Last updated: 14 October 2026
What’s the difference between Stamp Duty Land Tax and Land Transaction Tax?
Both are taxes on buying property or land, but they apply in different parts of the UK. Stamp Duty Land Tax (SDLT) applies in England and Northern Ireland and is collected by HMRC. Land Transaction Tax (LTT) has replaced SDLT in Wales since 1 April 2018 and is collected by the Welsh Revenue Authority. Scotland has its own Land and Buildings Transaction Tax (LBTT). The rates, bands, reliefs and surcharges differ, so the location of the property decides which tax you pay.
SDLT main residential rates (England and Northern Ireland)
| Portion of price | Rate |
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
LTT main residential rates (Wales)
| Portion of price | Rate |
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.5% |
| £750,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
The Welsh bands haven’t changed since October 2022. The English bands have applied since 1 April 2025, when the temporary higher nil-rate band ended.
Additional properties
| Point | SDLT | LTT |
| Surcharge or rates | Main rates plus 5% | Separate higher rates, from 5% up to 17% |
| Refund if old home sold | Within 3 years | Within 3 years |
| Minimum price for surcharge | £40,000 | £40,000 |
First-time buyers
England and Northern Ireland have first-time buyer relief: 0% on the first £300,000, and 5% on the portion from £300,001 to £500,000, for homes costing up to £500,000. Wales has no first-time buyer relief, but its higher 0% band of £225,000 applies to all main-residence buyers.
Example
A buyer pays £300,000 for a first home.
- In England, with first-time buyer relief: £0.
- In England, as a home mover: 2% on £125,000 (£2,500) plus 5% on £50,000 (£2,500), a total of £5,000.
- In Wales: 6% on £75,000, a total of £4,500.
Higher rates in Wales
Welsh higher rates for additional properties were raised by 1 percentage point from 11 December 2024. They run from 5% on the first £180,000 to 17% on the portion over £1.5 million.
Filing and paying
SDLT returns must be filed and the tax paid within 14 days of completion. LTT has a 30-day deadline. Your solicitor or conveyancer usually does this for you.
Buying through a company
Companies buying residential property pay the surcharge in both systems. In England, a 17% flat rate can apply to homes over £500,000 bought by companies, unless a relief such as for property rental businesses applies.
Which tax applies to you
It depends only on where the land is, not where you live. A Cardiff resident buying in Bristol pays SDLT. A London investor buying in Swansea pays LTT and files with the Welsh Revenue Authority. Getting it wrong can mean penalties and interest, so check the postcode and the boundary before exchange.
Frequently asked questions
What if the property straddles the border?
The price is apportioned, and each tax applies to its part.
Do both taxes have multiple dwellings relief?
LTT has it; SDLT multiple dwellings relief was abolished from June 2024.
Can I reclaim LTT if I sell my old home?
Yes, within 3 years.
Which tax applies to non-residential property?
Each has its own non-residential rates.
Related: SDLT rates, SDLT on second homes and buying a house in Scotland.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with property purchase taxes. See our landlord accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
