UK Stamp Duty 2026: Rates, Thresholds & Exemptions

Stamp Duty Land Tax (SDLT) is a significant cost when buying property in England and Northern Ireland. This guide covers current rates, exemptions, and how to calculate what you'll owe.

Regional Variations

Scotland has Land and Buildings Transaction Tax (LBTT), and Wales has Land Transaction Tax (LTT). This guide covers SDLT for England and Northern Ireland.

Current SDLT Rates (2026)

Standard Residential Rates

These rates apply to residential property purchases (not first homes or additional properties):

Property Price Portion	SDLT Rate
Up to £250,000	0%
£250,001 to £925,000	5%
£925,001 to £1,500,000	10%
Over £1,500,000	12%

SDLT is calculated in bands—you only pay the higher rate on the portion above each threshold.

Example Calculation

Property price: £400,000

Band	Amount	Rate	SDLT
£0 - £250,000	£250,000	0%	£0
£250,001 - £400,000	£150,000	5%	£7,500
Total			£7,500

First-Time Buyer Relief

First-time buyers benefit from enhanced thresholds:

Property Price Portion	SDLT Rate
Up to £425,000	0%
£425,001 to £625,000	5%

Price Cap

First-time buyer relief only applies to properties costing £625,000 or less. Above this, standard rates apply to the entire purchase.

First-Time Buyer Example

Property price: £500,000 (first-time buyer)

Band	Amount	Rate	SDLT
£0 - £425,000	£425,000	0%	£0
£425,001 - £500,000	£75,000	5%	£3,750
Total			£3,750

Compare to standard rates: £12,500—a saving of £8,750.

Qualifying as a First-Time Buyer

To claim relief, you must:

Never have owned property anywhere in the world
Be purchasing a residential property
Intend to live in the property as your main residence

Joint purchasers must both be first-time buyers.

Additional Property Surcharge

Buying a second home or buy-to-let property triggers a 5% surcharge on top of standard rates:

Property Price Portion	Standard Rate	With Surcharge
Up to £250,000	0%	5%
£250,001 to £925,000	5%	10%
£925,001 to £1,500,000	10%	15%
Over £1,500,000	12%	17%

Additional Property Example

Second home price: £350,000

Band	Amount	Rate	SDLT
£0 - £250,000	£250,000	5%	£12,500
£250,001 - £350,000	£100,000	10%	£10,000
Total			£22,500

Compare to main residence: £5,000—the surcharge adds £17,500.

Replacing Main Residence

If you're buying a new main residence before selling your current one, you pay the surcharge initially but can claim a refund within 3 years of the new purchase if you sell your previous home.

When SDLT Is Due

SDLT must be paid within 14 days of completion
Your solicitor/conveyancer typically handles this
They submit the return and payment to HMRC
You receive an SDLT certificate needed for Land Registry

Exemptions and Reliefs

Transfers Between Spouses/Civil Partners

Transfers between married couples or civil partners are generally exempt from SDLT, including:

Transferring property during marriage
Divorce settlements
Gifts between partners

Inherited Property

Property received through inheritance doesn't trigger SDLT. However, inherited property counts towards "additional property" status for future purchases.

Charity Purchases

Registered charities buying property for charitable purposes are exempt.

Multiple Dwellings Relief

When buying multiple properties in a single transaction, you may pay based on the average price rather than the total. This can reduce SDLT on portfolio purchases.

Scotland: LBTT Rates

Scotland replaced SDLT with Land and Buildings Transaction Tax (LBTT):

Property Price Portion	LBTT Rate
Up to £145,000	0%
£145,001 to £250,000	2%
£250,001 to £325,000	5%
£325,001 to £750,000	10%
Over £750,000	12%

First-time buyers in Scotland pay no LBTT up to £175,000.

Additional dwelling supplement: 6% (higher than England).

Wales: LTT Rates

Wales uses Land Transaction Tax (LTT):

Property Price Portion	LTT Rate
Up to £225,000	0%
£225,001 to £400,000	6%
£400,001 to £750,000	7.5%
£750,001 to £1,500,000	10%
Over £1,500,000	12%

Higher rates for additional properties: Add 4% to each band.

No First-Time Buyer Relief

Wales does not offer specific first-time buyer relief, though the £225,000 nil-rate band provides some benefit.

Planning Around SDLT

Timing Purchases

If buying close to a rate threshold, consider:

Negotiating purchase price just below threshold
Whether fixtures and fittings can be valued separately (legally)
Timing around expected rate changes

Second Home Considerations

If selling one property and buying another:

Try to complete sale before purchase to avoid surcharge
If not possible, budget for surcharge and reclaim within 3 years
Consider whether you can time the transactions

Company Purchases

Properties bought through limited companies face:

17% flat rate on purchases over £500,000
Or standard rates plus 5% surcharge on lower values
Seek professional advice for company purchases

Common SDLT Questions

Does my solicitor arrange payment?

Yes—your conveyancer will calculate SDLT, collect it from you (usually as part of completion funds), submit the return, and make the payment.

What if I'm buying with someone who already owns property?

If any buyer owns another property, the surcharge applies to the entire purchase. However, if replacing their main residence, they may qualify for refund.

Is stamp duty added to my mortgage?

No—SDLT is paid separately at completion. You can't borrow it as part of your mortgage.

What about new builds?

Standard rates apply to new builds, but some developers offer "stamp duty paid" promotions—check whether this affects the property price.

SDLT Calculator

Use HMRC's official calculator or our tools to calculate your SDLT:

HMRC SDLT Calculator

SDLT is a significant purchase cost—potentially tens of thousands of pounds on higher-value properties. First-time buyers benefit from enhanced relief up to £625,000. Additional property buyers face a 5% surcharge. Scotland and Wales have their own systems with different rates.

Factor SDLT into your budget alongside other purchase costs—see our mortgage fees explained guide for a complete picture.