What is SDLT? A Complete Guide for Property Buyers

If you're purchasing a property in England or Northern Ireland, you're likely to come across Stamp Duty Land Tax (SDLT). While it’s a standard part of the property-buying process, many people don’t fully understand how it works - or realise they may be paying more than they should.

At SCA Tax, we specialise in helping property buyers identify and recover overpaid SDLT. This guide will walk you through the fundamentals of SDLT, including how it’s calculated, who needs to pay it, and how you can check if you're eligible for a refund.

What Is SDLT?

Stamp Duty Land Tax is a government tax charged on the purchase of property or land in England and Northern Ireland. The amount payable depends on several factors, including:

The price of the property
Whether it’s residential or commercial
If it’s your main residence or an additional property
Whether you’re a first-time buyer

Scotland and Wales operate different systems; LBTT in Scotland and LTT in Wales.

When Do You Pay SDLT?

You are required to pay SDLT when you:

Purchase a freehold or leasehold property
Buy through a shared ownership scheme
Acquire land or property in exchange for payment, including taking on a mortgage

SDLT must be paid within 14 days of completion, and in most cases, your solicitor or conveyancer will file the return and make the payment on your behalf.

SDLT Rates in 2025

As of April 2025, the following SDLT bands apply for residential property purchases:

| Purchase Price Band | SDLT 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%
| Over £1.5 million | 12%

First-Time Buyer Relief

First-time buyers purchasing properties worth £500,000 or less can benefit from the following reduced rates:

0% on the first £300,000
5% on the portion from £300,001 to £500,000

If the purchase price exceeds £500,000, the standard rates apply and the relief is not available.

Second Homes and Additional Properties

If you are buying an additional property, such as a second home or a buy-to-let, you’ll need to pay a 3% surcharge on top of the standard SDLT rates.

Commercial and Mixed-Use Properties

Different rates apply to commercial or mixed-use properties:

| Price Band | SDLT Rate | Up to £150,000 | 0%
| £150,001 to £250,000 | 2%
| Over £250,000 | 5%

Mixed-use properties, such as a flat above a commercial unit, are sometimes mistakenly classified as fully residential, which can lead to unnecessarily high SDLT bills.

Common Reasons for Overpaid SDLT

SDLT is complex, and unfortunately, errors are not uncommon. Some of the most frequent reasons people overpay include:

Incorrect classification of the property (e.g. treating a mixed-use property as residential)
Failure to apply relevant reliefs (such as Multiple Dwellings Relief)
Lack of awareness about uninhabitable status exemptions
Miscalculations by legal professionals or conveyancers

How SCA Tax Can Help You

At SCA Tax, we specialise in reviewing historical property transactions to identify cases of overpaid SDLT. If we discover you’ve paid more than necessary, we’ll handle the refund process with HMRC on your behalf.

Why Choose Us?

We operate on a no-win, no-fee basis. If we don’t secure a refund, there’s no cost to you.
Our experienced team includes tax specialists and legal professionals.
We’ve helped recover millions of pounds for UK property buyers.

If you’ve purchased a property in the last four years, you could still be eligible for a refund.

How to Check If You're Eligible

It’s quick and easy to check. Simply complete the short assessment form at here, and one of our SDLT specialists will review your case and get in touch.

SDLT is a key part of buying property, but it’s also an area where many buyers unknowingly pay too much. With the 2025 rates now in effect, it’s more important than ever to ensure you're being charged correctly.

If you suspect you’ve overpaid, or just want peace of mind, SCA Tax is here to help.

Check your eligibility here.