Question 1

What is Stamp Duty Land Tax (SDLT)?

Accepted Answer

SDLT is a tax on property purchases in England and Northern Ireland. It uses a tiered structure where each portion of the purchase price is taxed at increasing rates — similar to income tax brackets. Scotland uses LBTT (Land and Buildings Transaction Tax) instead. Wales uses LTT (Land Transaction Tax).

Question 2

How does first-time buyer relief work?

Accepted Answer

First-time buyers in England pay 0% SDLT on the first £425,000 and 5% on £425,001–£625,000. There is no relief above £625,000 — standard rates apply to the full price. In Scotland, the LBTT nil-rate threshold is raised from £145,000 to £175,000 for first-time buyers.

Question 3

What is the additional property surcharge?

Accepted Answer

An additional 3% SDLT (or 6% ADS in Scotland) is charged on second homes, buy-to-let properties, and any residential property purchase where you already own another property. The surcharge applies to the full purchase price on top of the standard rates.

Question 4

Does the non-resident surcharge apply to me?

Accepted Answer

An extra 2% SDLT applies to non-UK residents purchasing residential property in England and Northern Ireland. 'Non-resident' is based on your residence for the period spanning 364 days before to 365 days after the purchase date. This can stack with the additional property surcharge.

Question 5

When do you pay Stamp Duty?

Accepted Answer

SDLT must be paid and a return filed within 14 days of completion. Your solicitor or conveyancer normally handles this on your behalf. Late payment attracts interest and penalties. No SDLT return is needed if the property is under the nil-rate threshold and no other circumstances apply.

Question 6

Can you get a Stamp Duty refund?

Accepted Answer

Yes, in some cases. If you buy a new main residence before selling your old one, you pay the additional 3% surcharge upfront — but can claim a refund within 12 months of selling your previous home (or 3 months from completion if later). Relief may also be available for mixed-use properties or multiple dwellings.

Band (£)	Rate	Taxable	Tax
0 – 125,000	0%	£125,000	£0
125,000 – 250,000	2%	£125,000	£2,500
250,000 – 925,000	5%	£100,000	£5,000

UK Stamp Duty Calculator

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