UK Stamp Duty 2026 — SDLT Rates, First-Time Buyer Relief, 5% Surcharge
Reviewed by Alex Morgan · Updated April 2026 · Post-April-2025 thresholds confirmed for 2026/27
2026 SDLT bands — England + Northern Ireland
| Slice of price | Standard rate | First-time buyer rate | Buy-to-let / 2nd home (+5%) |
|---|---|---|---|
| £0 – £125,000 | 0% | 0% (to £300k) | 5% |
| £125,001 – £250,000 | 2% | 0% (to £300k) | 7% |
| £250,001 – £300,000 | 5% | 0% (to £300k) | 10% |
| £300,001 – £500,000 | 5% | 5% | 10% |
| £500,001 – £925,000 | 5% | Standard rates apply (relief lost) | 10% |
| £925,001 – £1.5m | 10% | 10% | 15% |
| Over £1.5m | 12% | 12% | 17% |
SDLT is "slab-and-slice": each band rate applies only to the slice of price within it, not to the whole property value. So a £300,000 home pays 0% on the first £125k + 2% on the next £125k (£2,500) + 5% on the last £50k (£2,500) = £5,000 SDLT for a regular buyer. A first-time buyer pays £0 (entirely under the £300k threshold). A buy-to-let buyer pays £20,000 (the +5% on the whole £300k) plus standard £5,000 = £25,000.
Worked examples — what you'll actually pay
£400,000 home — England
- Regular buyer: 0% × £125k + 2% × £125k (£2,500) + 5% × £150k (£7,500) = £10,000
- First-time buyer: 0% × £300k + 5% × £100k = £5,000 (full relief still applies — under £500k)
- Buy-to-let / 2nd home: +5% × £400k (£20,000) + standard £10,000 = £30,000
- Non-resident buy-to-let: +5% surcharge + 2% non-resident surcharge + standard = £38,000
£600,000 home — England
- Regular buyer: 0% × £125k + 2% × £125k + 5% × £350k = £20,000
- First-time buyer: Same as regular — relief lost above £500k = £20,000
- Buy-to-let: +5% × £600k (£30,000) + standard £20,000 = £50,000
£250,000 home — England
- Regular buyer: 0% × £125k + 2% × £125k = £2,500
- First-time buyer: 0% × £250k = £0
- Buy-to-let: +5% × £250k (£12,500) + standard £2,500 = £15,000
First-time buyer relief — the £500k cliff
First-time buyer relief was introduced in 2017. From 1 April 2025, the relief structure tightened back:
- 0% SDLT up to £300,000 (previously £425,000 in 2024/25)
- 5% on the slice £300,001 – £500,000 (previously up to £625,000)
- Above £500,000: relief is lost entirely — pay full standard rates from £125k upward
- Both buyers must be first-time buyers (no exception for joint purchases)
- "First-time buyer" = never owned ANY property worldwide, including inheritance
The £500k cliff is the cruellest part of the design — buy a £499,999 first home and pay £4,999 SDLT; buy a £500,001 first home and pay £15,000 (you fall back to standard rates). For London first-time buyers, the £500k threshold is increasingly difficult to stay under — push the 1-bed flat budget down or pay the full SDLT premium.
The +5% second-home surcharge (HRAD)
Higher Rates for Additional Dwellings (HRAD) is a +5 percentage point surcharge on top of standard SDLT rates for buy-to-let, second homes, holiday lets, or any residential purchase by an individual or partnership already owning another residential property anywhere in the world. The surcharge was raised from +3% to +5% on 30 October 2024 with effect for completions from 31 October 2024.
- Applies to whole price, not just slices above thresholds.
- Limited companies always pay the surcharge on residential acquisitions, regardless of whether the company already owns property.
- Married couples treated as one unit — if either spouse owns an additional property, both are caught.
- Refundable if main home is sold within 36 months — pay the surcharge upfront, claim refund when previous main home sells (form SDLT16).
- £40,000 minor exemption — purchases below £40,000 are exempt from the surcharge.
- Inherited property within 36 months doesn't count toward "owning another property" if inherited share is under 50%.
Non-resident +2% surcharge
Non-UK residents (under HMRC's specific SDLT residence rules — present in UK fewer than 183 days in the 12 months before purchase) pay an additional 2 percentage points on top of all other SDLT rates. Stacks with the +5% HRAD surcharge for non-resident buy-to-let. The two surcharges combined mean non-resident landlords pay 7%/9%/12%/15%/17% across the bands. UK citizens working overseas can qualify for refunds if they meet the residence test in the 12 months following purchase (form SDLT2).
Scotland (LBTT) and Wales (LTT) — different rules
| Region | Tax name | Starting threshold | Top rate | Additional dwelling surcharge |
|---|---|---|---|---|
| England + Northern Ireland | SDLT | £125,000 | 12% above £1.5m | +5% |
| Scotland | LBTT | £145,000 (£175k FTB) | 12% above £750k | +8% (raised Dec 2024 from +6%) |
| Wales | LTT | £225,000 | 12% above £1.5m | +4% |
The cross-region picture: Wales has the highest standard threshold (£225k), no first-time buyer relief. Scotland has the harshest second-home surcharge (+8%) — partly aimed at the highland/island holiday-let market. England/NI has tighter first-time buyer relief than the others. If you're moving across UK borders for a property, factor in which regime applies (it's the property's location, not yours).
When you pay and how
SDLT must be paid within 14 days of completion. The conveyancer:
- Calculates the SDLT amount based on the agreed price + applicable surcharges/reliefs.
- Files the SDLT1 return with HMRC online.
- Arranges payment from the buyer's funds at completion (typically pulled from deposit/mortgage drawdown).
- Sends you the SDLT5 certificate confirming payment — required for Land Registry registration.
Late filing penalty: £100 if up to 3 months late, £200 if up to 12 months. Late payment interest at HMRC base rate + 4%. If your conveyancer fails to file you remain liable — always confirm completion-day reconciliation includes the SDLT certificate.
Pair this with
- → UK Lifetime ISA 2026 — first-time buyer 25% bonus + £450k cap
- → UK Capital Gains Tax 2026/27 — when you sell, CGT bites (60-day rule)
- → UK Inheritance Tax 2026/27 — RNRB on main home for descendants
- → UK Self Assessment 2026/27 — landlords filing rental income
- → UK Marriage Allowance 2026