SDLT (Stamp Duty Land Tax)

Stamp Duty Land Tax (SDLT) is a tax on property purchases in England and Northern Ireland. In Scotland, Land and Buildings Transaction Tax (LBTT) applies. In Wales, Land Transaction Tax (LTT) applies. All have different rate structures.

For additional residential properties (any property that is not your only home), a 5% surcharge is added to each SDLT band from October 2024. This applies whether you are buying as an individual or through a limited company.

SDLT bands for additional residential property (England, 2026): - Up to £125,000: 5% - £125,001-£250,000: 7% - £250,001-£925,000: 10% - £925,001-£1,500,000: 15% - Over £1,500,000: 17%

SDLT is calculated on a banded basis (like income tax) - each portion of the price is taxed at the rate for that band, not the whole price at the top band's rate.

SDLT must be paid within 14 days of completion. Your solicitor handles the submission and payment on your behalf and will deduct the SDLT from your completion funds.

SDLT is a sunk cost - it is not reclaimable as a running expense against income tax, though it is added to the cost base for CGT purposes.