Stamp Duty Land Tax (SDLT) is one of the biggest upfront costs when buying property in England or Northern Ireland. For a typical house purchase, it can add thousands of pounds to your costs, and the rules around first-time buyers, additional properties, and devolved nations each have their own quirks. This guide sets out exactly what you will pay in 2026 and how to plan for it.
Standard SDLT Rates (England & Northern Ireland)
SDLT is charged on a tiered basis, meaning you only pay the higher rate on the portion of the price within each band, not the entire price.
| Property Price Band | SDLT 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% |
Example: Buying at £350,000
- 0% on the first £125,000 = £0
- 2% on the next £125,000 (up to £250,000) = £2,500
- 5% on the remaining £100,000 (up to £350,000) = £5,000
- Total SDLT: £7,500
First-Time Buyer Relief
First-time buyers benefit from enhanced nil-rate bands, significantly reducing the stamp duty on lower-value properties:
| Property Price Band | First-Time Buyer Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Above £500,000 | Standard rates apply (relief lost) |
The relief is only available on properties up to £500,000. If the purchase price exceeds this threshold, you lose the first-time buyer relief entirely and pay standard rates from the first pound. Both buyers must be first-time buyers for joint purchases to qualify.
Example: First-Time Buyer at £425,000
- 0% on the first £300,000 = £0
- 5% on the remaining £125,000 = £6,250
- Total SDLT: £6,250 (saving £3,750 vs standard rates)
Additional Property Surcharge
If you already own a residential property anywhere in the world and buy an additional one, you pay a 5% surcharge on top of the standard rates. This applies to buy-to-let purchases, second homes, and holiday homes. The surcharge increased from 3% to 5% from 31 October 2024.
| Property Price Band | Standard Rate | Additional Property Rate |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1,500,000 | 10% | 15% |
| Above £1,500,000 | 12% | 17% |
You can reclaim the surcharge if you sell your previous main home within 3 years of buying the new one. The claim must be made within 12 months of selling, or within 12 months of the filing deadline for the new purchase, whichever is later.
Scotland: Land and Buildings Transaction Tax (LBTT)
Scotland replaced SDLT with LBTT in April 2015. The bands and rates differ from England:
| Property Price Band | LBTT Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Above £750,000 | 12% |
Scotland's Additional Dwelling Supplement (ADS) is 6% on the total purchase price for additional properties. First-time buyers in Scotland pay no LBTT on properties up to £175,000.
Wales: Land Transaction Tax (LTT)
Wales has its own tax with generally higher nil-rate bands than England:
| Property Price Band | LTT Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.5% |
| £750,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Wales does not currently offer first-time buyer relief. The higher property rate for additional dwellings is 4% on the entire price.
When and How to Pay
SDLT must be filed and paid within 14 days of completion. Your solicitor or conveyancer typically handles this as part of the purchase process. Late filing incurs automatic penalties and interest charges. The return is submitted to HMRC electronically, and your solicitor will add the SDLT cost to their completion statement.
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