SDLT on a residential purchase above the first-time buyers' relief limit
Amara Eze and Jonah Fisher, who have never owned a home anywhere, complete the purchase of a freehold house in Brighton, England, on 3 July 2026 for £520,000, to live in as their only residence. Assume the following SDLT rates and relief apply. Standard residential rates: 0% on the first £125,000; 2% on the portion from £125,001 to £250,000; 5% on the portion from £250,001 to £925,000; 10% on the portion from £925,001 to £1.5 million; 12% above £1.5 million. First-time buyers' relief: 0% up to £300,000 and 5% on the portion from £300,001 to £500,000, but the relief cannot be claimed if the price is over £500,000.
How much SDLT is payable?
Choose one answer to see the reasoning.
Worked answer
Correct answer B: £16,000
THE RULE TO REMEMBER
Residential SDLT is charged on a slice basis; first-time buyers' relief is unavailable where the price exceeds the stated cap, so standard rates apply to the whole price.
SDLT on a residential purchase above the first-time buyers' relief limit
Stamp Duty Land Tax on residential property is charged on a slice basis: each rate applies only to the portion of the price within its band. Amara and Jonah are first-time buyers, but the relief is not available where the price exceeds £500,000. At £520,000 they lose the relief entirely, and the whole price is taxed at the standard rates; the relief is not applied to the first £500,000 with standard rates on the excess. The calculation is: £125,000 at 0% = £0; £125,000 (from £125,001 to £250,000) at 2% = £2,500; £270,000 (from £250,001 to £520,000) at 5% = £13,500. Total SDLT is £16,000. The buyers' solicitor must deliver the SDLT return and pay this tax within 14 days after the effective date, which here is completion.
Why A is wrong: £11,000 wrongly applies first-time buyers' relief to the first £500,000 and charges 5% on the excess; the relief is lost entirely above £500,000.
Why C is wrong: £26,000 charges 5% on the whole price instead of applying each rate only to its slice.
Why D is wrong: £13,500 is only the tax on the 5% band and omits the £2,500 due on the 2% band.
Why E is wrong: £19,750 wrongly applies 5% to everything above £125,000, missing the 2% band from £125,001 to £250,000.
A little more practice done.
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