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Stamp Duty Land Tax: Top 50 FAQs
A practical guide for property buyers, investors and professional advisers, covering SDLT rates, first-time buyers, the additional-dwellings and non-resident surcharges, mixed-use property, leases, transfers and repayment claims.
Last reviewed: August 2026. General information only.
SDLT basics, rates and calculations
What is Stamp Duty Land Tax?
SDLT is a transaction tax charged on acquisitions of land and property in England and Northern Ireland. It can apply to freehold purchases, leasehold transactions, shared ownership purchases and transfers where money or other chargeable consideration is given.
Does SDLT apply in Scotland or Wales?
No. Scotland uses Land and Buildings Transaction Tax, while Wales uses Land Transaction Tax. SDLT applies only to land transactions in England and Northern Ireland.
Who is responsible for paying SDLT?
The purchaser is legally responsible. A solicitor or conveyancer will usually calculate the tax, file the return and arrange payment, but the underlying liability remains the purchaser’s.
How is SDLT calculated?
For most purchases, SDLT is calculated using progressive bands. Each part of the chargeable consideration is taxed at the rate applicable to that band, rather than applying one rate to the whole price.
What are the standard residential SDLT rates?
The standard residential rates are:
- Up to £125,000: 0%
- £125,001 to £250,000: 2%
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Above £1.5 million: 12%
Higher rates may apply to additional dwellings, companies and non-UK resident purchasers.
What is chargeable consideration?
Chargeable consideration is what the purchaser gives for the land transaction. It is not necessarily limited to the stated purchase price. It can include:
- Cash
- Assumption or transfer of mortgage debt
- Release of a debt
- Goods
- Works or services
- Other money’s worth
Is SDLT based on the purchase price or market value?
Usually it is based on chargeable consideration. However, market-value rules can apply in particular circumstances, including certain acquisitions by connected companies and some partnership or corporate transactions.
Do chattels attract SDLT?
Genuine moveable items are normally outside the SDLT charge. Examples can include freestanding furniture, curtains and certain appliances. Fixtures forming part of the land are not excluded. Any apportionment should be reasonable, properly evidenced and reflect market value.
Can I rely on an online SDLT calculator?
A calculator is useful for straightforward transactions, but it may not determine property classification, higher rates, main-residence replacement, trusts, companies, partnerships, lease rent, linked transactions or reliefs. Complex cases require analysis of the law, documents and facts.
First-time buyers
Who qualifies as a first-time buyer?
Broadly, a first-time buyer is an individual who has never previously acquired a major interest in a dwelling anywhere in the world and intends to occupy the purchased dwelling as their only or main residence. Previous ownership may include property acquired individually, jointly, by inheritance, by gift, overseas or through certain trust interests.
What is First-Time Buyers' Relief?
Where the conditions are met and the price does not exceed £500,000, the first £300,000 is charged at 0% and the portion from £300,001 to £500,000 is charged at 5%. If the price is above £500,000, the relief is unavailable and the normal rates apply to the whole transaction.
What if only one joint purchaser is a first-time buyer?
All purchasers must satisfy the first-time buyer conditions. If one purchaser has previously owned a dwelling, the transaction will not qualify for First-Time Buyers’ Relief.
Does inherited property prevent First-Time Buyers' Relief?
It can. A person who has inherited a major interest in a dwelling may no longer be a first-time buyer, even if they did not purchase the inherited property and have never occupied it.
Does owning property overseas affect first-time buyer status?
Yes. Previous residential property ownership anywhere in the world is relevant. A person who has owned a home, rental property or other qualifying dwelling overseas will not normally be a first-time buyer.
Can a first-time buyer claim relief on a buy-to-let?
No. The purchaser must intend to occupy the property as their only or main residence. A property acquired solely for letting will not satisfy that condition.
Can First-Time Buyers' Relief apply to shared ownership?
Yes. Relief may be available where the purchaser satisfies the first-time buyer conditions, intends to occupy the dwelling as their main residence and the relevant market-value limit is not exceeded. The result also depends on whether SDLT is paid on market value or in stages.
Second homes, buy-to-let and the 5% surcharge
When does the additional-property surcharge apply?
The higher rates can apply where an individual acquires a major interest in a dwelling costing £40,000 or more, owns a major interest in another dwelling worth £40,000 or more at the end of the transaction, is not treated as replacing an only or main residence and no other exception applies.
What are the higher residential SDLT rates?
The additional-property rates are normally 5 percentage points above the standard residential rates:
- Up to £125,000: 5%
- £125,001 to £250,000: 7%
- £250,001 to £925,000: 10%
- £925,001 to £1.5 million: 15%
- Above £1.5 million: 17%
Does a buy-to-let property attract the higher rates?
Usually yes, where the purchaser will own another dwelling at completion. The fact that the new property is an investment rather than a holiday home does not prevent the surcharge applying.
Does a holiday home attract the higher rates?
Usually yes, if it is an additional dwelling. Intended occupation for weekends or holidays does not itself provide an exemption.
Are overseas properties counted?
Yes. Residential property interests held anywhere in the world can be relevant when deciding whether the purchaser owns another dwelling.
Does a small share in another property count?
A major interest worth less than £40,000 is generally disregarded for the additional-dwelling test. The valuation concerns the purchaser’s interest, not necessarily the value of the whole property.
Does inherited property trigger the surcharge?
It can. Special rules may disregard an inherited interest of no more than 50% for a limited period when applying the additional-dwelling conditions. Outside those rules, an inherited major interest may count.
What happens when two people buy jointly and only one owns another property?
If the higher-rate conditions apply to any one of the joint purchasers, the higher rates generally apply to the whole transaction, not merely that purchaser’s share.
Are married couples treated separately?
Spouses and civil partners living together are generally treated as a single unit for the higher-rates rules. A property owned by one spouse may therefore affect the SDLT treatment of a purchase by the other, subject to the statutory separation rules.
When are spouses treated as separated for SDLT?
The legislation recognises separation under a court order, by a formal deed of separation, or in circumstances where the separation is likely to be permanent. Simply living at separate addresses does not automatically settle the question.
Are unmarried couples treated as one person?
No, not merely because they live together. Each unmarried purchaser’s property interests are initially considered separately. However, if they buy jointly, the entire acquisition may bear the higher rates if either purchaser meets the surcharge conditions.
Main residence replacement and refunds
What is a replacement of a main residence?
Broadly, the replacement exception may apply where the purchaser disposes of a previous only or main residence and acquires a new only or main residence within the statutory conditions. The analysis is fact-sensitive and is not determined simply by calling a property the main residence.
Can I reclaim the surcharge after selling my old home?
Potentially. Where the higher rates were paid because the former main residence had not yet been sold, a refund may be available if the old residence is disposed of within the applicable statutory period and the other replacement conditions are satisfied. A repayment claim must be submitted within the permitted claim period.
Companies, trusts and non-residents
Do companies always pay the 5% higher rates?
Companies purchasing dwellings for £40,000 or more are generally subject to the higher residential rates, even if the company owns no other residential property.
When can the 15% flat corporate rate apply?
A 15% flat rate can apply when certain non-natural persons, including companies, acquire high-value dwellings. Statutory reliefs may apply, including for qualifying property rental, development, trading or certain other business activities. The conditions must be reviewed carefully.
What is the non-UK resident SDLT surcharge?
A 2% surcharge can apply to purchases of residential property in England and Northern Ireland by non-UK resident purchasers. It is added to the rates that would otherwise apply, including the additional-property rates where relevant.
Is SDLT residence the same as income-tax residence?
No. SDLT has its own residence tests. For an individual, the test generally looks at presence in the UK during a specified 12-month period connected with the transaction.
Can a non-resident buyer reclaim the 2% surcharge?
Potentially. An individual who becomes UK resident for SDLT purposes during the relevant post-completion period may be able to claim repayment, provided the statutory conditions and time limits are met.
How does SDLT apply to trusts?
The treatment depends on the trust and the beneficiary’s rights. Different rules can apply to bare trusts, life-interest or interest-in-possession trusts, discretionary trusts, settlements for minor children and acquisitions by trustees. The beneficial ownership and statutory purchaser must be identified before calculating SDLT.
Transfers, gifts and mortgages
Is SDLT payable on a gift of property?
A pure gift with no money, debt assumption or other consideration is normally exempt and may not require an SDLT return. However, taking responsibility for an existing mortgage can constitute chargeable consideration.
Is SDLT payable on a transfer of equity?
It can be. SDLT is based on the consideration given for the interest transferred. This may include a cash payment, taking over a share of secured debt, releasing the transferor from mortgage liability or other consideration.
How is mortgage debt treated?
Where the transferee takes on responsibility for mortgage debt, the relevant proportion of the debt can be chargeable consideration. The calculation depends on the legal arrangements and interests transferred, not merely the parties’ informal understanding.
Is SDLT payable when property is transferred between spouses?
There is no general SDLT exemption merely because the parties are married. A transfer between spouses can be chargeable where consideration is given, including mortgage debt assumed.
Is there an exemption on divorce or dissolution?
A transfer made in connection with divorce, judicial separation or dissolution of a civil partnership may be exempt where it is made under a qualifying court order or agreement falling within the statutory provisions. Transfers outside those conditions require separate analysis.
Is SDLT payable when property passes under a will?
Property passing directly under a will, intestacy or qualifying variation of testamentary dispositions is generally outside the SDLT charge, provided no disqualifying consideration is given.
Does remortgaging trigger SDLT?
A straightforward remortgage with no change in beneficial ownership normally does not. SDLT may arise if the remortgage accompanies a transfer of ownership or another land transaction involving chargeable consideration.
Mixed-use, property condition, leases and linked transactions
What is a residential property for SDLT?
Broadly, residential property includes a building used or suitable for use as a dwelling, a building being constructed or adapted for use as a dwelling, and land forming part of its garden or grounds. Suitability and use are fact-sensitive legal questions.
What is a mixed-use property?
A mixed-use transaction includes both residential and non-residential property. Examples may include a shop with a flat, a house acquired with genuinely commercial premises, or residential land acquired with a separate non-residential element. Extensive land or an outbuilding does not automatically make a transaction mixed-use.
Can a derelict or uninhabitable house be non-residential?
Possibly, but the threshold is demanding. The statutory question is whether the building is used or suitable for use as a dwelling at the effective date. A need for modernisation, a replacement kitchen or bathroom, heating repairs, rewiring or general refurbishment does not by itself necessarily make it unsuitable for use as a dwelling.
How is SDLT calculated on a new lease?
SDLT on a new lease can have two separate components: tax on the lease premium and tax on the net present value of the rent. Residential and non-residential rules and thresholds differ. A return may be required even where little or no tax is payable.
What are linked transactions?
Transactions are potentially linked where they form part of a single scheme, arrangement or series and are between the same buyer and seller, or persons connected with them. The consideration may have to be aggregated to determine the rate, with the tax apportioned between transactions.
Reliefs, returns, amendments and repayment claims
When must SDLT be paid?
The SDLT return and payment must normally reach HMRC within 14 days of the effective date. The effective date is often completion, although it can be earlier if the contract is substantially performed.
Is Multiple Dwellings Relief still available?
For most transactions completing on or after 1 June 2024, no. MDR was abolished, subject to transitional protection for certain contracts exchanged on or before 6 March 2024 that were not subsequently varied or assigned in a disqualifying way. Historic transactions must be considered under the law applicable at their effective date.
Can I amend a return or reclaim overpaid SDLT?
Potentially. A return can normally be amended within the statutory amendment window. Specific repayment procedures apply to some surcharges, and overpayment relief may be available in qualifying cases after the amendment window. HMRC may enquire into the return or repayment claim, and the taxpayer must calculate and support the amount claimed.
Important: This page provides general information only. SDLT depends on the legal rights acquired, the consideration given, the buyer’s circumstances, the property and the law applying at the effective date. Transaction-specific advice should be obtained before completion, amendment of a return or submission of a repayment claim.
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