Stamp Duty Land Tax (SDLT) is charged on land and property transactions in the UK. The tax is charged at different rates and has different thresholds for different types of property and different values of transaction.
The tax rate and payment threshold can vary according to whether the property is in residential or non-residential use, and whether it is a freehold or leasehold. SDLT relief is available for certain kinds of property or transaction.
This guide provides an overview of the SDLT rates and provides links to related guidance where necessary.
On this page:
The table below applies for all freehold residential purchases and transfers and the premium paid for a new lease or the assignment of an existing lease. (If the property will be used for both residential and non-residential purposes the rates differ - please see the section 'SDLT for non-residential or mixed use property').
If the transaction involves the purchase of a new lease with a substantial rent there may be an additional SDLT charge to that shown below, based on the rent. See the next section and further table 'SDLT on rent for new leasehold properties (residential)' for more detail.
Purchase price/lease premium or transfer value |
SDLT rate |
SDLT rate for first-time buyers |
|---|---|---|
Up to £125,000 |
Zero |
Zero |
Over £125,000 to £250,000 |
1% |
Zero |
Over £250,000 to £500,000 |
3% |
3% |
Over £500,000 |
4% |
4% |
If the value is above the payment threshold, SDLT is charged at the appropriate rate on the whole of the amount paid. For example, a house bought for £130,000 (by someone who is not a first-time buyer) is charged at 1 per cent, so £1,300 must be paid in SDLT. A house bought for £350,000 is charged at 3 per cent, so SDLT of £10,500 is payable.
The first time buyer's £250,000 threshold applies from 25 March 2010 up to 24 March 2012 inclusive.
Note that between 3 September 2008 and 31 December 2009 the starting threshold for SDLT was £175,000 - higher than shown in the table above. The threshold was reduced back to £125,000 from 1 January 2010.
SDLT rates 3 Sept 2008 - 21 April 2009
Relief is available on transactions involving residential property in designated disadvantaged areas, where the effective date of the transaction is on or after 1 December 2003 and before 6 April 2013 and the chargeable consideration does not exceed £150,000.
All claims to this relief must be made on or before 5 May 2014. Claims made after that date will not be accepted.
Purchase price/lease premium or transfer value |
SDLT rate |
SDLT rate for first-time buyers |
|---|---|---|
Up to £150,000 |
Zero |
Zero |
Over £150,000 to £250,000 |
1% |
Zero |
Over £250,000 to £500,000 |
3% |
3% |
Over £500,000 |
4% |
4% |
From 25 March 2010 up to 24 March 2012, first-time buyers can claim a relief from SDLT if the amount paid for the property is under £250,000. This relief applies whether or not the property is in an area designated as disadvantaged.
Read more about Disadvantaged Areas Relief
When a new residential lease has a substantial annual rent, SDLT is payable on both of the following, which are calculated separately and then added together:
The NPV is based on the value of the total rent over the life of the lease and can be worked out using HMRC's online calculator (link below).
In practice SDLT only becomes payable on a fairly high rent - starting at around £4,500 a year for a 99-year lease, for example, however the exact amount depends on the length of the lease.
Net present value of rent - residential |
SDLT rate (includes first-time buyers) |
|---|---|
£0 - £125,000 |
Zero |
Over £125,000 |
1% of the value that exceeds £125,000 |
Note that a higher threshold of £175,000 applied for rents on residential only leases taken from 3 September 2008 to 31 December 2009. Follow the link below to find out more.
SDLT rates 3 Sept 2008 - 21 April 2009
Read more about calculating SDLT for leasehold purchases
Go to the SDLT lease calculator
If six or more properties form part of a single transaction the rules, rates and thresholds for non-residential properties apply. The amounts paid for all the properties in the transaction must be added together in order to establish the rate of tax payable.
Non-residential property includes:
A mixed use property is one that incorporates both residential and non-residential elements.
The table below applies for freehold and leasehold non-residential and mixed use purchases and transfers
If the transaction involves the purchase of a new lease with a substantial annual rent, there may be additional SDLT charge to that shown below, based on the rent. See the later section and table for more detail.
Purchase price/lease premium or transfer value (non-residential or mixed use) |
SDLT rate(includes first time buyers) |
|---|---|
Up to £150,000 - annual rent is under £1,000 |
Zero |
Up to £150,000 - annual rent is £1,000 or more |
1% |
Over £150,000 to £250,000 |
1% |
Over £250,000 to £500,000 |
3% |
Over £500,000 |
4% |
Note that for the above purpose the annual rent is the highest annual rent known to be payable in any year of the lease, not the net present value used to determine any tax payable on the rent as described below.
When a new non-residential or mixed use lease has a substantial annual rent, SDLT is payable on both of the following which are calculated separately and then added together:
Net present value of rent - non-residential |
SDLT rate(includes first time buyers) |
|---|---|
£0 - £150,000 |
Zero |
Over £150,000 |
1% of the value that exceeds £150,000 |
Read more about calculating SDLT for leasehold purchases
Go to the SDLT lease calculator
HMRC has developed online calculators which work out the amount of SDLT payable on residential, non-residential and mixed transactions in land and property.
Follow the links below to check SDLT and Stamp Duty rates in earlier tax years.
SDLT rates from 1 January 2010 until 24 March 2010
SDLT rates 22 April 2009 until 31 December 2009
SDLT rates 3 September 2008 until 21 April 2009
SDLT rates from 12 March 2008 until 2 September 2008
SDLT rates from 23 March 2006 until 11 March 2008
SDLT rates from 17 March 2005 until 22 March 2006
SDLT rates from 1 December 2003 until 16 March 2005
