Professional & Financial Services Stamp Taxes

Understand property transaction taxes

Overview of SDLT, LBTT, and LTT -- the three separate property transaction taxes across the UK. Covers rates, thresholds, reliefs, filing processes, and penalties for England/Northern Ireland, Scotland, and Wales.

UK-wide
Guide summary

When you buy property in the UK, you must pay tax based on where the property is located. Check if you qualify for first-time buyer relief or if higher rates apply for second homes. File your tax return within 14 days (England/NI) or 30 days (Scotland/Wales).

  • Pay SDLT in England/Northern Ireland to HMRC
  • Pay LBTT in Scotland to Revenue Scotland
  • Pay LTT in Wales to Welsh Revenue Authority
  • Nil rate band: £125k England/NI, £145k Scotland, £225k Wales
  • First-time buyer relief: England/NI up to £500k, Scotland up to £175k
  • Additional property surcharge: 5-17% depending on location
  • File within 14 days (England/NI) or 30 days (Scotland/Wales)
  • Commercial property has lower rates than residential
  • Higher rates for non-UK residents in England/NI (2%)
  • Check current rates as they change periodically
On this page
UK-wide

Related guides in Tax & Finance

Land Transaction Tax in Wales

How Land Transaction Tax (LTT) works in Wales, including current rates for residential, non-residential, and additional property purchases. …

When you buy property or land in the UK, you pay a transaction tax calculated on the purchase price. The tax you owe depends entirely on where the property is located, not where you live or where your business is registered:

  • England and Northern Ireland: Stamp Duty Land Tax (SDLT) -- administered by HMRC
  • Scotland: Land and Buildings Transaction Tax (LBTT) -- administered by Revenue Scotland
  • Wales: Land Transaction Tax (LTT) -- administered by the Welsh Revenue Authority (WRA)

Property transaction taxes were devolved to Scotland from April 2015 and to Wales from April 2018. Each nation now sets its own rates, bands, reliefs, and filing rules independently. Northern Ireland continues to follow SDLT rules alongside England.

All three taxes work on a progressive (slice) basis: you pay each rate only on the portion of the purchase price that falls within that band, not on the entire amount. This means the effective tax rate is always lower than the headline rate for the top band.

Nil rate band (residential, main home)
England/NI: £125,000 | Scotland: £145,000 | Wales: £225,000
First-time buyer relief
England/NI: yes, up to £500,000 (saves up to £6,250) | Scotland: yes, up to £175,000 (saves £600) | Wales: none
Additional property surcharge
England/NI: 5% on all bands | Scotland: 8% ADS on full price | Wales: separate higher rates table (5%--17%)
Non-resident surcharge
England/NI: additional 2% | Scotland: none | Wales: none
Filing deadline
England/NI: 14 days | Scotland: 30 days | Wales: 30 days
Administering body
HMRC | Revenue Scotland | Welsh Revenue Authority
Effective from
SDLT: Finance Act 2003 | LBTT: April 2015 | LTT: April 2018

First-time buyers

First-time buyer relief is available in England/Northern Ireland and Scotland, but not in Wales.

In England and Northern Ireland, first-time buyers pay no SDLT on the first £300,000 of a property valued up to £500,000, saving up to £6,250. If the property costs more than £500,000, the relief is lost entirely and standard rates apply.

In Scotland, first-time buyers benefit from a higher nil rate band of £175,000 (instead of the standard £145,000), saving up to £600. There is no upper price cap for this relief.

Wales does not offer first-time buyer relief, but its higher nil rate band of £225,000 means that around 60% of residential transactions in Wales fall below the threshold entirely.

Second homes, buy-to-let, and company purchases

All three nations levy significantly higher rates when buying additional residential properties. These apply to second homes, buy-to-let investments, holiday lets, and all residential purchases by companies.

  • England/NI: A flat 5% surcharge is added on top of all standard SDLT bands. Non-UK residents pay an additional 2% on top of that (7% total surcharge). You can reclaim the surcharge if you sell your previous main home within 36 months.
  • Scotland: The Additional Dwelling Supplement (ADS) of 8% applies on the full purchase price (not progressively). This was increased from 6% in December 2024. The ADS can be reclaimed if the previous main residence is sold within 18 months.
  • Wales: A separate higher rates table applies, with rates from 5% on the first £180,000 rising to 17% on amounts over £1,500,000. These higher rates were increased by 1 percentage point from 11 December 2024.

Commercial and non-residential property

All three taxes have separate, lower rate tables for non-residential property (shops, offices, warehouses, agricultural land, forests). If a property includes both residential and commercial elements (such as a flat above a shop), the non-residential rates typically apply to the entire purchase.

  • England/NI (SDLT): 0% up to £150,000, 2% on £150,001--£250,000, 5% over £250,000
  • Scotland (LBTT): 0% up to £150,000, 1% on £150,001--£250,000, 5% over £250,000
  • Wales (LTT): 0% up to £225,000, 1% on £225,001--£250,000, 5% on £250,001--£1,000,000, 6% over £1,000,000

Commercial lease premiums and rental obligations may also attract property transaction tax. Rent is taxed based on the Net Present Value (NPV) of rent payable over the lease term. Seek professional advice for complex lease transactions.

  1. 1

    1. Identify which tax applies

    Check where the property is located. England and Northern Ireland pay SDLT to HMRC. Scotland pays LBTT to Revenue Scotland. Wales pays LTT to the Welsh Revenue Authority. The property's location determines the tax -- not your home address or business registration.

  2. 2

    2. Check if any reliefs apply

    Determine whether you qualify for first-time buyer relief (England/NI or Scotland), whether multiple dwellings relief applies, or whether any exemptions cover your transaction (charity purchases, transfers on divorce, gifts without mortgage).

  3. 3

    3. Calculate the tax due

    Use the official calculator for the relevant nation. Apply the progressive rates to each band. Add any surcharges for additional properties or non-resident status. Your solicitor or conveyancer will normally handle this calculation.

  4. 4

    4. File your return and pay

    SDLT must be filed and paid within 14 days of completion. LBTT and LTT must be filed and paid within 30 days. Your solicitor usually files on completion day. For SDLT, you need the SDLT5 certificate to register ownership at the Land Registry.

  5. 5

    5. Keep records

    Retain your purchase documents, the filed return, and proof of payment. You may need these if you later claim back a surcharge (for example, after selling a previous main residence) or if the tax authority opens an enquiry.

Penalty risk

Penalties for late filing or payment

Penalty:
<p>All three tax authorities impose penalties for late filing and late payment:</p> <ul> <li><strong>SDLT (England/NI):</strong> £100 fixed penalty if up to 3 months late, £200 if over 3 months late, and up to 100% of the tax due if over 12 months late. Late payment attracts a 5% surcharge after 30 days and a further 5% after 90 days, plus daily interest at base rate plus 4%.</li> <li><strong>LBTT (Scotland):</strong> £100 fixed penalty for late filing, with daily penalties of £10 per day (up to 90 days) if the return is more than 3 months late. Late payment penalties and interest also apply. Revenue Scotland may impose tax-geared penalties for deliberate non-compliance.</li> <li><strong>LTT (Wales):</strong> Fixed penalties for late filing, with further penalties if the return is over 12 months late. Late payment attracts daily interest. Penalties of up to 95% of the tax due may apply for deliberate non-compliance or failure to disclose relevant information.</li> </ul> <p>In all cases, you cannot register your ownership at the relevant Land Registry without proof that the tax return has been filed.</p>

Legal basis

Official calculators and guidance