Stamp Duty FAQ
Quick answers to the most common UK SDLT questions
Do I have to pay stamp duty?
Almost all buyers of residential property in England and Northern Ireland have to file an SDLT return, but plenty pay no tax. If you are a first-time buyer of a property worth £300,000 or less you pay nothing. A home mover pays nothing on the first £125,000 of the price and only the standard banded rates above that.
How is stamp duty calculated?
SDLT is charged in bands. You pay 0% on the portion of the price up to the first threshold, then progressively higher rates on each band above it. You don't pay the higher rate on the whole price — only on the slice that falls inside that band.
When is stamp duty due?
Within 14 days of the effective date of the transaction, which is normally completion. Your solicitor will file the SDLT return and pay HMRC on your behalf and add the figure to your completion statement.
Who counts as a first-time buyer?
To qualify, every buyer named on the purchase must never have owned a residential property anywhere in the world. That includes jointly-owned property, inherited property, and property in your name even if you've never lived in it. You must also intend to live in the new property as your only or main residence.
I own a property abroad — can I still claim FTB relief?
No. First-time-buyer relief is lost if you have ever owned a residential interest anywhere in the world, including overseas. Even a small share of a holiday home in your name disqualifies you.
My partner is a first-time buyer but I'm not. Can we claim?
No. Both buyers on the purchase must qualify as first-time buyers. If only one of you is, neither can claim the relief on that purchase.
I'm replacing my main home — do I pay the additional-property surcharge?
Not if you sell your old main residence on or before completion of the new one. If completion happens first, you pay the 5% surcharge initially, then claim a refund once you sell — provided the sale takes place within three years and you apply within the statutory window.
Can I get a refund of the additional-property surcharge?
Yes, in the replacement-of-main-residence scenario above. Apply to HMRC to amend the SDLT return; the deadline is the later of 12 months from the sale of the old home or 12 months from the SDLT filing date. Refunds typically take a few weeks to process.
What if I'm buying with a partner and only one of us owns another property?
The rules look at all buyers. If any of you owns another residential property, the whole purchase is treated as an additional-property purchase and the 5% surcharge applies — even if the other buyer is otherwise a first-time buyer.
Does the additional-property surcharge apply on a £30,000 buy-to-let?
No. The 5% surcharge only kicks in at purchase prices of £40,000 or more. Below that, standard rates apply (which on a £30,000 property come to £0).
What is the non-UK resident surcharge?
A 2% surcharge added to all SDLT bands when the buyer was not UK-resident in the 12 months ending on the day of completion. Residency for SDLT means being present in the UK for at least 183 days. The surcharge can be reclaimed if you become UK-resident in any continuous 365-day period falling in the two years either side of completion.
Are there exemptions from SDLT?
Yes. Common exemptions include property left in a will, transfers on divorce or separation made under a court order, and transfers between spouses or civil partners with no consideration. Gifts of property where there is no mortgage to take over are also outside the SDLT charge.
What about mixed-use properties (shop with a flat above)?
A property that is genuinely part residential and part commercial is taxed at the non-residential SDLT rates, which top out at 5%. HMRC takes a strict view of what counts as mixed-use and challenges aggressive claims regularly. Specialist advice is wise where the saving is significant.
What is multiple dwellings relief?
Multiple dwellings relief (MDR) used to allow buyers of two or more dwellings in a single transaction to pay SDLT based on the average price per dwelling. It was withdrawn for transactions completing on or after 1 June 2024 and no longer applies to current purchases.
Do I pay SDLT on a gifted property?
If the property is transferred to you with no money changing hands and no mortgage taken over, no SDLT is due. If you assume an existing mortgage, the outstanding balance counts as consideration for SDLT purposes and could trigger a charge.
I bought before 1 April 2025 — do I use the old or new rates?
SDLT is charged at the rates in force on the effective date of the transaction (usually completion). A purchase that completed before 1 April 2025 uses the temporary thresholds in place at the time. After 1 April 2025, the current rates apply.
Does this calculator work for Scotland or Wales?
No. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT). Both have different thresholds and rates. This calculator covers SDLT in England and Northern Ireland only.
How accurate is this calculator?
The calculator implements the published HMRC rates for residential property in England and Northern Ireland from 1 April 2025 onwards. It does not handle every edge case (mixed-use, shared ownership staircasing, linked transactions, corporate buyers, non-natural persons, etc.). For anything non-standard, always confirm the figure with a solicitor or HMRC.