Stamp Duty Land Tax (SDLT) is one of the largest upfront costs when buying property in England and Northern Ireland. Whether you are a first-time buyer, moving home, or purchasing a buy-to-let investment, understanding how SDLT works can save you thousands of pounds. This guide explains the 2026/27 rates, reliefs, and how to calculate your exact stamp duty liability.
What is Stamp Duty Land Tax?
SDLT is a tax paid by the buyer when purchasing a property or land over a certain price in England and Northern Ireland. It is charged on a tiered system, meaning you pay different rates on different portions of the property price. The tax is collected by HMRC and must be paid within 14 days of completing the purchase.
SDLT applies to both freehold and leasehold properties, as well as land transactions. It is calculated on the purchase price or, in some cases, the lease premium. Your solicitor or conveyancer will typically prepare the SDLT return and submit it to HMRC on your behalf.
It is important to note that SDLT only applies in England and Northern Ireland. Scotland uses a different system called Land and Buildings Transaction Tax (LBTT), and Wales uses Land Transaction Tax (LTT). Each has its own rates and thresholds.
SDLT Rates 2026/27
The standard SDLT rates for residential property purchases in 2026/27 are as follows:
| Property Price Band | SDLT Rate |
|---|---|
| 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% |
SDLT is charged on a progressive basis, meaning each rate only applies to the portion of the price within that band. For example, if you buy a property for £300,000, you pay 0% on the first £125,000, 2% on the portion from £125,001 to £250,000, and 5% on the portion from £250,001 to £300,000.
Non-residential property (commercial) has different rates, with 0% on the first £150,000, 2% on £150,001 to £250,000, and 5% above £250,000.
First-Time Buyer Relief
First-time buyers in England and Northern Ireland benefit from an enhanced SDLT relief introduced in 2017 and updated since. To qualify, you must:
- Have never owned a residential property anywhere in the world.
- Purchase a property costing £500,000 or less.
- Intend to live in the property as your main home.
The relief gives first-time buyers:
| Property Price Band | First-Time Buyer Rate | Standard Rate |
|---|---|---|
| Up to £300,000 | 0% | 0% |
| £300,001 – £500,000 | 5% | 5% |
| Over £500,000 | No relief (standard rates apply) | 5% on £250k–£925k band |
For a property purchased at £250,000, a first-time buyer pays £0 in SDLT, while a standard buyer would pay £2,500. This represents a meaningful saving, especially for buyers in higher-cost areas.
Additional Property Surcharge
If you already own a residential property and are buying an additional one, you will pay a 5% surcharge on top of the standard SDLT rates. This surcharge was introduced in April 2016 and applies to:
- Second homes: If you are buying a property alongside your existing main residence.
- Buy-to-let properties: If the property is intended for rental rather than your own use.
- Corporate purchases: Companies buying residential property also attract the surcharge.
For example, on a £300,000 buy-to-let property, the standard SDLT would be £5,000. With the 5% surcharge, you pay an additional £15,000, making the total SDLT £20,000. This is a significant cost that investors must factor into their calculations.
The surcharge applies regardless of whether you own property in the UK or abroad. If you have ever owned a residential property, you will be considered an additional property buyer.
Scotland LBTT & Wales LTT
The UK has three different property transaction tax systems, each operating independently:
Scotland — Land and Buildings Transaction Tax (LBTT)
Scotland replaced SDLT with LBTT in April 2015. The rates for 2026/27 are:
| Property Price Band | LBTT Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Over £750,000 | 12% |
Scotland also has an Additional Dwelling Supplement (ADS) of 8% for additional properties (higher than England's 5% surcharge). First-time buyers in Scotland benefit from a relief where the 0% band extends to £175,000.
Wales — Land Transaction Tax (LTT)
Wales replaced SDLT with LTT in April 2018. The residential rates for 2026/27 are:
| Property Price Band | LTT Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 10% |
| Over £750,000 | 12% |
Wales charges a higher rate for additional properties: 5% surcharge on top of standard rates for properties up to £180,000, and higher surcharges above that threshold. There is no separate first-time buyer relief in Wales, but the higher 0% threshold (£225,000) means many first-time buyers still pay nothing.
How to Calculate Your SDLT
Calculating SDLT manually involves applying the progressive rates to each portion of the property price. Here is a worked example for a property costing £400,000 in England:
- First £125,000 × 0% = £0
- £125,001 to £250,000 (£125,000) × 2% = £2,500
- £250,001 to £400,000 (£150,000) × 5% = £7,500
- Total SDLT: £0 + £2,500 + £7,500 = £10,000
If this same property were a buy-to-let with the 5% surcharge, the calculation would be different. The 5% surcharge applies to the total consideration, so you would add 5% to each band's rate, effectively paying a higher total.
Using our calculator removes the complexity and gives you an instant breakdown of exactly how much SDLT you will pay, including any reliefs you qualify for.
Exemptions & Reliefs
Several reliefs and exemptions can reduce or eliminate your SDLT liability:
- First-time buyer relief: As detailed above, 0% on the first £300,000 for properties up to £500,000.
- Shared ownership: You can choose to pay SDLT on the full value or just on your share. If you opt for the share value and your share is under £300,000, you may pay less SDLT.
- Transfer between spouses: No SDLT on transfers between married couples or civil partners, provided they are living together.
- Inherited property: No SDLT when inheriting a property, as inheritance tax applies instead.
- Right to Buy: Properties purchased through the Right to Buy scheme may qualify for a reduced SDLT calculation based on the discount.
- Green homes: Energy-efficient new builds may qualify for reduced rates under certain government schemes.
Always check if you qualify for any reliefs before completing your purchase, as the savings can be substantial.
Calculate your Stamp Duty instantly
Use our free Stamp Duty Calculator to see exactly how much SDLT you will pay on any property price, including all reliefs and surcharges.
Use Stamp Duty Calculator →Frequently Asked Questions
Who qualifies for first-time buyer stamp duty relief?
You qualify for first-time buyer relief if you have never owned a residential property anywhere in the world and you are buying a property costing £500,000 or less as your main home. The relief gives you 0% SDLT on the first £300,000 and 5% on the portion from £300,001 to £500,000.
What is the additional property surcharge?
If you already own a residential property and are buying another one, you pay a 5% surcharge on top of the standard SDLT rates in England and Northern Ireland. This applies to second homes and buy-to-let investments. In Scotland, the equivalent is 8% (ADS), and in Wales, the rates differ.
Is stamp duty different in Scotland and Wales?
Yes. Scotland uses Land and Buildings Transaction Tax (LBTT) with different bands and an 8% Additional Dwelling Supplement for additional properties. Wales uses Land Transaction Tax (LTT) with its own rate bands. England and Northern Ireland share the SDLT system. You must use the correct tax system for the country where the property is located.
When do I pay stamp duty?
SDLT must be paid within 14 days of completion of your property purchase. Your solicitor or conveyancer typically handles the SDLT return and payment on your behalf, submitting it to HMRC. Late payment can result in penalties and interest charges from HMRC.
Do I pay stamp duty on a property under £125,000?
For standard buyers, no SDLT is due on properties costing £125,000 or less in England and Northern Ireland. First-time buyers pay no SDLT on properties up to £300,000. However, if you are buying an additional property, the 5% surcharge applies even to properties below £125,000, meaning you would pay 5% on the entire purchase price.