Stamp Duty Land Tax is one of the biggest one-off costs of buying. Here’s how it works, what changes the amount, and how to budget for it.
Stamp Duty Land Tax (SDLT) is the tax you pay when you buy property or land over a certain price in England and Northern Ireland. (Scotland and Wales have their own versions — Land and Buildings Transaction Tax and Land Transaction Tax.) It’s usually one of the larger one-off costs of buying, so it’s worth understanding before you make an offer.
SDLT is charged in bands, a bit like income tax. You don’t pay one flat percentage on the whole price — you pay nothing up to a threshold, then a rising percentage on the portion of the price that falls within each band. That means two buyers paying slightly different prices can owe very different amounts if a price tips over a band boundary.
SDLT thresholds and rates are changed by the government from time to time, sometimes at short notice in a Budget. Rather than print figures that could be out of date by the time you read this, use our free, always-current stamp duty calculator — pop in the price and whether you’re a first-time buyer and it gives you the figure on today’s rates.
Your conveyancer normally handles the SDLT return and payment for you as part of completion — you give them the funds and they submit it to HMRC. The return and payment are due within a set window after completion (currently 14 days), and missing it can mean penalties, which is another reason the legal side is best left to a professional.
Because stamp duty is paid on completion and can run into thousands of pounds, treat it as part of your upfront costs alongside the deposit, legal fees and survey — not an afterthought. Work it out early with the calculator so the final bill holds no surprises.
MoveWizard assesses any UK address — road, amenities, schools, safety, environment and a fair offer range.
Check a property — freeIt’s charged in bands: you pay nothing up to a threshold, then a rising percentage on the portion of the price in each band — not one flat rate on the whole price. Use our stamp duty calculator for the exact figure on current rates.
First-time buyers get relief up to a price cap, meaning a higher tax-free threshold. Above the cap the relief stops applying. The thresholds change, so always check current figures.
Your conveyancer usually submits the return and payment to HMRC for you within the required window after completion (currently 14 days). You provide the funds as part of completing the purchase.