Model UK SDLT before you exchange.

The 5% additional rate (raised from 3% on 31 October 2024) applies to every band of SDLT when you buy a second residential property, a buy-to-let, or a property through a limited company, on purchases of £40,000 or more. It applies on top of standard rates. For example, a £200,000 BTL pays 5% on the first £125,000 (£6,250) and 7% on the £125,000-£200,000 portion (£5,250), £11,500 in total. There is no exemption for a first BTL investment by an individual who already owns their home.

Buyers who have not been UK-resident for at least 183 days in the 12 months before completion pay an additional 2% on every band, on top of standard rates and the 5% second-home surcharge if applicable. The surcharge applies to individuals, companies, and trusts. A non-resident company purchase therefore pays 7% extra (5% + 2%) above standard rates.

Yes. If you become UK-resident (183 days in any continuous 365-day period that begins within 12 months of completion), you can apply to HMRC for a refund of the 2% non-resident surcharge. The refund must be claimed within 2 years of completion, or 12 months of becoming resident, whichever is later. Submit form SDLT16 with proof of residency.

Yes. Limited-company purchases pay the 5% second-home surcharge on purchases of £40,000 or more, even on a first acquisition. Companies above £500,000 acquiring a residential dwelling that is not let to an unconnected tenant may also fall under the 17% flat-rate ATED-related SDLT, with reliefs available for genuine BTL businesses. Most SPV BTL purchases qualify for the 5% surcharge route, not 17%.

MDR was abolished from 1 June 2024. Previously it allowed buyers acquiring 2 or more dwellings in a single transaction to calculate SDLT on the average price per dwelling, often reducing the bill significantly. Post-abolition, only purchases of 6 or more dwellings or mixed-use property continue to qualify for non-residential SDLT rates, which can be more favorable than residential plus surcharge.

SDLT is due within 14 days of completion (the date you legally take ownership), not exchange. Your solicitor files the SDLT return and pays HMRC on your behalf, typically requesting the SDLT amount alongside the completion balance 5-7 days before completion. Late filing triggers automatic penalties of £100 plus interest.

First-time buyers pay no SDLT on the first £300,000 of a property valued up to £500,000, and 5% on the £300,001-£500,000 band. Above £500,000 the relief is lost entirely and standard rates apply from £0. These thresholds reverted on 1 April 2025. The buyer must be a genuine first-time owner anywhere in the world: any prior worldwide property ownership, including inherited shares, disqualifies the relief.

No. Properties priced below £40,000 are exempt from SDLT entirely, including the 5% surcharge. This exemption is widely used for sub-£40k freehold ground rents, lock-up garages, and very low-value commercial-converted residential. It does not apply to the first £40,000 of a higher-value property.