Stamp Duty Land Tax (SDLT) is a tax on buying property and land in England (Wales has its own separate tax, Land Transaction Tax (LTT); Scotland has Land and Buildings Transaction Tax (LBTT); this guide covers England). A frequent question is who pays it and how much. Here is a plain-English guide.
Who pays SDLT?
The buyer pays SDLT, not the seller. On a purchase, it is the purchaser's responsibility to file an SDLT return and pay the tax to HMRC, normally within 14 days of completion. (On the grant of a lease, the tenant pays any SDLT due.) In practice your solicitor/conveyancer usually handles the return and payment on your behalf, but the legal liability is the buyer's.
A return may be required even if no tax is due (for "notifiable" transactions).
How is the amount worked out?
SDLT is charged on a "slice" (banded) basis: different rates apply to the portion of the price that falls within each band, not the whole price at one rate.
Non-residential / commercial freehold (the focus here)
For purchases of non-residential or mixed-use freehold property, the price is taxed in slices, broadly:
- 0% on the portion up to £150,000;
- 2% on the portion from £150,001 to £250,000; and
- 5% on the portion above £250,000.
So on a £400,000 commercial purchase, you'd pay 0% on the first £150,000, 2% on the next £100,000 (£2,000), and 5% on the final £150,000 (£7,500), £9,500 in total. (For leases, SDLT is also charged on the net present value of the rent as well as any premium.)
Residential property, different rates and surcharges
Residential purchases use different bands and rates, and can attract:
- a higher-rate surcharge for additional properties (second homes / buy-to-let);
- first-time buyer relief; and
- a surcharge for non-UK resident buyers.
Important: SDLT rates, bands and reliefs are changed from time to time in Budgets. Always check the current rates (and which regime applies, residential, non-residential or mixed-use) at the date of your transaction.
Scotland and Wales
- Scotland: Land and Buildings Transaction Tax (LBTT).
- Wales: Land Transaction Tax (LTT).
These have their own rates and bands, so SDLT applies only to England.
Practical tips
- Budget for SDLT early, it is a significant upfront cost.
- Confirm whether the property is residential, non-residential or mixed-use (it changes the rates).
- Check for any available reliefs (e.g. first-time buyer relief) and any surcharges. Note that Multiple Dwellings Relief was abolished for most transactions with effect from 1 June 2024, subject to limited transitional provisions.
- Your conveyancer files and pays, but you are responsible, file and pay within 14 days of completion.
Key takeaways
- The buyer pays SDLT (the tenant on a lease grant), filing and paying within 14 days of completion (England only; Wales has LTT, Scotland has LBTT).
- SDLT is charged on a slice/banded basis. For non-residential freehold: 0% to £150k, 2% £150k–£250k, 5% above £250k (plus SDLT on lease rent NPV).
- Residential has different bands and possible surcharges (additional property, non-resident) and reliefs (first-time buyers).
- Rates and thresholds change, always check the current figures; Scotland (LBTT) and Wales (LTT) have their own taxes.
Sources
- Finance Act 2003 (Stamp Duty Land Tax); HMRC SDLT rates, bands and reliefs (subject to change in Budgets); 14-day filing/payment deadline
- Land and Buildings Transaction Tax (Scotland); Land Transaction Tax (Wales)
- SDLT on leases (premium and net present value of rent)
--- This article is general information about the law of England as at 2026, not legal or tax advice. SDLT rates change, check the current position and consult a qualified solicitor or tax adviser.