What you pay, when you pay it, and how the bands, reliefs and surcharges interact on UK new-build purchases. Plain English, with worked examples and a quick calculator.
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Stamp Duty Land Tax (SDLT) is a tax paid by the buyer on residential property purchases in England and Northern Ireland. It is calculated in bands, applied to the portion of the price that falls within each band, and paid to HMRC within 14 days of completion through your solicitor.
Scotland uses a separate system called Land and Buildings Transaction Tax (LBTT). Wales uses Land Transaction Tax (LTT). The bands and rates differ in each jurisdiction; this page covers SDLT only.
The amount you pay depends on three things: the price you pay, whether you are a first-time buyer, and whether you already own another property. A 2% surcharge also applies if you are not a UK resident at the time of completion.
Indicative only. England and Northern Ireland. Always confirm with your solicitor or tax adviser before exchange.
These rates apply to the portion of the purchase price that falls within each band. They apply to your main residence and assume you are a UK resident replacing or acquiring a single home.
Rates change at fiscal events. Always verify with HMRC or your solicitor before committing to a transaction.
If you and any joint buyer are both buying your first ever home, no SDLT is due on the first £425,000. A 5% rate applies to the portion between £425,001 and £625,000. If the price exceeds £625,000, relief is lost entirely and standard rates apply.
If, on completion, you own another residential property anywhere in the world and you are not replacing your main residence, a 3% surcharge applies on top of the standard SDLT. This affects most second-home and buy-to-let purchases. There are specific reliefs for replacing a main residence within the relevant window.
If you have not been present in the UK for at least 183 days in the 12 months before completion, a further 2% applies. This stacks on top of the standard rates and the additional property surcharge where relevant. International investors should factor this in early.
Within 14 days of completion. Your solicitor submits the SDLT return and pays HMRC on your behalf, then bills you. SDLT cannot be financed; it must come from cash on completion alongside your deposit and legal fees.
Indicative figures using current bands and reliefs. Always confirm with your solicitor before exchange.
Full first-time buyer relief applies because the price is under £625,000.
Standard residential bands. No surcharge.
Surcharges stack on top of the standard SDLT calculation.
This page is a guide, not legal or tax advice. SDLT outcomes depend on personal circumstances, ownership history, residency status, and how the transaction is structured. Before you exchange, your solicitor will confirm the exact figure on your SDLT return. For complex cases (corporate buyers, mixed-use property, multiple dwellings relief), a qualified tax adviser is the right call.
We work with a panel of specialist solicitors who handle new-build conveyancing every day, and a tax network for non-resident and corporate buyers. Both introductions are free.
Disclaimer: SDLT rates, thresholds and reliefs change at fiscal events. The figures on this page are provided for guidance only and should not be relied on for a specific transaction. Always verify with HMRC or a qualified adviser before exchange.
