14 days
Payment deadline
SDLT must be paid within 14 days of completion, not exchange. This catches many buyers out. Verify at GOV.UK — this deadline is set in law.
Banded
How rates are applied
You pay the applicable rate only on the portion of the price within each band, not on the whole purchase price.
April 2025
Last major threshold change
First-time buyer thresholds reverted to pre-2022 levels from 1 April 2025 after the October 2024 Budget. Always verify current thresholds at GOV.UK before relying on any figures.
How SDLT is calculated
SDLT works on a banded structure, similar to income tax. You pay each rate only on the portion of the purchase price that falls within that band, not on the total price.
The bands and rates themselves depend on your buyer category: standard buyer, first-time buyer, or additional property buyer. Each category has its own thresholds and rates. Always verify the current figures at GOV.UK SDLT rates before exchanging contracts.
Worked example (indicative only — verify current rates at GOV.UK): On a £300,000 purchase by a standard buyer, SDLT is charged on each band separately. The first slice (up to the nil-rate threshold) is taxed at 0%, the next slice at the next band's rate, and so on. The total SDLT is the sum of the tax on each slice, not the top rate applied to the whole £300,000. This structure means most buyers pay less than the top rate implies.
Use the HMRC SDLT calculator to get the exact figure for your purchase. Parce does not replicate the official calculator — the HMRC tool gives you the precise number for your situation.
SDLT is due 14 days from completion, not exchange
Most buyers assume stamp duty is paid when they sign contracts. It is not. SDLT is due within 14 days of the completion date, the day you get the keys. Your solicitor or conveyancer normally handles the payment and submission on your behalf, but it is worth confirming this is covered in their service. Miss the 14-day deadline and automatic penalties apply, even if the delay was not your fault. This is one of the most common SDLT mistakes. See GOV.UK SDLT deadlines.
First-time buyers
If you have never owned property anywhere in the world, you may qualify for first-time buyer relief. This reduces or eliminates SDLT on purchases up to a certain price. The thresholds and conditions are set by HMRC — verify the current figures at GOV.UK first-time buyer relief.
The October 2024 Budget changed the first-time buyer relief thresholds, and they reverted to pre-2022 levels from 1 April 2025. Anyone who researched first-time buyer SDLT before April 2025 should check the current position before proceeding.
Never owned property anywhere in the world — that includes abroad
The first-time buyer definition is strict. If you have ever owned a residential property anywhere — in the UK, abroad, inherited, or as a part share — you do not qualify for first-time buyer relief. This rule catches people who own overseas property, those who have inherited a share of a property, and joint buyers where one person has previously owned. If there is any doubt, clarify your position with your solicitor before exchange.
Buying an additional property
If you are buying a second home, a buy-to-let property, or any property that is not your only residential property, a surcharge applies on top of the standard SDLT rates. The surcharge rate increased in the October 2024 Budget. Verify the current surcharge rate at GOV.UK SDLT on additional properties.
There is a replacement main residence rule: if you are buying a new main home before you have sold your previous one, you pay the additional property surcharge at completion, then claim a refund if you sell the old property within a set time limit. Verify the current time limit at GOV.UK — the applicable window is set by HMRC and has changed.
The additional property surcharge changed in October 2024
The surcharge on second homes and buy-to-let purchases increased in the October 2024 Budget. Anyone who last checked the additional property rules before that date may have an outdated figure in mind. Verify the current rate at GOV.UK before completing any calculations. SDLT additional property rates on GOV.UK.
Scotland and Wales
SDLT only applies in England and Northern Ireland.
Scotland uses Land and Buildings Transaction Tax (LBTT), administered by Revenue Scotland. Check rates and thresholds at Revenue Scotland.
Wales uses Land Transaction Tax (LTT), administered by the Welsh Revenue Authority. Check rates at Welsh Revenue Authority.
The rates, thresholds, and first-time buyer reliefs differ in each country. Do not use SDLT figures for Scottish or Welsh purchases.
Non-UK residents
A 2% surcharge on top of the standard SDLT rates applies to non-UK resident buyers of residential property in England and Northern Ireland. This affects overseas buyers and UK citizens who have been living abroad for a period that crosses the residency threshold. Verify the current definition of non-UK residency at GOV.UK SDLT non-UK residents.
When SDLT does not apply
Some property transactions are exempt from SDLT or charged at zero:
- Transfers between spouses and civil partners as part of a divorce or separation settlement (no SDLT payable)
- Gifts with no payment of money or money's worth changing hands
- Transactions below the nil-rate threshold (subject to current thresholds — verify at GOV.UK)
- Leases with a low rent and short term (some exemptions apply — verify)
Your solicitor will advise on whether any exemption applies to your transaction. GOV.UK SDLT exemptions.
A conveyancing guide is coming to Parce
If you are buying property, you will need a conveyancing solicitor. A plain-language guide to what conveyancers do, how they are paid, and what to look for is coming to Parce. In the meantime, the GOV.UK guide to buying a home covers the full process.
Get notified when stamp duty thresholds change — we'll explain what it means for buyers.
Common questions about stamp duty
Do I pay stamp duty on my first home?▾
If you have never owned property anywhere in the world, you may qualify for first-time buyer relief, which reduces or eliminates SDLT up to a price threshold. The thresholds changed in the October 2024 Budget and reverted from 1 April 2025, so check the current figures at GOV.UK before you rely on any number you have seen elsewhere.
When do I have to pay stamp duty?▾
Within 14 days of completion, the day you receive the keys. This is not the exchange date. Your solicitor or conveyancer usually handles the payment on your behalf, but it is worth confirming this is part of their service. Late payment triggers automatic penalties from HMRC.
What happens if I miss the stamp duty deadline?▾
HMRC charges automatic penalties for late SDLT returns and payments. Penalties can escalate the longer the payment is outstanding. Interest is also charged on any unpaid amount. If your solicitor is handling the SDLT return, a missed deadline could indicate a problem with their service — confirm with them that the return was submitted on time. See GOV.UK for current penalty rates.
Do I pay stamp duty on a buy-to-let?▾
Yes, and at a higher rate. An additional property surcharge applies on top of the standard SDLT rates. The surcharge increased in the October 2024 Budget. Verify the current rate at GOV.UK before you complete any calculations — it is one of the most commonly used out-of-date figures in property tax research.
Can I reclaim stamp duty if I sell my old home within a year?▾
If you paid the additional property surcharge because you completed on a new main home before selling your old one, you may be able to claim a refund once the old property sells. A time limit applies for making the refund claim. Verify the current time limit and refund process at GOV.UK — the rules around this replacement main residence relief are specific and have changed.
Does stamp duty apply in Scotland and Wales?▾
No. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT). Northern Ireland uses SDLT, the same as England. Check the Scottish and Welsh rates at the Revenue Scotland and Welsh Revenue Authority websites respectively — the thresholds and rates differ from England.
Do I pay stamp duty on a shared ownership property?▾
The rules for shared ownership SDLT are more complex than for outright purchases. You can pay SDLT on just the share you are buying initially, or make a one-off payment on the full market value. Verify the current options and thresholds at GOV.UK — shared ownership SDLT has its own set of rules and first-time buyer relief applies differently.
Is stamp duty charged on remortgages?▾
No. Remortgaging does not involve a change in property ownership, so SDLT does not apply. Stamp duty is only payable when a property is purchased or transferred.