UK stamp duty 2026: rates, FTB relief and how to calculate

Stamp duty is the catch-all name for the property purchase taxes that apply when a buyer takes legal ownership of land or buildings in the United Kingdom. The technical names differ by nation. In England and Northern Ireland the tax is Stamp Duty Land Tax, collected by HMRC. In Scotland it is Land and Buildings Transaction Tax, collected by Revenue Scotland. In Wales it is Land Transaction Tax, collected by the Welsh Revenue Authority.

This guide explains how each tax works in 2026-27, who qualifies for first-time buyer relief, how the surcharges for additional dwellings and non-resident buyers operate, and how to walk through a calculation step by step. It also covers the basic position for commercial and mixed-use property.

Thresholds and rates for property taxes tend to move at Budgets and Scottish or Welsh fiscal events. Figures here describe the mechanism. Anyone about to exchange contracts should pull the current bands from GOV.UK, Revenue Scotland or the Welsh Revenue Authority before relying on a number.

Stamp Duty Land Tax rates in 2026-27

SDLT applies to purchases of freehold or leasehold residential and non-residential property in England and Northern Ireland. The tax is paid by the buyer, calculated on the chargeable consideration (usually the purchase price plus the value of anything else given for the property) and reported and paid by the conveyancer through an SDLT return within 14 days of completion.

SDLT is a slice tax: the price is split into bands and each slice is taxed at its own rate, then added together. The standard residential structure has a nil-rate band at the bottom, then a 5 percent band, a 10 percent band and a 12 percent band at the top. The threshold figures are set by HM Treasury and have moved several times in recent years, most recently after the temporary thresholds introduced in 2022 and the post-April 2025 changes to first-time buyer relief and the standard nil-rate band. Verify current thresholds on GOV.UK before relying on a specific figure.

Chargeable consideration, linked transactions and leases

Chargeable consideration is not always the headline price. It includes the value of any non-cash benefit given to the seller, the assumption of an existing debt secured on the property, and the value of goods or services supplied as part of the deal beyond ordinary chattels. Fixtures form part of the price; reasonable amounts for moveable chattels such as carpets and curtains can be apportioned out at fair value. Where a single buyer (or connected parties) acquire two or more properties from the same seller as part of a single arrangement, the transactions can be linked under section 108 of the Finance Act 2003, with the bands applied once across the combined price. SDLT on the grant of a new lease has two parts: tax on any premium paid using the standard rates, and tax on the net present value of the rent over the lease term, which has its own nil-rate band and a 1 percent rate above that for residential. Assignments of existing leases are taxed on the price paid for the assignment, not on the rent.

First-time buyer relief

First Time Buyers' Relief is a partial exemption from SDLT for qualifying buyers in England and Northern Ireland. It raises the nil-rate band for the buyer's first home and applies a 5 percent rate to the next slice of the price, up to a maximum property price cap. Above the cap, no relief is available and the buyer falls back onto the standard residential rates for the entire price. Threshold and cap figures are set by HM Treasury; verify on GOV.UK before completing.

The definition of a first-time buyer is strict. The buyer (and every other person acquiring an interest in the property) must never have owned a major interest in a residential property anywhere in the world. That includes inherited property, property held in a trust where the buyer is a beneficiary, and property bought jointly. Where two people are buying together, both must qualify; if one has previously owned, the relief is lost for the whole purchase.

Worked example and devolved equivalents

Assume the current first-time buyer nil-rate threshold is X and the price cap is Y, with 5 percent payable on the slice between X and Y. A first-time buyer paying a price P that sits between X and Y pays nothing on the first X pounds and 5 percent of (P minus X) above that. A first-time buyer paying above Y loses the relief entirely and pays standard residential SDLT on the full price. The HMRC SDLT calculator on GOV.UK applies the current thresholds. A buyer who previously owned with a former partner typically fails the test, and inheriting a property triggers ownership from the date of inheritance even if since sold. Scotland offers its own first-time buyer relief under LBTT that raises the nil-rate band for qualifying buyers up to a specified threshold. Wales does not operate a specific first-time buyer relief under LTT, but the standard LTT nil-rate band is set higher than the SDLT band.

The additional property surcharge

The Higher Rates for Additional Dwellings, known as HRAD or simply the additional property surcharge, applies an extra percentage on top of every SDLT band when a buyer purchases an additional residential property in England or Northern Ireland. It is typically a single-digit percentage added to each band, so the buyer pays both the standard band rate and the surcharge on every slice of the price. Verify the current rate on GOV.UK.

The surcharge bites whenever, at the end of the day of completion, the buyer (and any spouse or civil partner, even if not on the title) owns two or more residential properties anywhere in the world, and the new purchase is not replacing the buyer's only or main residence. The test counts overseas property, inherited property where ownership exceeds 50 percent, and property held in certain trusts.

Replacement of main residence and buy-to-let

A buyer selling their previous main home on the same day they complete on a new main home avoids the surcharge. Where the sale happens after the new purchase, the surcharge is paid upfront and reclaimed if the previous home sells within 36 months. The reclaim is made by submitting an amended SDLT return through HMRC. Strict timing rules apply; the test sits in Schedule 4ZA to the Finance Act 2003. A buy-to-let purchase almost always triggers the surcharge. A second home, holiday home or property bought for an adult child in the parents' name typically triggers it too. Bare trust arrangements are usually looked through for SDLT purposes, so beneficial ownership counts as well as legal ownership.

Non-resident surcharge

A separate 2 percent non-resident surcharge applies on top of all other SDLT (including the additional property surcharge where it applies) for buyers who are not UK resident for SDLT purposes in the 12 months ending on the day of completion. Broadly, an individual buyer must be physically present in the UK for at least 183 days in the 365-day period ending on completion day to be UK resident for SDLT. Companies have a separate test based on UK tax residence and corporate connection. Buyers who become UK resident within the relevant period after completion can apply for a refund of the 2 percent by amending the SDLT return.

How to calculate stamp duty step by step

Every tiered property tax in the UK works the same way arithmetically. Take the price. Identify the bands that apply (standard, first-time buyer, or with surcharges). Split the price into slices, one slice per band. Multiply each slice by its rate. Add up the results. The HMRC SDLT calculator, Revenue Scotland LBTT calculator and Welsh Revenue Authority LTT calculator do this automatically; understanding the steps helps when planning a budget.

The four steps

Step one: identify the right tax. The location of the land determines the tax, not the residence of the buyer or seller. England and Northern Ireland use SDLT; Scotland uses LBTT; Wales uses LTT. Step two: identify the right rate table. Choose between standard residential, first-time buyer (where the buyer qualifies and the price is at or below the cap), additional property (where the surcharge applies), and non-residential or mixed-use. For a non-UK resident buying in England or Northern Ireland, add 2 percent to every band. Step three: split the price into bands using the chosen rate table. Step four: multiply each slice by its rate and add the results. Round to the nearest pound where the calculator does so.

Worked examples across the three scenarios

Standard residential SDLT: assume bands of 0 percent up to threshold A, 5 percent from A to B, 10 percent from B to C, and 12 percent above C. A buyer purchasing for a price P between B and C pays zero on the first A pounds, plus 5 percent of (B minus A), plus 10 percent of (P minus B). For the additional property surcharge, take the same price and add the current surcharge rate to every band, including the slice that would otherwise have been in the nil-rate band; the total is meaningfully higher than the standard bill, often by several thousand pounds. For first-time buyer relief, a qualifying buyer purchasing under the cap pays zero up to the first-time buyer nil-rate threshold, then 5 percent on the slice from there to the cap. At a price one pound above the cap, the relief vanishes entirely and the buyer pays standard rates on the whole price.

Stamp duty on commercial property and mixed use

SDLT, LBTT and LTT all have separate band structures for non-residential property and mixed-use property (part residential, part non-residential, such as a shop with a flat above). The rates are generally lower at the top than residential rates. Non-residential and mixed-use property is never subject to the additional property surcharge or the non-resident surcharge, regardless of who is buying.

SDLT non-residential rates have a nil-rate band, a middle band and a top band, with the top rate at 5 percent. The thresholds change at fiscal events; see the GOV.UK page on SDLT non-residential rates for the current figures. LBTT and LTT each publish their own non-residential rates. Buyers of commercial premises should also factor in VAT, which may be charged on top of the purchase price if the seller has opted to tax the property.

Mixed use, Multiple Dwellings Relief and commercial leases

A mixed-use property is part residential and part non-residential, classically a shop with a flat above on a single title. HMRC has tightened its view on what counts as mixed use; a residential property with a paddock typically does not qualify, and First-Tier Tribunal decisions have generally backed HMRC. Multiple Dwellings Relief, which reduced SDLT on the purchase of more than one dwelling by averaging the price across them, was abolished for SDLT transactions with an effective date on or after 1 June 2024, following the Spring Budget 2024. Scotland and Wales have their own multiple-dwelling mechanisms; check Revenue Scotland and the Welsh Revenue Authority. A new commercial lease is taxed on the premium (at non-residential rates) and on the net present value of the rent (using a separate non-residential NPV rate table, with the higher band at 2 percent), discounted at a statutory rate.

Land Transaction Tax (Wales) and LBTT (Scotland)

Property tax has been devolved in Scotland since 2015 (Land and Buildings Transaction Tax) and in Wales since 2018 (Land Transaction Tax). Both are tiered in the same slice-based way as SDLT but with their own bands and reliefs. The location of the land determines the tax, regardless of where the buyer lives.

LBTT in Scotland

LBTT is administered by Revenue Scotland. The standard residential structure has a nil-rate band, then bands at successively higher rates with the top rate at 12 percent. Scotland operates an Additional Dwelling Supplement (ADS) for second homes and buy-to-let, the Scottish equivalent of HRAD; the ADS rate has been changed at recent Scottish Budgets and currently sits in the mid to high single digits. Verify the current rate on the Revenue Scotland website. Scotland also offers first-time buyer relief that raises the nil-rate band for qualifying buyers up to a specified price.

LTT in Wales

LTT is administered by the Welsh Revenue Authority. The residential structure has a higher nil-rate band than SDLT and no first-time buyer relief (because the general nil-rate band does similar work). The top residential rate sits at 12 percent. Wales operates a Higher Rates surcharge on additional residential properties, equivalent in principle to HRAD and the ADS. The non-resident surcharge that applies to SDLT has no direct equivalent in LBTT or LTT.

Cross-border filing and reliefs

A buyer purchasing in Scotland or Wales should engage a conveyancer familiar with the relevant tax. The return is filed with Revenue Scotland or the Welsh Revenue Authority rather than HMRC, on different forms with different deadlines. LBTT and LTT returns are generally due within 30 days of the effective date. Penalties for late filing or late payment apply under each devolved regime. Both LBTT and LTT have their own catalogue of reliefs, some of which mirror SDLT reliefs (group relief, charities relief) and some of which are unique. The Scottish and Welsh governments can change rates at their own Budgets, which run on different timetables to the UK Budget.

How we verified this

The structure of SDLT, the slice-based calculation method and the rules on chargeable consideration, linked transactions and leasehold tax are taken from Part 4 of the Finance Act 2003 and the HMRC SDLT manual. First-time buyer relief reflects Schedule 6ZA to the Finance Act 2003 as amended. The Higher Rates for Additional Dwellings rules sit in Schedule 4ZA. The 2 percent non-resident surcharge comes from Schedule 9A, introduced by Finance Act 2021. LBTT rules are taken from the Land and Buildings Transaction Tax (Scotland) Act 2013 and Revenue Scotland guidance. LTT rules are taken from the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 and Welsh Revenue Authority guidance. The abolition of Multiple Dwellings Relief is published on GOV.UK in the HMRC policy paper of 6 March 2024. Thresholds and rates change at fiscal events; reconfirm current figures on GOV.UK, Revenue Scotland or the Welsh Revenue Authority before completion.

Frequently asked questions

What is stamp duty in the UK?

Stamp duty is the common name for the tax paid on most property purchases in the UK. In England and Northern Ireland it is formally Stamp Duty Land Tax (SDLT). In Scotland it is Land and Buildings Transaction Tax (LBTT). In Wales it is Land Transaction Tax (LTT). All three are tiered taxes paid by the buyer.

Who pays stamp duty, the buyer or the seller?

The buyer pays. The conveyancer collects the tax on completion, files the return and pays the tax to HMRC, Revenue Scotland or the Welsh Revenue Authority on the buyer's behalf. Failing to pay on time triggers interest and penalties under the relevant tax statute.

When is stamp duty due?

SDLT must be paid and the return filed within 14 days of the effective date of the transaction, which is usually completion. LBTT and LTT returns are generally due within 30 days of the effective date. Conveyancers typically handle this at completion to avoid late filing penalties.

Is stamp duty calculated on the asking price or the agreed price?

Stamp duty is calculated on the chargeable consideration, which is the price actually paid plus the value of anything else given for the property. It is not the asking price or the marketing price. Any chattels and moveable items included in the deal can sometimes be apportioned out at fair value.

Does stamp duty apply to leasehold property?

Yes. For a new lease, SDLT is charged on any premium using the normal rates and on the net present value of the rent over the lease term using a separate rate table. For the assignment of an existing lease, SDLT is charged on the price paid to take it over, not on the rent. The same principle applies to LBTT and LTT.

How much is stamp duty for a first-time buyer, and what is the price cap?

In England and Northern Ireland, a qualifying first-time buyer pays no SDLT up to a higher nil-rate threshold and 5 percent on the slice from there to a price cap set by HM Treasury. The cap is a hard cliff: one pound over and the relief vanishes for the whole transaction, with standard SDLT rates applying to the full price. Verify the current threshold and cap on GOV.UK before completing.

Does first-time buyer relief apply in Scotland and Wales?

Scotland operates its own first-time buyer relief under LBTT, which raises the nil-rate band for qualifying buyers up to a stated price. Wales does not currently operate a specific first-time buyer relief under LTT, but the general LTT nil-rate band is set higher than the SDLT band, which gives a similar effect at the lower end of the market.

Do both buyers need to be first-time buyers for the relief to apply?

Yes, for SDLT in England and Northern Ireland. Where two people buy together, both must qualify as first-time buyers. If only one buyer is a first-time buyer, the relief is lost for the whole purchase, not just for that buyer's share.

What is the additional property surcharge?

The Higher Rates for Additional Dwellings, known as HRAD, is an extra percentage added to every SDLT band when a buyer purchases an additional residential property in England or Northern Ireland. It applies to second homes, buy-to-let purchases and most situations where the buyer ends the day owning more than one residential property. Scotland operates an equivalent called the Additional Dwelling Supplement and Wales operates Higher Rates under LTT.

How do I avoid or reclaim the additional property surcharge?

The surcharge does not apply where the new purchase is a replacement for the buyer's only or main residence and the previous main residence is sold on the same day. If the sale of the previous main home happens after the new purchase but within 36 months, the surcharge is paid upfront and reclaimed by amending the SDLT return within 12 months of the sale. Non-resident buyers who become UK resident within the relevant period can claim a refund of the 2 percent non-resident surcharge by the same route.

What is the non-resident stamp duty surcharge?

The non-resident surcharge adds 2 percent to every SDLT band where the buyer is not UK resident for SDLT purposes in the 12 months ending on the day of completion. It applies in addition to the additional property surcharge if both apply, and has no LBTT or LTT equivalent.

Who counts as UK resident for the non-resident surcharge?

For individuals, the test is broadly whether the buyer was physically present in the UK on at least 183 days in any continuous 365-day period beginning in the 12 months before completion. The test for companies looks at corporate tax residence and connection to certain other persons. It is a separate test from the Statutory Residence Test for income tax.

Is stamp duty different for buy-to-let?

A buy-to-let purchase is always treated as an additional residential property and therefore attracts the surcharge in all three nations on top of the standard residential rates.

Do I pay stamp duty when I inherit a property?

Inheritance does not trigger stamp duty because no chargeable consideration changes hands. Inheritance tax may apply to the estate. Inheriting a residential property does, however, count towards the test for the additional property surcharge on any later purchase.

Does stamp duty apply to gifts of property and transfers between spouses?

A pure gift of property between individuals, with no consideration given, has no SDLT, LBTT or LTT liability. The same applies to transfers between spouses or civil partners where no consideration changes hands. Where the recipient takes on a mortgage as part of the gift or transfer, the value of the debt assumed counts as chargeable consideration and tax may apply. Separating couples should take advice before transferring property as part of a divorce or dissolution.

How is stamp duty calculated on a commercial property?

Commercial property is taxed at non-residential rates, which are different from residential rates and generally lower at the top end. The slice-based calculation method is the same. Buyers should also consider whether VAT applies, which can add 20 percent to the price if the seller has opted to tax the property and the buyer cannot recover the VAT.

Can stamp duty be added to the mortgage?

A lender may permit a higher loan-to-value mortgage that effectively releases the buyer's cash to pay stamp duty separately, but stamp duty itself is not part of the property purchase price and is not included in the mortgage. Most lenders will not lend specifically to cover stamp duty. The buyer must have the cash to pay the tax on completion.

What happens if I do not pay stamp duty on time?

HMRC, Revenue Scotland or the Welsh Revenue Authority charges interest from the date the tax was due plus a penalty for late filing and late payment. The penalty structure escalates with the length of delay. Conveyancers normally pay on completion to avoid this, but the legal liability sits with the buyer.

Is there stamp duty on transferring property to a limited company?

Transferring property from an individual to a limited company is a disposal at market value for SDLT purposes, even where no cash changes hands. The company pays SDLT (or LBTT or LTT) on the deemed market value, with the additional property surcharge potentially applying. Capital gains tax may also arise for the individual.

Does Multiple Dwellings Relief still exist?

Multiple Dwellings Relief was abolished for SDLT transactions with an effective date on or after 1 June 2024, following the Spring Budget 2024 announcement. Some transactions may still qualify under transitional rules where contracts were exchanged before that date. Scotland and Wales have their own arrangements for purchases of multiple dwellings; check Revenue Scotland or the Welsh Revenue Authority.

Are there reliefs for charities, compulsory purchase or bare land?

SDLT, LBTT and LTT each include a catalogue of reliefs including group relief for transfers within corporate groups, charities relief and relief for certain compulsory purchase transactions; conditions and clawback rules apply. Bare land is taxable too, generally at non-residential rates unless it is the garden or grounds of a residential property. The slice-based calculation method is the same.

How does stamp duty work for new-build properties?

New-build properties are subject to the same SDLT, LBTT or LTT rules as second-hand properties. The price paid to the developer is the chargeable consideration. Some incentives offered by developers (cashback, paid stamp duty) need careful structuring; HMRC has guidance on how developer contributions affect the SDLT calculation.

Does stamp duty apply to shared ownership purchases?

Yes. A shared ownership buyer can either pay SDLT on the share being bought plus on the NPV of the rent on the unowned share, or elect to pay SDLT upfront on the full market value. The right choice depends on the price, the share and whether the buyer expects to staircase up later. HMRC guidance on shared ownership covers both methods.

What is the stamp duty position for a UK resident buying abroad?

UK stamp duty taxes only apply to UK land. A UK resident buying property abroad is subject to the property tax regime of the country where the property is located. UK residents who own overseas residential property may, however, count that property when assessing whether the additional property surcharge applies to a later UK purchase.

Does stamp duty affect my mortgage application?

The stamp duty bill is part of the cash a buyer needs at completion, alongside the deposit and the legal costs. A lender's affordability test does not consider stamp duty itself, but the buyer must be able to demonstrate the cash for it.

Where can I find an official stamp duty calculator?

HMRC publishes an SDLT calculator on GOV.UK covering standard, first-time buyer, additional property and non-resident scenarios. Revenue Scotland publishes an LBTT calculator including the Additional Dwelling Supplement, and the Welsh Revenue Authority publishes an LTT calculator.