By Chandraketu Tripathi · Updated April 2026 · Fact-checked Property · April 2026Stamp duty land tax (SDLT) is paid when purchasing a residential property in England and Northern Ireland. The rates and thresholds changed in April 2025 when the temporary pandemic-era reductions expired. Here is a complete guide to UK stamp duty rates in 2026 — including first-time buyer relief, second home surcharges and how to calculate your total bill.
First-Time Buyer Stamp Duty Relief 2026First-time buyers pay no stamp duty on the first £300,000 of a property purchase (up from the standard £125,000 nil-rate band), and 5% on any portion between £300,001 and £500,000. Properties above £500,000 do not qualify for first-time buyer relief — standard SDLT rates apply from £0 upwards. For a first-time buyer purchasing a £350,000 property: £0 on the first £300,000, then 5% on £50,000 = £2,500 total SDLT. A standard buyer purchasing the same property pays: £0 on £125,000, 2% on £125,000 (£2,500), and 5% on £100,000 (£5,000) = £7,500 total — saving the first-time buyer £5,000. Second Home and Buy to Let SurchargePurchasing an additional residential property — whether a second home, buy to let or holiday home — attracts a 3% SDLT surcharge on top of the standard rates. This applies from the first pound of the purchase price. For a £300,000 investment property, a standard buyer pays £5,000 SDLT; with the 3% surcharge, the total is £14,000. 💡 Scotland and Wales have their own property transaction taxes. In Scotland, Land and Buildings Transaction Tax (LBTT) applies with different rates and thresholds. In Wales, Land Transaction Tax (LTT) applies. If buying in Scotland or Wales, use the relevant LBTT or LTT calculator rather than the English SDLT rates. Worked Example — £400,000 Standard PurchaseOn a £400,000 property for a standard (non-first-time) buyer: 0% on the first £125,000 = £0. 2% on the next £125,000 (£125,001 to £250,000) = £2,500. 5% on the remaining £150,000 (£250,001 to £400,000) = £7,500. Total SDLT: £10,000. ⭐ OUR VERDICT Always use HMRC's official SDLT calculator at gov.uk/stamp-duty-land-tax/overview to verify your exact liability before exchanging contracts — the rates above are guidelines and individual circumstances can affect the final amount. SDLT must be paid within 14 days of completing a property purchase. Most solicitors handle this on your behalf as part of the conveyancing process. Frequently Asked QuestionsWhen did stamp duty change in 2025? The temporary SDLT thresholds introduced during the COVID-19 pandemic expired on 31 March 2025. From 1 April 2025, the standard nil-rate threshold returned to £125,000 (from £250,000) and the first-time buyer threshold returned to £300,000 (from £425,000). Second home surcharges increased from 3% to 5% in October 2024 — this remains in place in 2026. Do I pay stamp duty on a shared ownership property? Yes — but you have two options. You can pay SDLT on the full market value of the property (which may qualify for first-time buyer relief), or on just the share you are purchasing initially, paying additional SDLT as you staircase to higher ownership percentages. A solicitor can advise which approach is most cost-effective for your specific purchase. Is there stamp duty on properties under £125,000? No stamp duty is payable on residential properties purchased for £125,000 or less (the nil-rate threshold). This also applies to first-time buyers on properties up to £300,000. However, the 3% additional property surcharge applies from £1 for second homes and buy to let purchases. Can I claim stamp duty back? There are limited circumstances in which SDLT can be reclaimed. If you paid the additional property surcharge because you had not yet sold your previous main residence, you can reclaim the extra 3% within 12 months of selling the old property. Seek advice from a solicitor or tax specialist if you believe you have overpaid SDLT. |
Stamp Duty UK 2026: Rates, Thresholds & Calculator Guide
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