Residential rates from 1 April 2025
| Portion of the price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
Example: on a £295,000 home you pay 0% on the first £125,000, 2% on the next £125,000 (£2,500) and 5% on the remaining £45,000 (£2,250) — a total of £4,750.
First-time buyer relief
First-time buyer relief guide →
| Portion of the price | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
Every buyer must be a first-time buyer who will live in the property as their main residence. If the price is over £500,000, no relief is available and standard rates apply to the whole price. A £500,000 purchase costs £10,000 with the relief; at £500,001 the tax is £15,000.
Higher rates for additional dwellings
Second homes and the higher rates — full guide →
If a buyer will own more than one dwelling at the end of the day of completion, 5 percentage points are added to every band, including the nil-rate band (3 points before 31 October 2024). They don't apply to purchases under £40,000.
| Portion of the price | Standard | With higher rates |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5 million | 10% | 15% |
| Above £1.5 million | 12% | 17% |
Replacing a main residence? The higher rates don't apply if the previous main residence has already been sold. If it hasn't sold by completion, they are payable — but can be reclaimed if it sells within 36 months.
Non-resident buyers
Non-resident surcharge guide →
Buyers not present in the UK for at least 183 days in the 12 months before the purchase pay an extra 2% on residential property, on top of any other rates. With the higher rates, the top slice reaches 19%.
Companies buying dwellings
SDLT for companies — full guide →
Companies and other non-natural persons pay the higher rates for additional dwellings. On a dwelling costing over £500,000, a flat 17% applies to the whole price (15% before 31 October 2024), unless a relief applies — for example, a property rental business or property developer.
Non-residential and mixed-use property
| Portion of the price | Rate |
|---|---|
| Up to £150,000 | 0% |
| £150,001 to £250,000 | 2% |
| Above £250,000 | 5% |
The non-resident surcharge and higher rates don't apply. Example: a £275,000 commercial freehold costs £3,250.
New leases
On a new lease, tax is charged on the premium (at the rates above) plus the net present value (NPV) of the rent, discounted at 3.5% a year.
| NPV of rent — non-residential | Rate |
|---|---|
| £0 to £150,000 | 0% |
| £150,001 to £5 million | 1% |
| Above £5 million | 2% |
For residential leases, 1% is charged on NPV above £125,000. An assignment of an existing lease is taxed on the price paid only.
Recent changes
| Date | Change |
|---|---|
| 1 April 2025 | Residential nil band back to £125,000; first-time buyer relief to £300,000 with a £500,000 cap |
| 31 October 2024 | Higher rates for additional dwellings up from 3% to 5%; corporate flat rate from 15% to 17% |
| 1 June 2024 | Multiple dwellings relief abolished (with transitional rules) |
| 23 September 2022 | Nil band raised to £250,000; first-time buyer relief to £425,000 with a £625,000 cap |
| 1 April 2021 | 2% non-resident surcharge introduced |
Rates are for guidance and summarise HMRC's published rules. Reliefs and special cases can change the tax due.