What Is Stamp Duty Land Tax (SDLT)?
A tiered tax paid by property buyers in England and Northern Ireland, calculated on the purchase price.
Definition
Stamp Duty Land Tax (SDLT) is a property purchase tax levied by HMRC on residential and commercial transactions in England and Northern Ireland. It operates on a tiered, slice-based system: you pay 0% on the first £250,000, 5% on the portion from £250,001 to £925,000, 10% up to £1.5 million, and 12% above. First-time buyers pay 0% up to £425,000, then 5% up to £625,000. Buyers of additional properties pay an extra 5 percentage points on every band. Scotland uses Land and Buildings Transaction Tax (LBTT); Wales uses Land Transaction Tax (LTT). You must file and pay within 14 days of completion.
Formula
Example
A home buyer purchasing a £400,000 property as their main home pays: 0% on £250,000 = £0, plus 5% on £150,000 = £7,500. Total SDLT = £7,500 (effective rate 1.875%).