The Complete Guide to UK Stamp Duty Land Tax (2026)
Stamp Duty Land Tax (SDLT) is a tax you pay when buying property or land in England and Northern Ireland above a certain price threshold. It's one of the most significant upfront costs of buying a home — yet many buyers don't fully understand how it works until they're deep into the process.
This guide explains everything you need to know about SDLT in 2026: how it's calculated, who pays what, and how to legitimately reduce your bill.
How Stamp Duty Works: The Band System
SDLT works on a tiered band system — similar to income tax. You pay different rates on different portions of the property price, not a flat rate on the whole amount. This is a crucial distinction that many people misunderstand.
| Band (Standard Buyers) | Rate |
|---|---|
| £0 – £250,000 | 0% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
First-Time Buyer Relief
If you're buying your first home, you benefit from enhanced stamp duty thresholds:
- £0 – £425,000: 0% (no stamp duty)
- £425,001 – £625,000: 5% on the amount above £425,000
- Above £625,000: Standard rates apply (no FTB relief)
This means a first-time buyer purchasing at £425,000 or below pays zero stamp duty — a saving of up to £8,750 compared to standard rates.
Additional Property Surcharge (Second Homes & Buy-to-Let)
Since October 2024, buyers purchasing additional residential properties (second homes, buy-to-let, holiday homes) pay an extra 5% surcharge on top of the standard rates. This increased from the previous 3% surcharge.
| Band (Additional Property) | Rate |
|---|---|
| £0 – £250,000 | 5% |
| £250,001 – £925,000 | 10% |
| £925,001 – £1,500,000 | 15% |
| Over £1,500,000 | 17% |
Non-UK Resident Surcharge
Non-UK residents purchasing property in England and Northern Ireland pay an additional 2% surcharge on top of all other applicable rates. This can stack with the additional property surcharge, meaning a non-resident buying a second home could pay up to 7% more than a standard buyer.
Scotland (LBTT) and Wales (LTT)
Stamp Duty Land Tax only applies in England and Northern Ireland. Scotland and Wales have their own property transaction taxes with different rate structures:
Scotland — Land and Buildings Transaction Tax (LBTT)
| Band | Rate |
|---|---|
| £0 – £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Over £750,000 | 12% |
Scottish first-time buyers get relief on the first £175,000 of properties up to £325,000.
Wales — Land Transaction Tax (LTT)
| Band | Rate |
|---|---|
| £0 – £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 currently offer first-time buyer relief for LTT.
How to Reduce Your Stamp Duty Bill
- Negotiate the price down — Even £1,000 off can reduce SDLT if you cross a threshold
- Move fixtures separately — Fixtures, fittings, and furniture can be excluded from the purchase price (with agreement from your conveyancer and the seller)
- Claim first-time buyer relief — Ensure your solicitor applies FTB rates if eligible
- Multiple dwellings relief — If buying a property with an annexe, you may qualify
- Shared ownership — You can choose to pay SDLT on just your initial share
When Do You Pay Stamp Duty?
SDLT must be paid within 14 days of completion. Your solicitor or conveyancer will typically handle this for you, filing the return with HMRC and paying the tax from the completion funds. Failing to submit on time can result in penalties and interest charges.