Stamp Duty Land Tax: A Complete Guide for 2026
What Is Stamp Duty Land Tax and Who Pays It?
Stamp Duty Land Tax (SDLT) is a tax on property purchases in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT) — both operate under separate rules.
You pay SDLT when you:
- Buy a freehold property
- Buy a new or existing leasehold
- Purchase through Shared Ownership
- Take on a mortgage as part of a property transfer
The tax is calculated in bands — not as a flat rate on the total purchase price. You pay each rate only on the portion of the price that falls within that band, similar to how income tax works.
Stamp Duty Rates for Home Movers in 2026
The temporary thresholds that were introduced in September 2022 expired on 31 March 2025. Standard residential rates now apply for anyone completing a purchase after that date.
- Up to £125,000 — 0%
- £125,001 – £250,000 — 2%
- £250,001 – £925,000 — 5%
- £925,001 – £1,500,000 — 10%
- Over £1,500,000 — 12%
Example: Buying a £400,000 home as your primary residence
- First £125,000 at 0% = £0
- Next £125,000 at 2% = £2,500
- Remaining £150,000 at 5% = £7,500
- Total SDLT: £10,000
First-Time Buyer Stamp Duty Relief
First-time buyers receive reduced rates, but the thresholds are lower than they were between September 2022 and March 2025. You and everyone you are buying with must be purchasing for the first time to qualify.
- 0% on the first £300,000
- 5% on the portion between £300,001 and £500,000
- If the property costs more than £500,000, you do not qualify for relief — standard home mover rates apply in full.
Example: First-time buyer purchasing a £420,000 flat
- First £300,000 at 0% = £0
- Remaining £120,000 at 5% = £6,000
- Total SDLT: £6,000
Use our Stamp Duty Calculator to check your exact figure in under a minute.
Stamp Duty on a Second Home or Buy-to-Let Property
Purchasing an investment property — whether a buy-to-let unit or a second residence — attracts a 5% surcharge on top of the standard rates. This increased from 3% to 5% following the Autumn Budget in October 2024.
- Up to £125,000 — standard 0%, with surcharge 5%
- £125,001 – £250,000 — standard 2%, with surcharge 7%
- £250,001 – £925,000 — standard 5%, with surcharge 10%
- £925,001 – £1,500,000 — standard 10%, with surcharge 15%
- Over £1,500,000 — standard 12%, with surcharge 17%
Example: Buying a £500,000 buy-to-let apartment in London
- First £125,000 at 5% = £6,250
- Next £125,000 at 7% = £8,750
- Remaining £250,000 at 10% = £25,000
- Total SDLT: £40,000
Browse our current off-plan properties in London — many offer strong rental yields and are available below market rate for early investors.
Stamp duty Frequently Asked Questions
FAQ
SDLT is calculated in bands, not on the total price. Each rate applies only to the portion of the purchase price within that specific band. If you buy a £400,000 home, you pay 0% on the first £125,000, 2% on the next £125,000, and 5% on the final £150,000 — giving you a total of £10,000. Our calculator handles the maths for any scenario, including investment surcharges and first-time buyer relief.
If a property is transferred as a genuine gift with no money changing hands and no mortgage attached, SDLT is not payable. However, if you take on any part of the seller's outstanding mortgage as part of the transfer, SDLT becomes due on the value of the debt you assume — not just the cash element. This catches many buyers by surprise, so always take legal advice before completing a gifted transfer.
You must file your SDLT return and pay the tax within 14 days of the completion date — the day you legally receive the keys and ownership transfers. Missing this deadline triggers automatic penalties and interest charges from HMRC. Your solicitor will typically handle the submission, but you remain legally responsible for ensuring it is filed on time.
Yes. If you paid the 5% additional dwelling surcharge because you owned two properties on the day you completed your new purchase, you can apply to HMRC for a refund once you sell your previous main residence — provided the sale completes within 36 months of your new purchase. The refund covers the full surcharge amount and can be claimed directly through HMRC's online portal.
Yes. Every buy-to-let and second home purchase is subject to the standard SDLT rates plus the 5% additional dwelling surcharge introduced at the October 2024 Autumn Budget. There is no relief available for individual landlords or portfolio investors. Corporate buyers face additional considerations, including the Annual Tax on Enveloped Dwellings (ATED) for properties held in company structures valued above £500,000.
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