SDLT (Stamp Duty Land Tax)
Plain-English definition of SDLT (Stamp Duty Land Tax) — part of our property glossary.
Definition
Stamp Duty Land Tax is the UK tax on residential and commercial property purchases in England and Northern Ireland. It is calculated in slices (not a flat percentage) and is due on completion day in cash — it cannot be added to the mortgage.
Worked example
On a £400,000 home as a non-first-time buyer in England: 0% on the first £250,000, then 5% on the £150,000 above = £7,500 SDLT due on completion day. A first-time buyer at the same price pays £0 (within the £425,000 FTB threshold).
Why it matters
Property is the single largest financial transaction most households ever make, and small mistakes — a worse rate, a missed relief, the wrong structure — compound over 25–30 years. Fluent vocabulary is the difference between spotting a costly clause and signing it.
Common mistake
Assuming advertised rates apply to everyone. Loan-to-value bands, property type, and credit history all filter you into a narrower set of actual rates. Always price the deal for your specific LTV and property, not the headline teaser.
Calculators that use this concept
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See also
- LTV (Loan-to-Value) — LTV is the mortgage amount expressed as a percentage of the property value. A £180,000 mortgage on a £200,000 …
- Offset Mortgage — A mortgage linked to a savings account: interest is charged only on the mortgage balance minus the savings bal…
- First-Time Buyer (FTB) — In UK property, a first-time buyer is someone who has never owned a residential property anywhere in the world…
- Help to Buy ISA (closed) — A government scheme closed to new entries in November 2019. Existing accounts still earn the 25% bonus on savi…
- Lifetime ISA (LISA) — A Lifetime ISA lets 18–39-year-olds save up to £4,000/year and receive a 25% government bonus on top, up to ag…