SDLT (Stamp Duty Land Tax)
A tax paid to HMRC when purchasing property in England and Northern Ireland, with higher rates for additional properties and non-UK residents.
Stamp Duty Land Tax (SDLT) is a tiered tax paid on property purchases in England and Northern Ireland. Scotland has LBTT and Wales has LTT — similar taxes with different rate bands.
Current SDLT Rates (2025/26)
Standard residential rates:
| Property price band | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Additional Property Surcharge
If you already own a residential property (including BTL), you pay an additional 5% on top of the standard rates on the entire purchase price. This is the most significant upfront cost for BTL investors.
For a £250,000 BTL purchase, the surcharge alone adds £12,500 to your acquisition costs.
Non-UK Resident Surcharge
Non-UK residents pay a further 2% surcharge on top of all other rates.
Impact on Investment Returns
SDLT is a one-off cost that directly reduces your cash-on-cash return and total return on investment. It should always be included in your initial investment calculations, especially when comparing the total capital required to enter a deal.