Understanding stamp duty in the UK:
rates, reliefs, and worked examples

Stamp Duty Land Tax (SDLT) is one of the largest upfront costs of buying property in England and Northern Ireland — often tens of thousands of pounds, yet frequently misunderstood until completion day. The rates changed significantly in April 2025 when temporary thresholds expired, and there's now a patchwork of different rates depending on whether you're a first-time buyer, a home mover, or purchasing a second property.

This guide covers everything you need to know about SDLT in 2026: the current rates, the reliefs available, worked examples for common scenarios, and the deadlines and processes that apply.

What is Stamp Duty Land Tax?

SDLT is a tax payable to HMRC when you buy a property or land in England or Northern Ireland above certain thresholds. It applies to both freehold and leasehold purchases, and to cash and mortgaged purchases alike. It is not charged on the full purchase price — it's a tiered system where different rates apply to different portions of the price.

SDLT is calculated by applying each rate to the portion of the purchase price that falls within that band. It's the same structure as income tax bands — you only pay the higher rate on the portion above each threshold.

Standard residential SDLT rates in 2026

These rates apply to standard residential purchases by buyers who already own property, or who do not qualify for first-time buyer relief:

Purchase price	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%

First-time buyer SDLT relief in 2026

First-time buyers benefit from SDLT relief on purchases up to £500,000. The relief is only available if you have never previously owned a residential property anywhere in the world — it doesn't matter whether the previous property was in the UK or overseas.

The temporary relief introduced in September 2022 (nil rate up to £425,000) expired on 31 March 2025. From 1 April 2025, first-time buyer rates reverted to:

Purchase price	First-time buyer SDLT rate
Up to £300,000	0%
£300,001 to £500,000	5%
Above £500,000	Standard rates apply — no relief

Second homes and buy-to-let: the additional dwellings surcharge

If you're purchasing an additional residential property — a second home, a buy-to-let, or a holiday home — you pay standard SDLT rates plus a 5 percentage point surcharge on every band. This surcharge was raised from 3% to 5% on 31 October 2024.

Purchase price	SDLT rate (additional property)
Up to £125,000	5%
£125,001 to £250,000	7%
£250,001 to £925,000	10%
£925,001 to £1,500,000	15%
Above £1,500,000	17%

The surcharge applies even if the additional property is a lower value than your main residence. There is a relief available if you sell your main residence within 3 years of purchasing the additional property — you can reclaim the surcharge element.

When the surcharge doesn't apply

The surcharge does not apply if you're replacing your main residence on the same day as the purchase. If there's an overlap — you buy your new home before you've sold your old one — the surcharge applies at completion, but you can apply for a refund once the old property sells, as long as it sells within 3 years.

Non-UK residents: the 2% surcharge

Non-UK residents purchasing residential property in England and Northern Ireland pay an additional 2% surcharge on top of all standard and additional property rates. This applies regardless of whether you're a first-time buyer. The surcharge is applied to the entire purchase price.

You are considered a UK resident for SDLT purposes if you have been present in the UK for at least 183 days in the 12-month period ending on the effective date of the transaction. Residency for SDLT is not the same as residency for income tax or immigration purposes.

How SDLT works on leasehold properties

Leasehold purchases have an additional SDLT consideration: if you're buying a new lease (i.e., a lease granted by the landlord rather than an existing lease being assigned), SDLT may also be payable on the rental element — specifically on the "net present value" (NPV) of rent over the lease term.

For most leasehold flat purchases (where you're buying an existing lease from the current leaseholder), this doesn't apply — SDLT is simply calculated on the purchase price in the normal way. It's relevant primarily for new-build leasehold properties with long original lease terms.

When do you pay SDLT?

SDLT is due within 14 days of completion. Your solicitor or conveyancer will handle the SDLT return and payment to HMRC as part of the completion process. They'll request the SDLT funds from you before completion, along with the balance of the purchase price.

If you miss the 14-day deadline, HMRC will charge interest on the unpaid amount and may issue a penalty. There is no facility to pay SDLT in instalments on a standard residential purchase.

SDLT reliefs and exemptions to know about

Multiple dwellings relief — abolished from June 2024

Multiple dwellings relief (MDR) — which allowed buyers of two or more properties in a single transaction to average the price and pay SDLT at a lower effective rate — was abolished from 1 June 2024. If you're purchasing a block of flats or multiple units together, take advice from a specialist SDLT solicitor.

Mixed use (commercial) rates

If you're purchasing a property with a genuine commercial element — a flat above a shop where you'll operate the business, for example — you may be able to claim mixed use relief, which applies lower commercial SDLT rates rather than residential rates. This is an area where HMRC scrutinises claims carefully, and specialist advice is essential.

Compulsory purchase, charities, and inherited property

There are additional exemptions and reliefs for compulsory purchase, charitable acquisitions, and properties inherited under a will. These are relatively niche and should be discussed with your solicitor if potentially relevant.

Frequently asked questions