What is stamp duty?
Stamp Duty Land Tax (SDLT) is a progressive tax paid when purchasing freehold, leasehold or shared ownership residential property in England and Northern Ireland. Separate taxes apply in Scotland (LBTT) and Wales (LTT).
When do I pay it?
Stamp duty must be paid to HMRC within 14 days of completion. Your solicitor or conveyancer will typically handle this on your behalf as part of the transaction.
Can I add stamp duty to my mortgage?
Some lenders will allow it, but it increases your loan size and the interest you pay over the mortgage term. It also affects your loan-to-value ratio. Most advisers recommend paying from savings where possible.
Does the BTL surcharge apply from the first pound?
Properties under £40,000 are exempt. Above that, the 5% surcharge applies to all bands from the first pound. It was increased from 3% to 5% in October 2024.
What if I'm replacing my main residence?
If you sell your previous main home before or on the same day as completing a new purchase, the additional property surcharge does not apply — even if you briefly owned two properties simultaneously.
Does this apply in Scotland or Wales?
No. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT). Both have different rates and thresholds. This calculator covers England and Northern Ireland only.
