Stamp Duty in 2025/2026: A Complete Guide for UK Property Buyers
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, the rules have tightened considerably — and understanding them could save you from a nasty surprise on completion day.
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. 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?
In September 2022, the then-Conservative government temporarily raised SDLT thresholds to support buyers through a difficult market. Those temporary measures ended on 31 March 2025, and thresholds reverted to their previous levels. The key changes were:
- 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%
No further changes to SDLT rates have been announced for 2026. The April 2025 rates continue to apply.
Current SDLT Rates: Standard Home Movers
If you are buying a property as your main residence and you already own (or have previously owned) another property, these are the rates that apply in England and Northern Ireland:
| 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 home for £300,000 (and already own a 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.
| 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.
| 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 your former home within 36 months of purchasing the new one, you can apply to HMRC for a full refund of the surcharge.
Non-UK Resident Surcharge
If you are not a UK tax resident at the time of purchase — 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. This applies to both standard and additional property purchases. You may be able to claim a refund if you subsequently become UK resident within two years of the purchase date.
When Is SDLT Not Payable?
SDLT does not apply in all circumstances. You will generally pay no stamp duty if:
- The property purchase price is below £125,000 (or £300,000 for eligible first-time buyers)
- 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
- Purchases under £40,000 generally carry no SDLT reporting requirement
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. An Additional Dwelling Supplement (ADS) of 8% applies to additional property purchases in Scotland.
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.
How to Pay
SDLT must be paid within 14 days of completing your property purchase in England and Northern Ireland. 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
No changes to SDLT rates have been announced for 2026. The rates introduced in April 2025 continue to apply. The government has indicated it is considering longer-term property tax reform, but no replacement or revision to SDLT has been confirmed.
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 and reflects the rules as of February 2026. Stamp duty rules can change — always check the latest rates on GOV.UK or speak to a qualified conveyancer or tax adviser.