Property & Mortgages
Stamp Duty Land Tax: A Complete Guide for 2026/27
Stamp Duty Land Tax (SDLT) is charged on most property purchases in England and Northern Ireland. Understanding how it works, who pays what, and whether any reliefs apply can save you thousands.
How stamp duty is calculated
SDLT is a tiered tax. You pay each rate only on the portion of the purchase price that falls within that band, not on the full amount. A common mistake: a £300,000 purchase does not mean 5% of the whole price.
Example: £350,000 home purchase (standard buyer)
Standard residential rates (from 1 April 2025)
These rates apply to main home purchases by buyers who already own property. First-time buyers and second-home buyers have different rates, see below.
| Purchase price band | SDLT rate |
|---|---|
| Up to £250,000 | 0% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
These thresholds replaced the temporary higher thresholds (£250,000 nil-rate, £425,000 FTB relief) that were in place from September 2022 to March 2025.
First-time buyer relief
If you have never owned a home in the UK or abroad, you qualify for first-time buyer relief, which reduces the SDLT on your purchase up to certain limits.
| Purchase price band | SDLT rate (FTB) |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Above £500,000: standard rates apply in full (no relief) | |
Example: £450,000 first-time buyer purchase
A standard buyer would have paid £10,000, saving £2,500.
Important: both buyers must be first-time buyers
If you are buying jointly and one of you has previously owned a home, neither of you qualifies for first-time buyer relief, the full standard rates apply to the whole purchase.
Second homes and buy-to-let: the 5% surcharge
If you already own a residential property anywhere in the world and are buying an additional one, a 5 percentage point surcharge applies on top of every standard rate band. This applies to second homes, buy-to-let investments, and holiday homes.
| Purchase price band | Standard rate | Additional dwelling rate |
|---|---|---|
| Up to £250,000 | 0% | 5% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
The surcharge was raised from 3% to 5% in October 2024. If you buy a new main home before selling your old one, you pay the surcharge initially, but can claim a refund within 36 months if you sell the previous property within that window.
Scotland and Wales have separate taxes
SDLT only applies in England and Northern Ireland. Different taxes apply elsewhere:
Scotland: LBTT
Land and Buildings Transaction Tax, administered by Revenue Scotland. Different thresholds and rates, check gov.scot for current figures. A 6% Additional Dwelling Supplement applies for second homes.
Wales: LTT
Land Transaction Tax, administered by the Welsh Revenue Authority. Different thresholds and rates, check gov.wales for current figures. A 4% higher residential rates surcharge applies for additional properties.
When and how you pay SDLT
SDLT is due within 14 days of completion, the day you legally take ownership. In practice, your solicitor or conveyancer almost always handles the SDLT return and payment on your behalf as part of the conveyancing process, collecting the money from you at or before completion.
If HMRC does not receive the return and payment within 14 days, automatic penalties and interest apply. Late filing penalties start at £100 for up to 3 months late, rising to £200 and then 5% of the tax due. Interest accrues daily on unpaid amounts.
Exempt transactions (no SDLT due)
- Transfers as gifts (no money changing hands)
- Transfers between spouses or civil partners on relationship breakdown
- Inherited property (under a will)
- Purchases below £40,000
Shared ownership: two ways to pay
When you buy a shared ownership property, you have a choice about how to pay SDLT. You only have to make this decision once, so it's worth understanding the trade-offs before completion.
Option 1: Pay on your share only
You pay SDLT only on the value of the share you are buying now. This is lower upfront, but when you staircase (buy further shares), you pay SDLT on each additional purchase once your cumulative share exceeds 80%.
Option 2: Market value election
You elect to pay SDLT on the full market value of the property as if you owned 100%. You pay more now, but no further SDLT is due on any future staircasing. Often the better choice if you plan to staircase quickly.
First-time buyer relief can apply to shared ownership purchases if you elect to pay on the full market value and the property is worth £500,000 or less.
Can I get a stamp duty refund?
There are two common situations where you can claim back SDLT you have already paid:
Selling your old home within 36 months
If you bought a new main residence before selling your old one, you paid the 5% additional-dwelling surcharge at the time. Once you sell your previous property, you can claim a full refund of that surcharge — as long as you complete the sale within 36 months of purchasing the new property. You must apply within 12 months of the sale. Use HMRC's online portal to submit the amendment to your original SDLT return.
Overpaid relief (e.g. first-time buyer relief)
If you paid SDLT without claiming first-time buyer relief you were entitled to, you can amend your SDLT return to claim it back. The amendment window is 12 months from the filing deadline (which is 14 days from completion), so typically up to about 13 months after you completed.
No refund for transactions that fall through
If your purchase completes and then falls apart, SDLT is generally not refundable (you'd need to argue the transaction was void or rescinded, which requires legal advice).
Frequently asked questions
Do I pay stamp duty on a new-build property?
Yes. SDLT applies to new-builds in exactly the same way as second-hand homes. The key difference is that many developers offer to pay your SDLT as an incentive on new-build purchases. Read any such offer carefully — developers sometimes inflate the purchase price to cover it, or the incentive is capped at a fixed amount.
Do I pay stamp duty if I inherit a property?
No SDLT is due on inherited property itself. However, owning an inherited property means you are no longer a first-time buyer for SDLT purposes, and if you buy another property in future you will pay the additional-dwelling surcharge on any property you buy while you still own the inherited one.
What counts as a "linked transaction"?
HMRC can treat multiple property transactions between the same parties as "linked" — meaning the prices are added together to determine the SDLT rate band. This most commonly affects developers selling multiple plots to the same buyer, or a buyer purchasing several properties from the same seller in quick succession. Seek specialist advice if this might apply to you.
Do non-UK residents pay a higher rate?
Yes. Non-UK residents purchasing residential property in England or Northern Ireland pay a 2% SDLT surcharge on top of all applicable rates (including any second-home surcharge). This applies to individuals who have not been present in the UK for at least 183 days in the 12 months before the purchase date.
Key numbers 2026/27
- Standard nil-rate band
- £250,000
- FTB nil-rate band
- £300,000
- FTB relief up to
- £500,000
- Second home surcharge
- +5%
- Payment deadline
- 14 days
- Max FTB saving
- £8,750