Stamp Duty Guide
Stamp Duty Guide
Stamp Duty (and its equivalents across the UK) is a property transaction tax paid when you buy land or property. Each UK nation sets its own system and rates, with different thresholds, reliefs, and surcharges that can significantly impact your purchase costs.
This guide explains how stamp duty works across England, Scotland, and Wales, helping you understand the rates, calculate your liability, and identify potential reliefs or surcharges that apply to your situation.
For details on how the calculator computes results, see the Stamp Duty Calculator Methodology.
What Is Stamp Duty?
Each UK nation sets its own system and rates:
- England & Northern Ireland: Stamp Duty Land Tax (SDLT)
- Scotland: Land and Buildings Transaction Tax (LBTT)
- Wales: Land Transaction Tax (LTT)
These taxes are progressive, meaning the rate increases per band of the purchase price.
How It Works – The Core Concept
Stamp duty is charged per price slice, not as a flat rate on the total value.
Example: £400,000 residential purchase in England (no surcharges).
| Band | Rate | Tax |
|---|---|---|
| £0–125,000 | 0% | £0 |
| £125,001–250,000 | 2% | £2,500 |
| £250,001–400,000 | 5% | £7,500 |
| Total | — | £10,000 |
💡 Tip: Use our Stamp Duty Calculator to estimate your liability instantly across all UK jurisdictions.
Advanced Concept:
Each slice of the purchase price is taxed at its own rate. The total stamp duty is the sum of all individual band amounts.
England & Northern Ireland – SDLT
Overview
- Authority: HMRC
- Filing Deadline: 14 days from completion
- Portal: HMRC SDLT Portal
Residential Rates (Standard Buyer)
| Band | Rate |
|---|---|
| £0–125,000 | 0% |
| £125,001–250,000 | 2% |
| £250,001–925,000 | 5% |
| £925,001–1,500,000 | 10% |
| £1,500,001+ | 12% |
Reliefs
First-Time Buyer Relief:
- 0% up to £300,000
- 5% on £300,001–£500,000
- No relief above £500,000
Surcharges
| Surcharge Type | Rate | Applies To |
|---|---|---|
| Additional Property | +3% | Second homes |
| Non-UK Resident | +2% | All residential purchases |
Corporate Purchases
- Properties < £500,000: Higher rates (5–15%)
- Properties ≥ £500,000: Flat 17% rate
- Non-UK corporates: +2% surcharge
Non-Residential / Mixed-Use
| Band | Rate |
|---|---|
| £0–150,000 | 0% |
| £150,001–250,000 | 2% |
| £250,001+ | 5% |
Mixed-use properties follow non-residential rates.
Scotland – LBTT
Overview
- Authority: Revenue Scotland
- Filing Deadline: 30 days
- Portal: Revenue Scotland LBTT
Residential Rates
| Band | Rate |
|---|---|
| £0–145,000 | 0% |
| £145,001–250,000 | 2% |
| £250,001–325,000 | 5% |
| £325,001–750,000 | 10% |
| £750,001+ | 12% |
Reliefs
First-Time Buyer Relief: Nil-rate band extends to £175,000.
Surcharges
| Type | Rate | Applies To |
|---|---|---|
| Additional Dwelling Supplement (ADS) | 8% | Second homes |
Non-Residential / Mixed-Use
| Band | Rate |
|---|---|
| £0–150,000 | 0% |
| £150,001–250,000 | 1% |
| £250,001+ | 5% |
Mixed-use properties are taxed under non-residential rates.
Wales – LTT
Overview
- Authority: Welsh Revenue Authority (WRA)
- Filing Deadline: 30 days
- Portal: WRA LTT Portal
Residential Rates (Main Home)
| Band | Rate |
|---|---|
| £0–225,000 | 0% |
| £225,001–400,000 | 6% |
| £400,001–750,000 | 7.5% |
| £750,001–1,500,000 | 10% |
| £1,500,001+ | 12% |
Additional Property Rates (Alternate Table)
| Band | Rate |
|---|---|
| £0–225,000 | 5% |
| £225,001–400,000 | 8.5% |
| £400,001–750,000 | 10% |
| £750,001–1,500,000 | 12.5% |
| £1,500,001+ | 17% |
Non-Residential / Mixed-Use
| Band | Rate |
|---|---|
| £0–225,000 | 0% |
| £225,001–250,000 | 1% |
| £250,001–1,000,000 | 5% |
| £1,000,001+ | 6% |
Cross-Jurisdiction Comparison
| Feature | England & NI | Scotland | Wales |
|---|---|---|---|
| Tax Name | SDLT | LBTT | LTT |
| Admin Body | HMRC | Revenue Scotland | WRA |
| Filing Deadline | 14 days | 30 days | 30 days |
| Surcharge for Second Homes | +3% | +8% (flat) | Alternate table |
| Non-UK Surcharge | +2% | None | None |
| Corporate Higher Rate | Yes | No | No |
Filing & Compliance
- England/NI: File via HMRC Portal within 14 days.
- Scotland: File via Revenue Scotland LBTT within 30 days.
- Wales: File via WRA Portal within 30 days.
Late filing or underpayment may incur interest and penalties.
FAQs
What if I buy through a limited company?
In England/NI, higher SDLT rates apply (flat 17% for properties ≥ £500,000).
In Scotland/Wales, standard bands are used for corporate purchases.
Do I pay if I'm transferring property within my business?
Possibly exempt under specific group reliefs – professional advice recommended. Group relief rules vary by jurisdiction and require specific corporate structures.
What if the property is part residential, part commercial?
Treated as mixed-use, and taxed under non-residential rates in all jurisdictions. This can result in lower tax liability compared to purely residential properties.
- HMRC SDLT Guidance – Official guidance for England and Northern Ireland
- Revenue Scotland LBTT – Official guidance for Scotland
- Welsh Revenue Authority LTT – Official guidance for Wales
Stay Updated
Subscribe to our weekly briefings for curated property news and insights