Rates in England and Northern Ireland from April 2025
For an ordinary residential purchase not subject to relief or supplements, SDLT is charged in slices: 0% on the first £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% on the amount over £1.5 million.
Purchases of additional dwellings typically attract a further 5 percentage points on each slice. A transaction subject to the non-UK resident surcharge may attract a further 2 percentage points. They can apply together, but the detailed tests, exceptions and reliefs must be checked.
Overseas purchasers: residence is a specific SDLT test
The SDLT non-residence rules are not the same as the general Income Tax statutory residence test. Broadly, the 183-day presence test looks at a qualifying continuous 365-day period within the relevant window. Special rules apply to couples, joint purchases and companies controlled by non-residents.
A qualifying purchaser may be able to reclaim the 2% surcharge after meeting the subsequent residence test. A property purchase should be assessed on its precise acquisition date and circumstances.
Transferring a share to a spouse or child
A genuine outright gift with no chargeable consideration does not ordinarily trigger SDLT. But if the recipient assumes responsibility for part of a mortgage, releases the transferor from debt, or pays money, that may be chargeable consideration even where the paperwork refers to a gift.
HMRC gives examples of transfers between spouses in which taking over mortgage debt produces an SDLT liability. Transfers arising under qualifying divorce or civil-partnership dissolution orders can be treated differently. The property valuation alone is not always the chargeable amount for an ordinary individual-to-individual transfer.
Putting an existing property into a limited company
A transfer to a company controlled by the owner is commonly assessed by reference to market value for SDLT, including where no money is actually paid. Individual owners also need to consider CGT on the disposal, existing finance and refinancing costs. A genuine property-business incorporation relief may be relevant in limited circumstances but should never be presumed.
Companies acquiring residential dwellings may face different SDLT provisions, including a special 17% flat rate for certain corporate acquisitions over £500,000, subject to specific reliefs and exemptions, and the broader higher-rates regime. Separate ATED reporting may also arise.
Deadlines and practical checks
SDLT returns and payment are normally due within 14 days of the transaction's effective date, with exceptions. The conveyancer should confirm the buyer's other-property position, residence, any connected transactions, consideration including debt, corporate status, reliefs and whether the property is genuinely residential or mixed use.
Do not use a generic online calculator for complex family transfers, trusts, company acquisitions or linked transactions without professional review.