Stamp Duty in 2026: thresholds, reliefs, and how to calculate yours

Stamp Duty Land Tax (SDLT) is the government tax on residential property purchases in England and Northern Ireland. Wales has its own version called Land Transaction Tax (LTT) and Scotland has Land and Buildings Transaction Tax (LBTT). The structure is broadly similar across all three but the bands and rates differ. This guide focuses on SDLT in England and Northern Ireland in 2026, explains the bands clearly, walks through first time buyer relief, the additional property surcharge, and the non UK resident surcharge, and shows how to calculate exactly what you will pay.

How Stamp Duty in 2026 actually works. SDLT is a tiered tax. You do not pay one rate on the whole purchase price. Each portion of the price falls into a band and is taxed at that band's rate. The total bill is the sum of the tax across the bands. This matters because people often hear "five percent SDLT" and assume that means five percent of the whole price. It does not. Only the portion of the price within the five percent band is taxed at five percent. The portion below is taxed at the lower bands.

The standard residential SDLT bands in 2026. For a single residential property purchase by a UK resident replacing their main residence, the bands are:

• •£0 to £125,000: 0 percent
• •£125,001 to £250,000: 2 percent
• •£250,001 to £925,000: 5 percent
• •£925,001 to £1,500,000: 10 percent
• •Above £1,500,000: 12 percent

A worked example on a £400,000 standard residential purchase: - £0 to £125,000: £0 - £125,001 to £250,000: £2,500 (2 percent of £125,000) - £250,001 to £400,000: £7,500 (5 percent of £150,000) - Total SDLT: £10,000

A worked example on a £750,000 standard residential purchase: - £0 to £125,000: £0 - £125,001 to £250,000: £2,500 - £250,001 to £750,000: £25,000 (5 percent of £500,000) - Total SDLT: £27,500

First time buyer relief in 2026. First time buyers in England and Northern Ireland get a special set of bands. The relief means:

• •£0 to £300,000: 0 percent
• •£300,001 to £500,000: 5 percent on the portion above £300,000

A first time buyer at £400,000 pays £5,000 (5 percent of £100,000). The same purchase by a non first time buyer pays £10,000. The relief saves £5,000.

The catch in first time buyer relief. First time buyer relief disappears entirely above £500,000. If the property costs more than £500,000, the standard bands apply. This creates a cliff. At £500,000 the first time buyer pays £10,000. At £500,001 the buyer pays £15,000. The £1 over £500,000 costs £5,000 in lost relief. Always check whether you can negotiate the price down to the £500,000 threshold, or up to a level where the additional value is worth more than the lost relief.

Who counts as a first time buyer? You qualify if: - You and every other person buying have never owned a freehold or leasehold interest in any residential property anywhere in the world - You intend to live in the property as your main residence - The property costs no more than £500,000

The first condition is strict. Inheriting a share of a property counts as ownership, even if you sold the share long ago. Buying jointly with a partner who has ever owned property disqualifies the joint purchase. If your partner owned a property in another country years before you met, you do not qualify for joint first time buyer relief.

Shared ownership purchases have their own rules. You can elect to pay SDLT on the full market value at purchase, or on just the share you are buying, with future staircasing triggering further SDLT. The election is irreversible. Your conveyancing solicitor will advise based on the specific scheme.

The additional property SDLT surcharge. If you are buying any residential property and you already own another, you usually pay a five percent surcharge on top of every band. This is the same five percent at every level, not a tier. The surcharge applies when you own any other residential property anywhere in the world at the moment of completion, whether freehold or leasehold, and whether or not you live in it.

The bands with the additional property surcharge are: - £0 to £125,000: 5 percent - £125,001 to £250,000: 7 percent - £250,001 to £925,000: 10 percent - £925,001 to £1,500,000: 15 percent - Above £1,500,000: 17 percent

A £400,000 additional property purchase pays £30,000 in SDLT, compared with £10,000 if it were the buyer's only property.

When the surcharge applies and when it does not. The surcharge catches: - Second homes and holiday homes - Buy to let investments - Properties bought as gifts or to help family - Joint purchases where any party owns another residential property - People who are moving home but have not yet sold their previous main residence

The last point is the one that catches people unexpectedly. If you complete on your new home before you have sold your old one, you pay the surcharge on the new purchase. You can claim a refund if you sell the old home within three years. We cover the refund process below.

The refund route for moving home. If you have paid the surcharge because you completed on your new home before selling your old one, you can reclaim the surcharge when you sell the old home, provided: - The old property was your main residence at some point in the three years before the new purchase completed - You sell the old property within three years of completing on the new one - You claim within twelve months of selling the old property, or within twelve months of filing your original SDLT return, whichever is later

The refund is claimed through HMRC's online form. Your conveyancing solicitor can file it for you, or you can file yourself. Refunds typically take four to eight weeks to process.

The non UK resident SDLT surcharge. Non UK residents pay a further two percent surcharge on top of all the relevant bands. This applies even if you are buying as a first time buyer or replacing your main residence, although in practice non UK residents rarely qualify for first time buyer relief because of residence requirements on the property. Whether you count as a UK resident for SDLT is a technical question. You can be UK resident for SDLT even if you are not UK resident for income tax. The test relates to days spent in the UK in the year before completion. Your conveyancing solicitor will check.

A worked example combining the surcharges. A non UK resident buying a second home in London for £600,000: - Standard rate £0 to £125,000: 0 percent = £0 - Standard rate £125,001 to £250,000: 2 percent = £2,500 - Standard rate £250,001 to £600,000: 5 percent = £17,500 - Additional property surcharge: 5 percent of £600,000 = £30,000 - Non UK resident surcharge: 2 percent of £600,000 = £12,000 - Total SDLT: £62,000

The same property bought by a UK resident first time buyer would attract £20,000 in SDLT (£500,000 limit exceeded so first time buyer relief does not apply, standard bands instead). The difference between the worst case and the best case on a single property is over £42,000.

Timing the transaction to reduce SDLT. A few legitimate timing strategies can reduce the SDLT bill:

• •Sell your existing main residence before completing on the new one to avoid the additional property surcharge entirely. If both are happening on the same day, your conveyancing solicitor will sequence them so the sale completes before the purchase.
• •Negotiate the price toward an SDLT band boundary. £499,950 saves a first time buyer thousands compared with £505,000.
• •Consider whether fixtures and fittings can be valued separately. Genuine moveables like white goods, curtains, and freestanding furniture are not subject to SDLT. The valuation has to be honest and supportable. HMRC scrutinises overstated chattels valuations.
• •For mixed use properties where part is residential and part is commercial, mixed use SDLT rates apply, which are lower than residential rates in some bands. The test is whether a genuine commercial use exists.

Wales (LTT) and Scotland (LBTT) in brief. Wales applies LTT to residential property in Wales. The bands and reliefs differ from England. The starting threshold is higher (£225,000 for the standard band) but there is no first time buyer relief in Wales. Scotland applies LBTT, with a similar tiered structure and a first time buyer relief up to £175,000.

When SDLT has to be paid. SDLT is due to HMRC within fourteen days of completion. Your conveyancing solicitor files the SDLT return and arranges payment from your completion funds. You do not pay anything to your solicitor for SDLT itself. The money goes directly to HMRC.

SDLT comes out of your cash, not your mortgage. A practical point that catches first time buyers. Most mortgage lenders will not include SDLT in the loan amount. You need to have the SDLT amount saved in addition to your deposit and legal fees. On a £400,000 purchase, this means having £40,000 deposit, £1,500 to £2,500 legal fees, £350 to £550 disbursements, and the relevant SDLT figure all ready in cash at completion. For a non first time buyer that adds another £10,000. Plan accordingly.

Filing the SDLT return. Your conveyancing solicitor files Form SDLT1 with HMRC through the online filing system. The form captures the parties, the property, the consideration, any relief claimed, and any surcharges. You receive a certificate confirming filing, which Land Registry then requires before registering your title. The whole process happens automatically through your solicitor.

Common SDLT gotchas. Things we see catch buyers out:

• •Inheriting a small share of a property years ago. Even a small inherited share counts as ownership for the additional property surcharge.
• •Owning property abroad. Foreign property counts. A flat in Dubai or a holiday home in Spain triggers the surcharge.
• •Buying with a partner who has owned before. The joint purchase loses first time buyer relief.
• •Mixed transactions where land and chattels are bundled. The chattels element must be properly valued.
• •Help to Buy redemption. When you buy out the government equity loan, no further SDLT is payable on that portion.
• •New builds with incentive packages. The SDLT is on the purchase price agreed, not the headline list price after incentives.

The Home Panel approach to Stamp Duty. Our quote calculator runs your figures the moment you tell us about the property. We show standard SDLT, first time buyer relief if you qualify, additional property surcharge if you have not yet sold your existing home, and the non UK resident surcharge if it applies. The quote is updated in real time as you change the inputs. The actual return is filed by your panel firm after completion with no additional fee. You pay HMRC the money owed and nothing to your solicitor for the filing.

The short answer on Stamp Duty in 2026. Standard rates start at zero up to £125,000, with 2, 5, 10, and 12 percent bands above. First time buyers get a meaningful relief up to £500,000. Additional properties attract a five percent surcharge on every band. Non UK residents pay a further two percent. The tax is filed and paid within fourteen days of completion through your conveyancing solicitor. Plan your cash position with SDLT included, time your transactions carefully if you can, and claim refunds promptly if you pay the surcharge while waiting to sell.