Stamp Duty in 2025/2026: A Guide for Buyers in England and Northern Ireland
Stamp Duty Land Tax (SDLT) is one of the most significant upfront costs when buying property in England or Northern Ireland. Following changes that came into effect on 1 April 2025 (GOV.UK: SDLT residential rates), the rules have tightened considerably - and understanding them could save you from a nasty surprise on completion day. This applies to England and Northern Ireland only. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax instead, at different rates and thresholds - use your nation's calculator, not this one.
This guide explains the current rates, who pays what, and how the changes affect first-time buyers, home movers, and investors alike.
What Is Stamp Duty Land Tax?
SDLT is a tax charged by the UK government on property and land purchases in England and Northern Ireland. It is a one-off payment, due within 14 days of completion (GOV.UK: Stamp Duty Land Tax). Your solicitor or conveyancer will typically calculate, file, and pay the tax on your behalf as part of the conveyancing process.
SDLT uses a progressive band system - similar to income tax - meaning you only pay the higher rate on the portion of the purchase price that falls within each band, not on the entire price.
Note: Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT). These are separate regimes with their own rates and thresholds.
What Changed on 1 April 2025?
From 23 September 2022, SDLT thresholds were temporarily raised (Stamp Duty Land Tax (Temporary Relief) Act 2023). Those temporary measures ended on 31 March 2025, and thresholds reverted to their previous levels. The key changes were (GOV.UK: SDLT residential rates):
- The standard nil-rate threshold dropped from £250,000 back to £125,000
- The first-time buyer nil-rate threshold dropped from £425,000 back to £300,000
- The maximum property value for First-Time Buyer Relief reduced from £625,000 to £500,000
- The additional property surcharge (already increased in October 2024) remains at 5%, up from the previous 3% (GOV.UK: higher rates on additional property)
Rates can change at any fiscal event - always confirm the current position on GOV.UK before you budget.
Current SDLT Rates: Standard Home Movers
If, after buying, the property will be the only residential property you own and you are not a first-time buyer (for example, you are replacing a main home you have sold), these are the rates that apply in England and Northern Ireland (GOV.UK: SDLT residential rates):
| Purchase 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% |
Example: If you buy a £300,000 home to replace your main home (so you are not a first-time buyer and will not own another property), you pay: 0% on the first £125,000 (£0) + 2% on the next £125,000 (£2,500) + 5% on the remaining £50,000 (£2,500) = £5,000 total SDLT.
First-Time Buyer Relief
First-time buyers benefit from reduced rates, but the relief is less generous than it was before April 2025. To qualify, you must never have owned a freehold or leasehold property anywhere in the world, and you must intend to use the property as your main home (GOV.UK: first-time buyer relief).
| Purchase Price Band | SDLT Rate (First-Time Buyer) |
|---|---|
| Up to £300,000 | 0% |
| £300,001 - £500,000 | 5% |
| Over £500,000 | Standard rates apply - no relief |
Important: If the property costs more than £500,000, you cannot claim First-Time Buyer Relief at all, and the standard rates apply to the entire purchase.
Example: A first-time buyer purchasing a £400,000 home pays: 0% on the first £300,000 (£0) + 5% on the next £100,000 (£5,000) = £5,000 total SDLT. Before April 2025, the same buyer would have paid nothing.
Additional Property Surcharge (Second Homes & Buy-to-Let)
If you are buying an additional residential property - such as a second home, holiday home, or buy-to-let investment - while retaining ownership of another property, you must pay a 5% surcharge on top of the standard rates across every band (GOV.UK: higher rates on additional property). The higher rates do not apply where the property is worth less than £40,000.
| Purchase Price Band | SDLT Rate (Additional Property) |
|---|---|
| Up to £125,000 | 5% |
| £125,001 - £250,000 | 7% |
| £250,001 - £925,000 | 10% |
| £925,001 - £1,500,000 | 15% |
| Over £1,500,000 | 17% |
The 3-year refund rule: If you are buying a new main residence before you have sold your previous one, you will initially pay the additional property surcharge. However, if you sell or give away your former home within 3 years of purchasing the new one, you can apply to HMRC for a refund of the surcharge (GOV.UK: apply for a refund). Separate time limits apply to making the claim - check the current gov.uk guidance for the claim deadline that applies to your sale date.
Non-UK Resident Surcharge
If you are not UK resident for SDLT purposes - broadly, if you have spent fewer than 183 days in the UK in the 12 months before buying - you will pay an additional 2% surcharge on top of the applicable SDLT rates (GOV.UK: SDLT residential rates). This applies to both standard and additional property purchases. In some circumstances you may be able to claim a refund if you later meet the UK residence test - check the current rules and time limits on GOV.UK or with your conveyancer.
When Is SDLT Not Payable?
SDLT does not apply in all circumstances. You will generally pay no stamp duty if (GOV.UK: Stamp Duty Land Tax):
- The property purchase price is below £125,000 (or £300,000 for eligible first-time buyers) - unless the 5% higher rates for an additional property apply, which can start from £40,000, or the 2% non-UK resident surcharge applies
- The property is transferred as part of a divorce or dissolution of civil partnership
- You inherit a property through a will (no money changes hands)
- The property is transferred as a gift with no outstanding mortgage - unless it goes to a company connected with you (for example one you control), which pays SDLT on at least the property's market value, with limited exceptions (Finance Act 2003, section 53)
- Freehold purchases under £40,000 do not need an SDLT return (leases have their own limits - see GOV.UK: transactions that don't need a return)
Scotland and Wales: Different Rules Apply
If you are buying in Scotland, you pay Land and Buildings Transaction Tax (LBTT). The nil-rate threshold is £145,000, rising to £175,000 for first-time buyers (Revenue Scotland: LBTT residential). An Additional Dwelling Supplement (ADS) of 8% applies to additional property purchases in Scotland for contracts entered into on or after 5 December 2024 (Revenue Scotland: ADS).
In Wales, buyers pay Land Transaction Tax (LTT) with its own thresholds and bands, separate from the SDLT system in England. The Welsh Government sets these rates independently - check the current LTT rates on the Welsh Government website.
How to Pay
SDLT must be paid within 14 days of completing your property purchase in England and Northern Ireland (GOV.UK: Stamp Duty Land Tax). In practice, your solicitor or licensed conveyancer handles this for you - they will calculate the amount due, file the SDLT return with HMRC, and make the payment from your completion funds. Failure to pay on time can result in penalties and interest charges from HMRC.
Looking Ahead
SDLT rates can be revised at any Budget or fiscal event, and the government has indicated it is considering longer-term property tax reform. Before you commit to a purchase, confirm the rates that apply on the day of completion via GOV.UK.
Buyers are advised to budget carefully and use an SDLT calculator to understand their liability before committing to a purchase. Your conveyancer will be able to confirm the exact amount payable based on your specific circumstances.
This guide is for general information only. Stamp duty rules can change - always check the latest rates on GOV.UK or speak to a qualified conveyancer or tax adviser.
Last reviewed: 22 October 2026. This is general information, not financial or legal advice - always check the current gov.uk guidance.