SDLT bands and how to read them
SDLT is "slice" taxation - each portion of the price falls in a band with its own rate, not the whole price at one rate.
| Standard residential 2026 bands (England + NI) | Worked example - GBP 500,000 home, standard buyer | Worked example - GBP 750,000 home | Worked example - GBP 1,200,000 home |
|---|---|---|---|
| 0% on first GBP 125,000 | 0% on GBP 125,000 = GBP 0 | GBP 0 + GBP 2,500 + (5% on GBP 500K) = GBP 25,000 + GBP 2,500 = GBP 27,500 | GBP 0 + GBP 2,500 + GBP 33,750 + (10% on GBP 275K) = GBP 63,750 |
| 2% on GBP 125,001 - GBP 250,000 (GBP 2,500 max in this band) | 2% on GBP 125,000 (the GBP 125,001-250,000 portion) = GBP 2,500 | ||
| 5% on GBP 250,001 - GBP 925,000 (max GBP 33,750) | 5% on GBP 250,000 (the GBP 250,001-500,000 portion) = GBP 12,500 | ||
| 10% on GBP 925,001 - GBP 1,500,000 (max GBP 57,500) | Total SDLT: GBP 15,000 | ||
| 12% on above GBP 1,500,000 | Effective rate: 3.0% |
The temporary higher nil-rate threshold (GBP 250K for everyone, GBP 425K for first-time buyers) expired April 1, 2025. The lower thresholds returned for purchases completing April 1, 2025 onward.
Useful rule of thumb
- GBP 250K home: GBP 2,500 SDLT (1%)
- GBP 500K home: GBP 15,000 SDLT (3%)
- GBP 750K home: GBP 27,500 (3.7%)
- GBP 1M home: GBP 41,250 (4.1%)
- GBP 2M home: GBP 153,750 (7.7%)
First-time buyer relief
First-time buyer (FTB) relief: nil rate up to GBP 300,000, 5% on GBP 300,001 to GBP 500,000. Above GBP 500,000: standard rates apply on the entire price (no relief).
| Qualification | Worked example - first-time buyer, GBP 400K home | Worked example - first-time buyer, GBP 500K home | Worked example - first-time buyer, GBP 650K home (NO relief because over GBP 625K) |
|---|---|---|---|
| Must be first time buying ANY property anywhere in the world (NOT just UK) | 0% on first GBP 300,000 = GBP 0 | 0% on first GBP 300K = GBP 0 | Standard SDLT applies on full GBP 650K |
| All buyers on the title must be first-time buyers (if you co-buy with someone who has owned property, full SDLT applies) | 5% on GBP 100,000 (GBP 300-400K) = GBP 5,000 | 5% on GBP 200K = GBP 10,000 | GBP 0 + GBP 2,500 + (5% on GBP 400K) = GBP 22,500 |
| Purchase price must be GBP 625,000 OR LESS (above that, no relief at all) | Total SDLT: GBP 5,000 | Total: GBP 10,000 | Compared to relief-eligible GBP 624K: GBP 0 + (5% on GBP 200K + 2% on GBP 124K) = GBP 10K |
| Must use property as main residence (NOT buy-to-let) | Saving vs standard: GBP 10,000 - GBP 5,000 = GBP 5,000 saving | Standard would be: GBP 15,000 | "Cliff edge" at GBP 625K: GBP 12.5K extra SDLT for buying GBP 1 over |
| Saving: GBP 5,000 |
Strategy: if you would qualify and the seller is willing, negotiate purchase below GBP 625K (e.g. some items "sold separately" as chattels - fittings, furniture).
| Price band | Standard rate | FTB rate | Second-home rate |
|---|---|---|---|
| Up to GBP 125,000 | 0% | 0% | 5% |
| GBP 125,001 - 250,000 | 2% | 0% (under GBP 300K) | 7% |
| GBP 250,001 - 925,000 | 5% | 5% (GBP 300-500K) | 10% |
| GBP 925,001 - 1,500,000 | 10% | Standard | 15% |
| Above GBP 1,500,000 | 12% | Standard | 17% |
Second-home / buy-to-let surcharge
If you ALREADY own residential property (anywhere in the world) and are buying ANOTHER residential property, you face an extra SDLT surcharge - the "Higher Rates for Additional Dwellings" (HRAD).
Surcharge rate (October 2024 Budget): 5% on the ENTIRE purchase price.
| Worked example - landlord buying GBP 500K rental property | Worked example - buying second home GBP 350K (already own GBP 600K main home) | Exceptions to surcharge |
|---|---|---|
| Standard SDLT: GBP 15,000 | Standard SDLT on GBP 350K: GBP 0 + GBP 2,500 + (5% on GBP 100K) = GBP 7,500 | Replacing main residence: if you sell your old main home within 36 months of buying the new one, surcharge is REFUNDED. Plan timing carefully. |
| Surcharge: 5% on GBP 500K = GBP 25,000 | Surcharge: 5% on GBP 350K = GBP 17,500 | Married couples / civil partners count as ONE buyer. If your spouse owns a property elsewhere, you also count as already-owning. |
| Total: GBP 40,000 | Total: GBP 25,000 | Inherited property within last 36 months: counts as already-owning (but partial exemptions exist). |
| Effective rate: 8.0% | Property under GBP 40,000: surcharge not applicable. | |
| Mobile homes, houseboats: surcharge not applicable. | ||
| Mixed-use property (residential + commercial): not subject to surcharge. |
Reclaiming the surcharge: file claim within 3 months of sale of old main home using SDLT-LOR form. Quick refund if eligible.
Non-resident surcharge + LBTT/LTT
Non-resident SDLT surcharge: extra 2% on ALL residential purchases by non-UK residents. Applied IN ADDITION to second-home surcharge if both apply.
Non-resident definition: not present in UK 183+ days during the 12-month period BEFORE the transaction completion date (with some look-back rules for the prior tax year).
| Worked example - non-resident buyer, GBP 500K home | Worked example - non-resident landlord buying GBP 500K rental |
|---|---|
| Standard SDLT: GBP 15,000 | Standard: GBP 15,000 |
| Non-resident surcharge: 2% on GBP 500K = GBP 10,000 | Second-home: GBP 25,000 |
| Total: GBP 25,000 | Non-resident: GBP 10,000 |
| Total: GBP 50,000 | |
| Effective rate: 10.0% |
Reclaiming non-resident surcharge: if you become UK resident in the 12 months after purchase (183+ days in UK), claim refund within 12 months of becoming resident.
| Scotland (Land and Buildings Transaction Tax - LBTT) | Wales (Land Transaction Tax - LTT) |
|---|---|
| Bands and rates differ. 0% to GBP 145,000, 2% to GBP 250K, 5% to GBP 325K, 10% to GBP 750K, 12% above | 0% to GBP 225,000 (raised), 6% to GBP 400K, 7.5% to GBP 750K, 10% to GBP 1.5M, 12% above |
| First-time buyer relief: 0% to GBP 175,000 | NO first-time buyer relief (Wales decided not to offer) |
| Additional Dwelling Supplement: 8% (raised from 6% in 2024) | Higher Rates (additional dwellings): 4-15%, slice-based |
Common SDLT mistakes
- Forgetting your spouse counts as a co-buyer for second-home surcharge. If your spouse owns a flat, your "first" home purchase together triggers surcharge.
- Assuming first-time buyer relief works above GBP 625K. It does not - cliff edge at GBP 625K, full standard SDLT applies above.
- Buying property abroad disqualifies first-time buyer relief in UK. Even a 1% share in a property in another country counts.
- Trying to "save" SDLT by underdeclaring price. HMRC matches Land Registry data; fraudulent declaration triggers penalty + criminal liability.
- Allocating value to chattels (fittings, furniture) excessively. Items not "fixed" to the home (furniture, free-standing appliances) can be excluded from SDLT, but must be genuine arms-length pricing. HMRC will challenge inflated chattels values.
- Forgetting to claim refund after selling old main home within 36 months. SDLT-LOR form, deadline 12 months from completion of new home or 3 months from sale of old, whichever later.
- Missing 14-day SDLT submission deadline. Triggers penalty + interest.
- Not paying SDLT before requesting Land Registry transfer. Conveyancer typically handles this; verify.
- Buying a "fixer-upper" below GBP 250K but with renovation costs putting total over GBP 250K. SDLT is on purchase price, not improvement cost. Renovation cost separate.
- Higher-rate threshold confusion: assuming GBP 250K higher nil-rate still applies post-April 2025. It does not - GBP 125K is back.
Run the math for your situation
Use our GB calculator to plug in your own numbers.