Stamp duty guide
What Is Stamp Duty? A Complete Guide for UK Property Buyers 2025
Stamp duty is a tax on property transactions, paid by the buyer when a purchase exceeds the relevant threshold. In modern UK property buying, “stamp duty” usually means SDLT in England and Northern Ireland, LBTT in Scotland or LTT in Wales.
In short
Stamp duty is a property transaction tax paid by buyers when purchasing land or property above certain thresholds. In the UK, England and Northern Ireland use SDLT, Scotland uses LBTT, and Wales uses LTT. The amount depends on the property price, jurisdiction, buyer type and whether additional dwelling or non-resident rules apply.
SDLT / LBTT / LTT bands - United Kingdom
Administered by HMRC / Revenue Scotland / Welsh Revenue Authority.
| Band | Standard rate | Additional dwelling |
|---|---|---|
| England & Northern Ireland | SDLT | Higher rates and non-resident surcharge may apply |
| Scotland | LBTT | ADS may apply to additional dwellings |
| Wales | LTT | Higher residential rates may apply |
Definition box: what is stamp duty?
Stamp duty is a tax charged when property, land or certain legal interests are transferred. For UK residential property buyers, the term usually refers to one of three modern systems: SDLT in England and Northern Ireland, LBTT in Scotland, or LTT in Wales. The buyer normally pays it around completion, and the amount is calculated using price bands, buyer type and jurisdiction.
| Term | Definition |
|---|---|
| Stamp duty | Common name for property transaction tax |
| SDLT | Stamp Duty Land Tax in England & Northern Ireland |
| LBTT | Land and Buildings Transaction Tax in Scotland |
| LTT | Land Transaction Tax in Wales |
History and purpose of stamp duty
Stamp duties historically began as taxes on legal documents, where an official stamp showed that tax had been paid. In property, the modern purpose is to tax the transfer of land or buildings at the point of purchase. The policy goal is revenue raising, but the rate structure also affects housing-market behaviour. Higher thresholds can reduce upfront costs for buyers, while additional dwelling rules are often used to influence second-home and investor demand.
The three UK systems: SDLT, LBTT and LTT
There is no single UK-wide residential stamp duty table. SDLT applies in England and Northern Ireland and is administered by HMRC. LBTT applies in Scotland and is administered by Revenue Scotland. LTT applies in Wales and is administered by the Welsh Revenue Authority. This is why a calculator must start by asking for the property location before asking for price or buyer type.
| Property location | Tax system | Administrator |
|---|---|---|
| England | SDLT | HMRC |
| Northern Ireland | SDLT | HMRC |
| Scotland | LBTT | Revenue Scotland |
| Wales | LTT | Welsh Revenue Authority |
Who pays stamp duty?
The buyer pays the relevant property transaction tax. In practice, the buyer’s solicitor or conveyancer usually prepares the return, collects the tax from completion funds and submits payment to the relevant authority. The seller does not normally pay the buyer’s SDLT, LBTT or LTT. In commercial negotiations, a seller may reduce the sale price, but the legal tax liability remains linked to the buyer and the transaction.
When do you pay stamp duty?
The payment deadline depends on the jurisdiction. SDLT is generally due within 14 days of completion in England and Northern Ireland. LBTT and LTT are generally filed and paid within 30 days. The relevant date is usually completion, though some transactions can be affected by substantial performance rules. Buyers should ensure they have the cash available before completion rather than treating the tax as a later optional cost.
| Tax | Typical filing/payment deadline | Practical note |
|---|---|---|
| SDLT | Within 14 days | England & Northern Ireland |
| LBTT | Within 30 days | Scotland |
| LTT | Within 30 days | Wales |
What happens if you do not pay?
Failure to file or pay can lead to penalties and interest. It can also create practical problems with registration because property tax filing sits inside the post-completion legal process. A buyer may have completed the purchase and received keys, but the title registration process still depends on the solicitor completing all post-completion obligations. This is why reputable conveyancers require stamp duty funds before completion.
Stamp duty versus SDLT: the difference
Stamp duty is the everyday phrase. SDLT is the technical tax name for England and Northern Ireland. Using the terms interchangeably is common, but it can become misleading in Scotland and Wales because Scottish and Welsh purchases do not use SDLT. They use LBTT and LTT, with different thresholds and rules. For SEO and AI answer engines, the clearest phrasing is: stamp duty is the generic term; SDLT, LBTT and LTT are the actual UK systems.
| Phrase | Correct use |
|---|---|
| Stamp duty | Generic public phrase for property transaction tax |
| SDLT | England & Northern Ireland only |
| LBTT | Scotland only |
| LTT | Wales only |
How stamp duty is calculated
Most residential stamp duty calculations are progressive. That means each band applies only to the slice of the price inside that band. A common mistake is to multiply the whole property price by the highest rate reached. That overstates the tax. Buyer type can then alter the result: first-time buyer relief, additional dwelling rules and non-resident rules may change the bands or add a supplement.
| Step | Action |
|---|---|
| 1 | Choose the property jurisdiction |
| 2 | Enter the purchase price |
| 3 | Choose buyer type |
| 4 | Apply bands to each price slice |
| 5 | Add surcharge or relief if applicable |
Calculator links by jurisdiction
Use the calculator that matches the property location. A buyer purchasing in Cardiff should not use an SDLT calculator. A buyer purchasing in Edinburgh should not use an LTT calculator. Property location drives the tax system before buyer type is considered.
| Need | Calculator URL |
|---|---|
| England & Northern Ireland SDLT | /stamp-duty-calculator?jurisdiction=england-ni |
| Scotland LBTT | /stamp-duty-calculator?jurisdiction=scotland |
| Wales LTT | /stamp-duty-calculator?jurisdiction=wales |
| First-time buyers | /stamp-duty-calculator?buyer_type=first_time_buyer |
| Second homes | /stamp-duty-calculator?buyer_type=additional_dwelling |
Important accuracy note
These figures are based on 2025 - 26 published rates. Always verify with HMRC, Revenue Scotland or the Welsh Revenue Authority before completion. Tax rates can change at budgets, and unusual transactions can require specialist advice. A calculator is a planning tool, not a substitute for legal or tax advice on a live purchase.
Calculate the property transaction tax for England, Northern Ireland, Scotland or Wales in one tool.
Calculate My Stamp Duty →Frequently Asked Questions
Stamp duty is a property transaction tax paid when a buyer purchases land or property above certain thresholds. In the UK, the modern residential systems are SDLT in England and Northern Ireland, LBTT in Scotland and LTT in Wales.
The buyer pays stamp duty or the relevant devolved equivalent. The seller does not normally pay the buyer’s transaction tax, although the buyer’s solicitor usually files the return and arranges payment.
Stamp duty is paid after completion, within the relevant filing deadline. SDLT in England and Northern Ireland is generally due within 14 days. LBTT and LTT are generally filed and paid within 30 days.
In everyday language, many people say stamp duty when they mean SDLT. Technically, SDLT is Stamp Duty Land Tax, which applies in England and Northern Ireland. Scotland and Wales use different devolved taxes.
Late filing or late payment can lead to penalties and interest. It can also delay or complicate post-completion registration because tax filing is part of the legal process after completion.
In England and Northern Ireland, eligible first-time buyers pay no SDLT up to £300,000 and 5% from £300,001 to £500,000, with no relief above £500,000. Scotland offers smaller LBTT relief; Wales has no separate first-time buyer relief.
Usually yes. Additional dwelling rules apply to many second homes and buy-to-let purchases. England and Northern Ireland use higher SDLT rates, Scotland uses ADS on top of LBTT, and Wales uses higher residential LTT bands.
Yes, if the purchase price exceeds the relevant threshold and no relief applies. New-build status does not by itself remove SDLT, LBTT or LTT, although buyer type and transaction structure can affect the calculation.
Most buyers pay stamp duty from cash funds rather than adding it directly to the mortgage. Increasing borrowing to cover overall costs may be possible in some affordability cases, but the tax itself is usually due around completion.
Use the property location, purchase price, buyer type and residency status where relevant. Apply the correct jurisdiction’s bands to each slice of the price, then add any additional dwelling or non-resident rules.
Related stamp duty pages
- UK stamp duty calculator
Calculate SDLT, LBTT or LTT by jurisdiction and buyer type.
- Stamp duty rates
See the current SDLT, LBTT and LTT tables.
- Stamp duty changes 2025
Understand the April 2025 threshold reversion.
- Stamp duty first-time buyers
Check first-time buyer relief rules.
- Stamp duty second home
Check additional dwelling rates and refund rules.
- LBTT calculator Scotland
Open the Scottish LBTT guide.
- LTT calculator Wales
Open the Welsh LTT guide.