Stamp Duty Guide (SDLT Rates, Calculator, Reliefs 2026)

What Is Stamp Duty Land Tax

Stamp Duty Land Tax is a progressive tax charged on residential and non-residential property purchases in England and Northern Ireland. It is payable on freehold and leasehold properties, and on transfers of land. The tax is calculated on the purchase price (or the "consideration" paid), not on the property's valuation. SDLT is paid when you buy a property over £250,000 (or over £425,000 for first-time buyers using relief). The tax is banded — you pay a percentage on each portion of the price within each band, not a single rate on the whole price. For example, at standard rates a property at £300,000 attracts 0% on the first £250,000 and 5% on the remaining £50,000, giving total SDLT of £2,500. SDLT is collected by HM Revenue & Customs (HMRC) and must be filed and paid within 14 days of completion (the "effective date" of the transaction). Your solicitor usually handles the SDLT return and payment as part of the conveyancing process. Late filing carries penalties starting at £100, and interest accrues on late payments.

Current SDLT Rates 2026

The standard SDLT rates for residential properties in England and Northern Ireland, effective from Spring 2026, are: 0% on the portion up to £250,000; 5% on the portion from £250,001 to £925,000; 10% on the portion from £925,001 to £1.5 million; and 12% on the portion above £1.5 million. These rates apply to purchases of a single residential property that is your main residence. The nil-rate band was previously £125,000 but was increased to £250,000 at the Spring Budget 2026. For non-residential and mixed-use property, the rates are: 0% up to £150,000; 2% from £150,001 to £250,000; and 5% above £250,000. If you are buying a buy-to-let property or a second home, the rates above are increased by 3% (see "Additional Property Surcharge" below). The SDLT thresholds are reviewed at each Budget and can change — always check the latest rates on gov.uk before calculating your purchase costs. Use the HMRC SDLT calculator for an accurate estimate based on your specific transaction.

First-Time Buyer Relief

First-time buyer relief significantly reduces SDLT for eligible purchasers buying their first home. In 2026, first-time buyers pay 0% SDLT on properties up to £425,000. On properties priced between £425,001 and £625,000, they pay 5% on the portion above £425,000. Properties over £625,000 receive no first-time buyer relief — you pay the standard SDLT rates on the full purchase price. To qualify, you must be a first-time buyer (never owned a property anywhere in the world before), and the property must be your main residence. Joint buyers all must be first-time buyers to claim the relief — if one partner has owned property before, no relief applies. The relief can be claimed on the SDLT return filed by your solicitor. First-time buyer relief also applies to leasehold purchases and Shared Ownership properties (with an optional election to pay SDLT on the full market value rather than the initial share). See our First-Time Buyer Guide for more details on buying your first home.

Additional Property Surcharge (3% Extra)

If you already own a residential property and buy an additional property (a second home, buy-to-let, or holiday home), you pay an extra 3% SDLT surcharge on top of the standard rates. This means the rates for additional properties are: 3% on the portion up to £250,000; 8% from £250,001 to £925,000; 13% from £925,001 to £1.5 million; and 15% above £1.5 million. The surcharge applies to purchases of £40,000 or more, and to most purchases by companies, trusts, and partnerships. If you are replacing your main residence (selling your old home and buying a new one, within a certain timeframe), you do not pay the surcharge. The replacement rules are complex — if you buy the new property before selling the old one, you must pay the surcharge upfront and claim a refund when the old property sells (within 36 months). Married couples and civil partners are treated as one unit for surcharge purposes. The surcharge also applies to non-UK residents buying residential property in England and Northern Ireland, with an additional 2% surcharge for non-residents.

Stamp Duty in Scotland (LBTT) and Wales (LTT)

Scotland and Wales have their own property taxes instead of SDLT. In Scotland, Land and Buildings Transaction Tax (LBTT) applies. Current LBTT residential rates: 0% up to £145,000; 2% from £145,001 to £250,000; 5% from £250,001 to £325,000; 10% from £325,001 to £750,000; and 12% above £750,000. First-time buyer relief in Scotland raises the nil-rate band to £175,000. An additional dwelling supplement (ADS) of 6% applies to second homes and buy-to-lets. In Wales, Land Transaction Tax (LTT) applies. Current LTT residential rates: 0% up to £180,000; 3.5% from £180,001 to £250,000; 5% from £250,001 to £400,000; 7.5% from £400,001 to £750,000; 10% from £750,001 to £1.5 million; and 12% above £1.5 million. First-time buyer relief in Wales raises the nil-rate band to £225,000. A 4% higher-rates surcharge applies to additional properties. The rates and bands in Scotland and Wales are devolved and may differ from those listed — check the Revenue Scotland and Welsh Revenue Authority websites for current rates.

How and When to Pay

SDLT is paid via your solicitor or conveyancer as part of the property purchase process. The SDLT return (form SDLT1) and payment must be submitted to HMRC within 14 days of completion (the "effective date" of the transaction). If you file or pay late, HMRC charges penalties and interest. The solicitor will request the SDLT funds from you before completion and include them in the completion statement. For most purchases, the solicitor handles everything — you authorise them to submit the return and pay the tax on your behalf. You can also file and pay SDLT directly via the HMRC online portal if you are not using a solicitor (rare for residential purchases). Keep a copy of the SDLT certificate (form SDLT5) as proof of payment — you may need it when you sell the property. If you overpay SDLT (for example, by incorrectly calculating first-time buyer relief), you can amend the return within 12 months and claim a refund from HMRC. Most refunds take 4-8 weeks to process.

SDLT Calculators and Planning

Several free SDLT calculators help you estimate your tax bill before making an offer on a property. The official HMRC SDLT calculator on gov.uk is the most reliable. Independent sites like MoneySavingExpert, Zoopla, and Rightmove also provide SDLT calculators tailored to your transaction type (standard purchase, first-time buyer, additional property). For accurate planning, use the calculator that matches your status and the specific reliefs you qualify for. SDLT planning strategies include: timing your purchase — the nil-rate band can change at Budgets; structuring the purchase (joint ownership with a first-time buyer may reduce tax, though strict rules apply); and using the "multiple dwellings relief" if you buy several properties in one transaction (relief reduced in recent years). Always consult a solicitor or property tax specialist before relying on any tax planning strategy. SDLT is a significant cost — on a £500,000 additional property, you could pay £20,000+ in SDLT. Factor this into your budget when house hunting.

FAQs

Do I pay SDLT on a property under £250,000?

If the property is your main residence and you are not a first-time buyer, no SDLT is payable under £250,000. First-time buyers pay no SDLT under £425,000. Additional properties and buy-to-lets incur the 3% surcharge even below £250,000.

Can I avoid SDLT by buying through a company?

Buying residential property through a company does not avoid SDLT — companies pay a 15% flat rate on residential properties over £500,000 (unless reliefs apply), plus the Annual Tax on Enveloped Dwellings (ATED). This is generally not a tax-saving strategy.

What is the SDLT surcharge for non-UK residents?

Non-UK residents (including individuals and companies) pay an extra 2% surcharge on top of all other SDLT rates for residential property purchases in England and Northern Ireland. This is in addition to the 3% additional property surcharge where applicable.

How is SDLT calculated for Shared Ownership?

Shared Ownership purchasers can elect to pay SDLT on the full market value upfront (lump sum) or on each share purchase as they staircase. Most first-time buyers prefer the market value election to claim first-time buyer relief and avoid future SDLT on staircasing.

Can I claim a refund on SDLT?

Yes, if you pay SDLT on the additional property surcharge and sell your previous main residence within 36 months, you can claim a refund. Overpayments due to incorrect rate application can also be reclaimed within 12 months of filing.