Stamp Duty Explained: 2026 Rates and Thresholds
Current SDLT rates with worked examples, the first-time buyer cliff edge at £500,000, and how the English system compares with Scotland and Wales.
The Short Version
- SDLT applies in England and Northern Ireland only
- Standard nil-rate band is £125,000; rates then 2%, 5%, 10% and 12% by slice
- First-time buyers pay nothing to £300,000, but relief is lost entirely above £500,000
- Additional properties add 5 percentage points to every band from £40,000
- Non-UK residents pay a further 2%: England and NI only
- The return is due within 14 days of completion, and liability rests with the buyer
Where SDLT applies
Stamp Duty Land Tax applies in England and Northern Ireland only. Scotland charges Land and Buildings Transaction Tax through Revenue Scotland; Wales charges Land Transaction Tax through the Welsh Revenue Authority. If you are buying outside England and Northern Ireland, SDLT rates do not apply to you at all.
Standard residential rates
These rates have applied since 1 April 2025 and were left unchanged for 2026. SDLT is charged on a slice basis: each rate applies only to the portion of the price within that band, not to the whole price.
| Portion of purchase price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Worked example, a £400,000 purchase. Nothing on the first £125,000. 2% on the next £125,000 gives £2,500. 5% on the remaining £150,000 gives £7,500. Total: £10,000.
First-time buyer relief
| Portion of purchase price | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Above £500,000 | No relief: standard rates apply to the whole price |
The maximum saving is £5,000, reached at any price between £300,000 and £500,000.
The cliff edge. There is no taper. A first-time buyer paying £500,000 owes £10,000. At £500,001 the relief vanishes entirely and standard rates apply to the full price: £15,000. One extra pound of purchase price costs £5,000 in tax. If you are negotiating anywhere near £500,000, this is worth raising explicitly.
Every joint buyer must be a first-time buyer. Previous ownership anywhere in the world counts, including inherited shares.
Additional property surcharge
Buying a second home, a buy-to-let or any additional residential property adds 5 percentage points to every band, where the price is £40,000 or more.
| Portion of purchase price | Rate with surcharge |
|---|---|
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1,500,000 | 15% |
| Above £1,500,000 | 17% |
If you are replacing your main residence the surcharge generally does not apply. Where you buy before selling, you pay it and can reclaim it if the previous main residence sells within 36 months.
Non-UK resident surcharge
Non-UK residents pay a further 2% on top of the applicable rate. This applies in England and Northern Ireland only: neither Scotland nor Wales operates a non-resident surcharge.
How SDLT compares across the UK
| England & NI | Scotland | Wales | |
|---|---|---|---|
| Tax | SDLT | LBTT | LTT |
| Collected by | HMRC | Revenue Scotland | Welsh Revenue Authority |
| Nil-rate band | £125,000 | £145,000 | £225,000 |
| First-time buyer relief | £300,000, lost above £500,000 | £175,000, no cap | None |
| Additional property | +5% per band | 8% on whole price | Separate higher bands |
| Non-resident surcharge | +2% | None | None |
| Return deadline | 14 days | 30 days | 30 days |
The additional-property row is the one that catches people out. Scotland's 8% is charged on the entire purchase price as a single sum, not band by band. On a £300,000 second home that is £24,000 in Scotland against roughly £15,000 in England.
Filing and payment
Your solicitor normally files the SDLT return and pays from completion funds. The return is due within 14 days of completion in England and Northern Ireland, a tight deadline, and penalties and interest apply for late filing.
Liability rests with the buyer, not the solicitor. If a return is filed incorrectly you remain responsible, which is a reason to check the figure rather than assume.
Reliefs worth knowing about
- Replacement of main residence: reclaim the surcharge if you sell your previous home within 36 months
- Multiple dwellings relief: abolished from June 2024; older guidance referring to it is out of date
- Mixed-use property: property with both residential and commercial elements may attract non-residential rates, which are lower. HMRC scrutinises these claims closely.
- Transfers on divorce or separation: often exempt where made under a court order
- Inherited property: no SDLT on inheritance itself, though it may affect first-time buyer status and surcharge liability on future purchases
A caution on SDLT reclaim firms
Firms offering to reclaim overpaid SDLT on a contingency basis have become common. Some claims are legitimate, particularly around mixed-use classification or uninhabitable property. Many are not, and HMRC has challenged large numbers.
If a claim is rejected you remain liable for the tax, interest and potentially penalties, regardless of who advised you. Take advice from a regulated tax adviser or your solicitor before signing anything.
A Note on Jurisdiction
SDLT applies in England and Northern Ireland. Scotland charges Land and Buildings Transaction Tax with a £145,000 nil-rate band and an 8% Additional Dwelling Supplement on the whole price. Wales charges Land Transaction Tax with a £225,000 nil-rate band and no first-time buyer relief. If you are buying outside England and Northern Ireland, the rates on this page do not apply to you.
Common Questions
Frequently Asked Questions
What is the stamp duty threshold in 2026?
For standard buyers in England and Northern Ireland, SDLT starts at £125,000. Rates are then 2% to £250,000, 5% to £925,000, 10% to £1.5 million and 12% above that, charged on a slice basis. First-time buyers pay nothing up to £300,000. These rates have applied since 1 April 2025 and were unchanged for 2026.
How much stamp duty on a £400,000 house?
For a standard buyer, £10,000: nothing on the first £125,000, 2% on the next £125,000 giving £2,500, and 5% on the remaining £150,000 giving £7,500. A qualifying first-time buyer would pay £5,000: nothing to £300,000, then 5% on the £100,000 above it.
When do I have to pay stamp duty?
The SDLT return must be filed and the tax paid within 14 days of completion in England and Northern Ireland. Your solicitor normally handles this from completion funds. In Scotland the LBTT deadline is 30 days, and in Wales the LTT deadline is also 30 days. Liability rests with the buyer, not the solicitor.
Can I get the second home surcharge refunded?
Yes, where you were replacing your main residence but bought the new one before selling the old. If you sell your previous main residence within 36 months of the new purchase, you can reclaim the surcharge from HMRC. The equivalent applies to Scotland's Additional Dwelling Supplement, also on a 36-month window, reclaimed from Revenue Scotland.
Is multiple dwellings relief still available?
No. Multiple dwellings relief was abolished with effect from June 2024. Any guidance still describing it as available is out of date. Portfolio buyers can no longer average rates across multiple units in the way the relief previously permitted.
Keep Reading
Related Guides and Pages
First-Time Buyer Guide
How the relief works in practice and what else to budget for.
Scotland vs England
Why Scotland's second-home surcharge costs so much more.
What Conveyancing Costs
Where tax sits alongside fees and disbursements.