Key facts (2026): Stamp Duty Land Tax (SDLT) in England applies on residential properties over £125,000 for home movers (£300,000 for first-time buyers until March 2025, then reverting to £125,000). Rates range from 2% to 12%. A 3% surcharge applies on second homes and buy-to-let purchases. Scotland has LBTT and Wales has LTT — separate systems.

Stamp duty is one of the largest transaction costs in buying property in the UK. Understanding exactly how much you will pay — and whether any reliefs apply — is essential when budgeting for a property purchase. The first-time buyer relief significantly reduced the cost for new buyers, though the threshold reduced from April 2025.

Current SDLT Rates England 2026

Standard residential rates: £0–£125,000: 0%; £125,001–£250,000: 2%; £250,001–£925,000: 5%; £925,001–£1,500,000: 10%; Over £1,500,000: 12%. SDLT is calculated on each band — on a £400,000 property: 0% on first £125,000, 2% on next £125,000 (£2,500), 5% on remaining £150,000 (£7,500) = total SDLT of £10,000.

First-Time Buyer Relief

From April 2025, first-time buyer SDLT relief reverted to the pre-2022 structure: 0% on first £300,000 (for properties up to £500,000 total). On a £400,000 first home: 0% on first £300,000, 5% on remaining £100,000 = £5,000 — saving £5,000 versus the standard rate. For properties over £500,000, standard rates apply with no first-time buyer relief.

Second Home and Buy-to-Let Surcharge

A 3% SDLT surcharge applies on top of standard rates for purchases of additional residential properties — second homes, buy-to-let, and holiday homes. From October 2024 this increased to 5% for purchases over £40,000. On a £300,000 buy-to-let: standard SDLT £5,000 + 5% surcharge on full value (£15,000) = £20,000 total. The surcharge makes buy-to-let purchases significantly more expensive and has contributed to landlords exiting the market.

Our Verdict

Stamp duty is a significant transaction cost that should be factored into your property budget from the outset — not discovered at the point of exchange. Use HMRC's official SDLT calculator at gov.uk/stamp-duty-land-tax/overview to calculate your exact liability. For first-time buyers, the relief on properties up to £500,000 remains valuable. For buy-to-let investors, the 5% surcharge has materially changed the investment calculus.

Frequently Asked Questions

How much is stamp duty UK 2026?

On a £300,000 property for a home mover: £5,000. First-time buyer on same property: £0 (within first-time buyer relief). Rates: 2% on £125k–£250k, 5% on £250k–£925k.

Do first-time buyers pay stamp duty UK?

Not on the first £300,000 of a property up to £500,000 total. Above £300,000 on an eligible property, 5% applies on the excess.

What is the stamp duty surcharge on second homes?

5% surcharge on top of standard rates for additional residential properties purchased from October 2024.

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Disclaimer: For informational purposes only. Verify with official sources before making decisions.

Last updated: April 2026 · Author: Chandraketu Tripathi