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What is Stamp Duty Land Tax (SDLT)?
Last verified 23 October 2026
Stamp Duty Land Tax is a tax paid by the buyer of property or land over a certain price in England and Northern Ireland. Scotland has Land and Buildings Transaction Tax instead, and Wales has Land Transaction Tax.
Why it matters to landlords
For a residential purchase the rates are 0% up to £125,000, 2% on the portion from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% above that. Each rate applies only to the part of the price in that band. First time buyers pay nothing up to £300,000 and 5% from £300,001 to £500,000, but get no relief above £500,000.
Buying a rental property usually triggers the higher rates for additional dwellings, which add 5% to each band if you will own more than one residential property. You must file an SDLT return and pay within 14 days of completion. Factor the tax into your yield sums before you offer.
Example
A home mover buying a £200,000 house pays 0% on £125,000 and 2% on £75,000, so £1,500. A landlord buying the same house as an additional property pays 5% on £125,000 and 7% on £75,000, so £11,500.
Related terms
- SDLT higher rates surcharge
- Land Transaction Tax (LTT)
- Land and Buildings Transaction Tax (LBTT)
- Buy-to-let mortgage
- Rental yield