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Stamp Duty Land Tax

Fri 11 Nov 2022

Stamp Duty Land Tax


Residential property rates

You usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price when you buy residential property, for example a house or flat.

SDLT only applies to properties over £250,000.

The amount you pay depends on:

Use the SDLT calculator to work out how much tax you’ll pay.

There were different thresholds and rates for residential properties before 23 September 2022.

Rates for a single property

You pay stamp duty at these rates if, after buying the property, it is the only residential property you own. You usually pay 3% on top of these rates if you own another residential property.

Property or lease premium or transfer value SDLT rate
Up to £250,000 Zero
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%


In October 2022 you buy a house for £295,000. The SDLT you owe will be calculated as follows:

  • 0% on the first £250,000 = £0
  • 5% on the final £45,000 = £2,250
  • total SDLT = £2,250

Use the SDLT calculator to work out how much tax you’ll pay.

If you’re buying your first home

You can claim a discount (relief) if the property you buy is your first home. This means you’ll pay:

  • no SDLT up to £425,000
  • 5% SDLT on the portion from £425,001 to £625,000

You’re eligible if you and anyone else you’re buying with are first-time buyers.

If the price is over £625,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before.


You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:

  • 0% on the first £425,000 = £0

  • 5% on the remaining £75,000 = £3,750

  • total SDLT = £3,750

New leasehold sales and transfers

When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the ‘lease premium’) using the rates above.

If the total rent over the life of the lease (known as the ‘net present value’) is more than the SDLT threshold (currently £250,000), you’ll pay SDLT at 1% on the portion over £250,000.

This does not apply to existing (‘assigned’) leases.

You can work out how much SDLT you’ll pay for your residential lease using HMRC’s:

Higher rates for additional properties

You’ll usually have to pay 3% on top of SDLT rates if buying a new residential property means you’ll own more than one.

Use the SDLT calculator or check the higher rates to work out how much tax you’ll pay.

If you’re replacing your main residence

You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.

If you have not sold your main residence on the day you complete your new purchase you’ll have to pay higher rates. This is because you own 2 properties.

You can apply for a refund if you sell your previous main home within 36 months.

If it takes longer than 36 months to sell your previous main home

You may still be able to get a refund of the extra 3% SDLT if all of the following apply:

  • you purchased your new home on or after 1 January 2017
  • exceptional circumstances stopped you from selling your old home, for example government restrictions because of coronavirus (COVID-19) or a public authority blocking the sale
  • you have now sold your old home

To claim a refund, write to HMRC and explain why the sale took longer than 36 months.


  • your details
  • details of the main buyer - if different to your own
  • details of the exceptional circumstances that prevented the sale of your property
  • details of the property where higher rate SDLT was paid - including the address, date of purchase and SDLT unique transaction reference number
  • details of the previous main residence - including the address, date of sale and SDLT unique transaction reference number
  • the amount of higher rate SDLT paid
  • the amount of tax you’re asking for a repayment of
  • a bank account and sort code for the person receiving the payment

Rates if you’re not a UK resident

If you’re not present in the UK for at least 183 days (6 months) during the 12 months before your purchase you are ‘not a UK resident’ for the purposes of SDLT.

You’ll usually pay a 2% surcharge if you’re buying a residential property in England or Northern Ireland.

You may not have to pay a surcharge on certain properties, transactions or if you’re a particular type of buyer. Check the rules on who has to pay the surcharge, when you do not have to pay, and if you can claim relief.

If you have to pay the surcharge, you’ll also have to pay any other rates of SDLT that apply, for example:

  • if you already own a property and you’re buying an additional property
  • if you’re a first-time buyer

Use the SDLT calculator to work out how much tax you’ll pay.

Information Source -

"We were incredibly impressed with the service from Anker and Partners when selling our house through them. From start to finish, they were very efficient and helpful. They were excellent at making sure things were moving forward. Anker were always willing to talk on the phone and were prompt in replying to emails. Marie and Kim worked hard to make sure the sale went through; without them, I'm not sure it would have happened! I can honestly say that before selling our house I was sceptical about estate agents just wanting the money, but Anker have changed my mind on this. They did a lot to ensure we sold our house in a timely manner. The staff supported us so well throughout the process. Thank you Anker!"
Keith and Kate Hobbs - Vendors