Stamp duty UK 2026: rates, thresholds, first-time buyer relief and how to calculate your bill

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 10 May 2026

Last reviewed 10 May 2026

✓ Fact-checked

Tax and Salary

TL;DR

Stamp Duty Land Tax (SDLT) is paid on residential property purchases in England and Northern Ireland. From April 2025, the nil-rate threshold returned to £125,000 (down from the temporary £250,000); first-time buyers pay no SDLT on the first £300,000 of a property up to £500,000. The additional dwelling surcharge is 5% on top of standard rates for second homes and buy-to-let purchases. SDLT must be paid within 14 days of completion.

Stamp Duty Land Tax is payable on the purchase of residential property above the nil-rate threshold in England and Northern Ireland. Scotland has its own Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT); these have different rates and thresholds. This guide covers the England and Northern Ireland SDLT regime for 2025/26 following the return to standard thresholds from April 2025.

The temporary SDLT cuts introduced in September 2022 - which raised the nil-rate threshold to £250,000 for all buyers and to £425,000 for first-time buyers - ended on 31 March 2025. From 1 April 2025, the standard nil-rate threshold returned to £125,000 and the first-time buyer nil-rate threshold returned to £300,000 with an upper limit of £500,000 for the relief to apply. This represents a significant additional cost for buyers who completed from April 2025 onwards, particularly first-time buyers purchasing above £300,000.

Key facts (2026)

Standard SDLT rates from April 2025: 0% on the first £125,000; 2% on £125,001 to £250,000; 5% on £250,001 to £925,000; 10% on £925,001 to £1.5 million; 12% above £1.5 million (HMRC).
First-time buyer relief: 0% on the first £300,000 and 5% on £300,001 to £500,000. No first-time buyer relief if purchase price exceeds £500,000 (HMRC).
Additional dwelling surcharge: 5% on top of all standard SDLT rates for purchases of additional residential properties (second homes, buy-to-let), increased from 3% to 5% in October 2024 (HMRC).
SDLT payment deadline: 14 days from completion. A solicitor or conveyancer normally submits the SDLT return and pays on the buyer's behalf (HMRC).
Non-UK resident surcharge: an additional 2% SDLT applies to purchases of residential property in England and Northern Ireland by non-UK residents (HMRC).

How SDLT is calculated

SDLT is calculated in bands, similar to income tax - the rate applies only to the portion of the purchase price within each band, not to the full price. For a standard purchase at £350,000: 0% on the first £125,000 equals £0; 2% on £125,001 to £250,000 (£125,000) equals £2,500; 5% on £250,001 to £350,000 (£100,000) equals £5,000. Total SDLT: £7,500. The HMRC SDLT calculator at gov.uk will compute the exact figure for any purchase price. For first-time buyer purchases up to £500,000: 0% on the first £300,000; 5% on the remaining portion up to £500,000. For a first-time buyer purchasing at £400,000: 0% on £300,000 equals £0; 5% on £100,000 equals £5,000. Total: £5,000 versus £10,000 under standard rates for the same property. If the first-time buyer purchase price exceeds £500,000, the standard rates apply in full with no first-time buyer relief at all.

Additional dwelling surcharge for second homes and buy-to-let

The additional dwelling surcharge adds 5 percentage points to each standard SDLT band on purchases of additional residential properties. This applies if you already own a residential property anywhere in the world and are purchasing another. The surcharge applies to buy-to-let purchases, second homes, and holiday properties. It does not apply to properties purchased by first-time buyers or to replacement main residences where the previous main residence has been sold within 36 months of the new purchase (or will be sold within 36 months of the new purchase). If you purchase a property and pay the surcharge because you have not yet sold your previous home, you can claim a refund of the surcharge (not the standard SDLT) if you sell the previous home within 36 months and it was your main residence at the time of the new purchase. Refund claims must be submitted within 12 months of selling the previous home or within 12 months of the filing deadline for the SDLT return, whichever is later.

First-time buyer relief in detail

First-time buyer relief is available to buyers who have never previously owned a residential property anywhere in the world - either alone or jointly. This includes inherited property or property held through a trust even if the buyer did not purchase it directly. If purchasing jointly, all purchasers must qualify as first-time buyers for the relief to apply; if one joint purchaser has previously owned a property, the relief is not available. The relief reduces SDLT to 0% on the first £300,000 of a qualifying purchase and 5% on the portion between £300,001 and £500,000. If the purchase price is above £500,000, the standard rates apply in full with no first-time buyer relief. The £500,000 cut-off is a cliff edge: a purchase at £501,000 pays the full standard SDLT (£15,250) with no relief, while a purchase at £499,999 pays only £9,999.95 in SDLT.

SDLT on mixed-use and non-residential property

Properties that are used partly for non-residential purposes - for example, a flat above a shop, a house with a registered home office, or a property with a barn used for agricultural purposes - may qualify for non-residential or mixed-use SDLT rates. Non-residential rates are generally lower: 0% on the first £150,000; 2% on £150,001 to £250,000; 5% above £250,000. Mixed-use properties are charged at these non-residential rates. For a property with a genuinely mixed use, claiming non-residential rates can produce substantial SDLT savings. However, HMRC scrutinises mixed-use claims carefully; take professional advice before claiming, as incorrect claims can result in penalties and interest.

When SDLT does not apply

Several transactions are exempt from SDLT: property transferred as a gift with no consideration (though care is needed if a mortgage is assumed); transfers on divorce or civil partnership dissolution; inherited property (no SDLT on inheritance); property transferred between companies in certain group relief situations; purchases below the nil-rate threshold; and purchases of property in Scotland (LBTT applies) or Wales (LTT applies). Leasehold properties attract SDLT on the premium (same rates as freehold purchases) and a separate SDLT on the net present value of rent above £125,000 in certain circumstances - this mainly affects commercial or long residential leases with a significant ground rent component.

Related guides

Frequently asked questions

How much is stamp duty on a £300,000 house in 2025/26?

For a standard buyer: 0% on the first £125,000 (£0); 2% on £125,001 to £250,000 (£2,500); 5% on £250,001 to £300,000 (£2,500). Total: £5,000. For a first-time buyer purchasing at £300,000: 0% on the full £300,000 (£0). Total: £0. Use the HMRC SDLT calculator at gov.uk/stamp-duty-land-tax/work-out-the-stamp-duty-land-tax for any purchase price.

Do I pay stamp duty on a second home in 2025/26?

Yes, at the standard rates plus the 5% additional dwelling surcharge on every band. For a second home or buy-to-let at £250,000: standard SDLT would be £2,500; with the 5% surcharge added across the full price, total SDLT is £15,000 (5% on £125,000 plus 7% on £125,000). The additional surcharge increased from 3% to 5% from October 2024.

Can I get a refund of the additional dwelling surcharge?

Yes, if you paid the surcharge because you had not yet sold your previous main residence, and you then sell it within 36 months. The surcharge refund (not the underlying SDLT) can be claimed from HMRC within 12 months of the sale of the previous property. The refund claim must be submitted online via HMRC's SDLT refund service; your solicitor can assist.

When does stamp duty have to be paid?

SDLT must be paid within 14 days of completion. In practice, your solicitor or conveyancer handles the SDLT return submission and payment as part of the completion process, using funds provided by you before or at completion. You do not normally interact with HMRC directly on SDLT; your conveyancer submits on your behalf. Failure to pay on time results in a penalty plus interest on the unpaid amount.

Does stamp duty apply in Scotland and Wales?

No. Scotland has its own Land and Buildings Transaction Tax (LBTT) administered by Revenue Scotland; Wales has Land Transaction Tax (LTT) administered by the Welsh Revenue Authority. Both have different rates, thresholds, and first-time buyer reliefs from SDLT. Check the relevant authority's website for current rates if purchasing in Scotland or Wales.

How we verified this guide

All SDLT rates, thresholds, and relief conditions were verified against HMRC SDLT guidance, the Finance Act 2024 additional dwelling surcharge changes, and the end of the temporary SDLT cuts from April 2025 during May 2026. We do not accept payment from conveyancers and do not earn commission on property purchase referrals.

Disclaimer: This guide is information only, not financial or tax advice. Rates, allowances and rules change. Always check the primary sources cited and consult a regulated solicitor or adviser for decisions about your own circumstances.

Primary sources

Last reviewed: May 2026.