New SDLT rates introduced on 23 September 2022

HM Revenue and Customs updated its guidance on Stamp Duty Land Tax for leasehold sales on 23 September 2022, adding example calculations to the sections on SDLT on the premium and on the net present value of rent, "showing the new Stamp Duty Land Tax rates introduced on 23 September 2022"¹.

The page sets out how SDLT applies to leasehold purchases. For an assigned lease, the buyer pays SDLT on the lump sum for the assignment, normally using the same rates and thresholds as a freehold purchase¹. For a new lease, tax is calculated on the premium and on any rent due¹. Where a premium is paid with only a nominal rent, SDLT is calculated on the premium alone¹.

The worked example for a residential premium of £275,000 gives 0% on the first £125,000, 2% on the portion from £125,001 to £250,000, and 5% on the remaining £25,000, with the amount payable stated as £3,750¹. A separate example calculates SDLT on rent where the net present value is £260,000: the amount over the £125,000 residential threshold is £135,000, taxed at a flat 1%, giving £1,350, which is added to the SDLT due on the premium¹.

The guidance states that SDLT does not apply in Scotland, where Land and Buildings Transaction Tax has applied since 1 April 2015, or in Wales, where Land Transaction Tax has applied since 1 April 2018¹. A return must be sent to HMRC where the sale price is £40,000 or more, even if no SDLT is due, though no return is needed if a lease is for less than seven years and no tax is due¹.

The page also records that the temporary increase in the residential nil rate band from £125,000 to £500,000 ended, with the SDLT holiday rates ending on 30 September 2021¹. It notes that different rates and thresholds applied to new residential leases purchased before 1 April 2025¹. The page was most recently updated on 26 February 2026¹.

Separately, a Family Building Society guide published in November 2022 sets out SDLT rates "from 23 September 2022 for a property located in England"². It lists 0% up to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5m and 12% over £1.5m, with higher rates for additional properties of 3%, 8%, 13% and 15% across the same bands, adding tax equal to 3% of the total purchase price². It states that where a sale and purchase complete simultaneously, the higher rates do not apply². The GOV.UK leasehold page does not reproduce that full band table, so the two documents present the rates in different forms¹.

Why it matters for households

Anyone buying a leasehold home in England or Northern Ireland on or after 23 September 2022 has their SDLT bill calculated on the rates shown in the updated examples, including buyers of new leases who pay both a premium and rent¹. Buyers in Scotland and Wales pay different taxes and are outside SDLT¹. The £40,000 return threshold means a filing obligation can arise even where no tax is due¹. The Family Building Society guide notes that the higher rates for additional properties add 3% of the total purchase price, and that they do not apply where a sale and purchase complete simultaneously².

What happens next

The GOV.UK page records a further update on 26 February 2026 covering residential lease SDLT thresholds and calculation examples¹. No other dated next steps are set out in the material.