Stamp Duty Land Tax (SDLT)

Definition

Stamp Duty Land Tax (SDLT) applies to property purchases in England and Northern Ireland; Scotland uses Land and Buildings Transaction Tax (LBTT), and Wales uses Land Transaction Tax (LTT). Under 2026/27 residential rates, standard SDLT starts at 0% up to £125,000 and 2% on the next £125,000. Eligible first-time buyers may receive relief up to £500,000. Additional-property rules differ: England and Northern Ireland generally add five percentage points to residential rates, qualifying Scottish purchases can incur an 8% Additional Dwelling Supplement, and Wales uses higher residential rate bands. Each system has separate eligibility and effective-date rules.

Why it matters

• It is a significant upfront cost when buying a home — often £5,000–£15,000 on an average property.
• Relief and additional-property eligibility differs between England and Northern Ireland, Scotland, and Wales.

Common use cases

• Budgeting for a home purchase
• Comparing first-time buyer benefits
• Buy-to-let investment planning

See also