. This can push the deal into much higher rate bands than each property would have attracted individually. Buying multiple lots at auction from the same vendor is a common example.

Question 13

Can I reclaim SDLT if I pay the second home surcharge?

Accepted Answer

Yes. If you pay the 3% additional-property surcharge because you bought a new main residence before selling your previous one, you can reclaim the surcharge if you sell the previous main residence within 36 months of completion on the new home. The refund must be claimed within 12 months of the sale of the previous home, or within 12 months of the filing date for the new purchase, whichever is later. The claim is made to HMRC, usually by your solicitor.

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