For the full first-time buyer roadmap and affordability framework, see the UK First-Time Buyers hub.
Stamp Duty Land Tax (SDLT) is one of the biggest upfront costs when buying property in England and Northern Ireland. Here’s how much you’ll pay.
Stamp Duty Rates 2026 (England & Northern Ireland)
Standard Rates (Residential Property)
| 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 at each rate on the portion of the purchase price within that band (similar to income tax brackets — not on the entire price).
Example Calculations
| Purchase Price | SDLT Calculation | Total SDLT |
|---|---|---|
| £200,000 | £0 + (£75,000 × 2%) | £1,500 |
| £300,000 | £0 + (£125,000 × 2%) + (£50,000 × 5%) | £5,000 |
| £450,000 | £0 + (£125,000 × 2%) + (£200,000 × 5%) | £12,500 |
| £600,000 | £0 + (£125,000 × 2%) + (£350,000 × 5%) | £20,000 |
| £1,000,000 | £0 + (£125,000 × 2%) + (£675,000 × 5%) + (£75,000 × 10%) | £43,750 |
First-Time Buyer Relief
First-time buyers receive a Stamp Duty discount:
| Property Price | First-Time Buyer Rate | Standard Rate |
|---|---|---|
| Up to £300,000 | 0% | 0% on first £125K, 2% on rest |
| £300,001–£500,000 | 0% on first £300K, 5% on remainder | Standard rates |
| Over £500,000 | No relief — standard rates apply | Standard rates |
First-Time Buyer Examples
| Purchase Price | SDLT (First-Time Buyer) | SDLT (Standard) | Savings |
|---|---|---|---|
| £250,000 | £0 | £2,500 | £2,500 |
| £300,000 | £0 | £5,000 | £5,000 |
| £400,000 | £5,000 | £10,000 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
| £550,000 | £17,500 (no relief) | £17,500 | £0 |
To qualify as a first-time buyer:
- You must never have owned or had an interest in a residential property
- This applies anywhere in the world, not just the UK
- Both buyers in a joint purchase must be first-time buyers
Additional Property Surcharge
Buying a second home, buy-to-let, or additional property incurs a 5% surcharge on top of standard rates:
| Property Price Band | Standard Rate | Additional Property Rate |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001–£250,000 | 2% | 7% |
| £250,001–£925,000 | 5% | 10% |
| £925,001–£1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
Additional Property Examples
| Purchase Price | Standard SDLT | Additional Property SDLT | Extra Cost |
|---|---|---|---|
| £200,000 | £1,500 | £11,500 | +£10,000 |
| £300,000 | £5,000 | £20,000 | +£15,000 |
| £500,000 | £15,000 | £40,000 | +£25,000 |
For buy-to-let calculations, see our buy-to-let mortgage calculator.
Non-UK Resident Surcharge
Non-UK residents pay an additional 2% surcharge on top of all other applicable rates:
| Buyer Type | £300,000 Property SDLT |
|---|---|
| UK resident, first-time buyer | £0 |
| UK resident, standard | £5,000 |
| UK resident, additional property | £20,000 |
| Non-UK resident, standard | £11,000 |
| Non-UK resident, additional | £26,000 |
Stamp Duty in Scotland and Wales
Scotland and Wales have their own property transaction taxes:
Scotland: Land and Buildings Transaction Tax (LBTT)
| Purchase 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% |
First-time buyers: £0 on properties up to £175,000.
Wales: Land Transaction Tax (LTT)
| Purchase Price Band | LTT Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001–£400,000 | 6% |
| £400,001–£750,000 | 7.5% |
| £750,001–£1,500,000 | 10% |
| Over £1,500,000 | 12% |
Wales does not offer first-time buyer relief.
When Is Stamp Duty Due?
| Event | Deadline |
|---|---|
| Payment due | Within 14 days of completion |
| Filing return | Within 14 days of completion |
| How to pay | Usually handled by your solicitor |
| Late filing penalty | £100 (plus interest on unpaid tax) |
Stamp Duty vs. Other Purchase Costs
| Cost | Typical Amount (£300K property) |
|---|---|
| Stamp Duty | £5,000 (£0 if first-time buyer) |
| Solicitor/conveyancer fees | £1,000–£2,000 |
| Survey/valuation | £300–£1,000 |
| Mortgage arrangement fee | £0–£2,000 |
| Removal costs | £500–£1,500 |
| Total purchase costs | £7,000–£12,000 |
Budgeting for All Upfront Purchase Costs
Stamp Duty is often the single largest upfront cost outside the deposit, but it is not the only one. Many buyers — particularly first-time buyers — underestimate total cash needed to complete.
Worked example — £350,000 first-time buyer purchase in England:
| Cost | Amount |
|---|---|
| Deposit (10%) | £35,000 |
| Stamp Duty (first-time buyer) | £2,500 (5% on £50K above £300K) |
| Solicitor/conveyancer fees | £1,200–£1,800 |
| Mortgage arrangement fee | £0–£2,000 |
| HomeBuyer’s Survey | £400–£700 |
| Removal costs | £600–£1,200 |
| Total cash needed | £39,700–£43,200 |
At a £250,000 purchase price, a first-time buyer pays £0 SDLT and needs approximately £27,000–£29,000 total (deposit plus costs). Always budget for at least £5,000–£8,000 over and above the deposit, regardless of your buyer status.
SDLT Reclaims: When You Can Get Stamp Duty Back
SDLT is not always the final word — in several situations you may be entitled to a refund from HMRC:
Additional dwelling surcharge refund: If you purchased a new home and paid the 5% surcharge because you had not yet sold your previous main residence, but then sold it within 3 years, you can claim a full refund of the surcharge. The refund window is 12 months after selling the previous property, or 12 months after filing the original SDLT return — whichever is later. This is one of the most valuable and most commonly missed SDLT refunds, worth up to £25,000 on a £500,000 purchase.
How to apply: SDLT refund claims are made using the HMRC online service or via form SDLT-Repayment, typically submitted by your conveyancing solicitor. The general deadline for amending an SDLT return is 12 months from the original filing date; longer periods apply in specific circumstances.
Uninhabitable property: HMRC accepts that a property which is genuinely uninhabitable at the point of purchase — no working kitchen, no bathroom, no heating, or significant structural damage — does not qualify as a “dwelling” under SDLT rules. Non-residential rates apply instead, which can save thousands. On a £300,000 purchase, non-residential rates result in £5,000 less SDLT than residential rates. Solicitors sometimes overlook this relief; if the property requires major renovation, ask explicitly whether it qualifies.
Stamp Duty for Second Home Buyers and Investors
The 5% additional dwelling surcharge introduced in 2016 makes SDLT significantly more expensive for buy-to-let investors and second home buyers:
Key rule: The surcharge applies if, at the end of the day of completion, you own two or more residential properties. Owning a property abroad counts — even if it has minimal value.
Exceptions to the surcharge:
- You are replacing your main residence (sold within 3 years of buying, or buying within 3 years of an involuntary sale)
- The property costs £40,000 or less
- The property is a houseboat, caravan, or mobile home
Companies buying residential property always pay the surcharge — there is no main residence exception for companies. Properties worth over £500,000 bought by a company are also subject to the Annual Tax on Enveloped Dwellings (ATED), an annual charge ranging from £4,400 to over £244,750 depending on value. For most individuals building a buy-to-let portfolio, holding properties personally rather than in a company avoids both the ATED and the additional legal/accounting complexity, unless the portfolio is large and a specialist tax adviser confirms a company structure is beneficial.
Common SDLT Mistakes to Avoid
Assuming first-time buyer status incorrectly: You must never have owned any interest in any residential property, anywhere in the world. This disqualifies people who inherited a share of a parent’s estate (even briefly), owned property abroad, or held a property in trust. Both buyers in a joint purchase must qualify — if one buyer is not a first-time buyer, neither gets the relief.
Missing the 14-day deadline: SDLT must be paid and a return filed within 14 days of completion. Late filing incurs a £100 penalty immediately, rising to £200 after 3 months, plus interest on the unpaid amount at 6.5% per year. Your solicitor should handle this automatically — confirm it has been done.
Not checking for uninhabitable property relief: If the property you are buying requires substantial renovation, explicitly ask your solicitor whether non-residential SDLT rates apply. This is a legitimate and legal relief that is frequently missed.
Forgetting the chain surcharge risk: If you complete on your new home before selling your previous one, you must pay the 5% surcharge on the day of completion. You can reclaim it in full once you sell, but you must have the cash available at completion. Factor this into your exchange and completion planning.
Stamp Duty in Context: Scotland and Wales
England and Northern Ireland use SDLT. Scotland and Wales have separate systems with different rates and thresholds. If you are buying in Scotland, the applicable tax is Land and Buildings Transaction Tax (LBTT); in Wales it is Land Transaction Tax (LTT). Both are administered by separate tax authorities. The rates shown throughout this article apply to purchases in England and Northern Ireland only.
Key Takeaways
- First-time buyers pay no SDLT on properties up to £300,000 — a saving of up to £5,000
- SDLT is progressive — you only pay the higher rate on the portion above each threshold
- Buy-to-let and second homes attract a 5% surcharge, making the tax significantly more expensive
- Budget 1-5% of the property price for Stamp Duty, depending on price and buyer status
- Scotland and Wales have their own systems with different rates and thresholds
Sources
- HM Revenue and Customs. “Stamp Duty Land Tax.” gov.uk/stamp-duty-land-tax
- HM Revenue and Customs. “SDLT: Reliefs and Exemptions.” gov.uk/guidance/sdlt-reliefs-and-exemptions
- HM Revenue and Customs. “SDLT: First-Time Buyers Relief.” gov.uk/guidance/sdlt-first-time-buyers-relief
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