Stamp Duty Guide 2026/27: SDLT Rates, First-Time Buyer Relief and More

Stamp Duty (SDLT) Guide 2026/27

Stamp Duty Land Tax (SDLT) is the tax paid when purchasing land or property in England and Northern Ireland. In Scotland, Land and Buildings Transaction Tax (LBTT) applies; in Wales, Land Transaction Tax (LTT). Understanding which applies — and which reliefs you qualify for — can save significant sums on one of the largest transactions of your life.

England and Northern Ireland: Standard SDLT Rates

The temporary higher thresholds that applied until March 2025 reverted to pre-2022 levels from 1 April 2025. These permanent rates continue for 2026/27:

How SDLT Is Calculated: Marginal Bands

SDLT is calculated on the portion of the purchase price falling within each band — not the headline rate on the whole amount.

Example: £400,000 standard purchase

• First £125,000 × 0% = £0
• Next £125,000 (£125,001–£250,000) × 2% = £2,500
• Remaining £150,000 (£250,001–£400,000) × 5% = £7,500
• Total SDLT: £10,000 (effective rate: 2.5%)

Example: £250,000 standard purchase

• First £125,000 × 0% = £0
• Next £125,000 × 2% = £2,500
• Total SDLT: £2,500 (effective rate: 1.0%)

First-Time Buyer Relief

First-time buyers purchasing properties up to £500,000 benefit from enhanced relief in England and Northern Ireland:

Example: First-time buyer, £320,000

• £0–£300,000 × 0% = £0
• £300,001–£320,000 × 5% = £1,000
• Total: £1,000 vs £8,500 at standard rates — saving £7,500

Example: First-time buyer, £500,000

• £0–£300,000 × 0% = £0
• £300,001–£500,000 × 5% = £10,000
• Total: £10,000 vs £18,750 standard — saving £8,750

Definition of first-time buyer: Must never have owned residential property anywhere in the world. Includes inherited property shares and gifted property. Both parties in a joint purchase must qualify — if one party has previously owned, neither gets the relief.

Additional Property Surcharge: +5%

A 5% surcharge applies on top of standard rates when purchasing an additional residential property:

Applies to: Second homes; buy-to-let property; any purchase where you already own other residential property.

Example: £300,000 buy-to-let

• £125,000 × 5% = £6,250
• £125,000 × 7% = £8,750
• £50,000 × 10% = £5,000
• Total: £20,000 vs £2,500 standard — surcharge adds £17,500

Refund on replacing main residence: If you sell your main residence within 36 months of buying the new one, you can reclaim the additional dwelling surcharge. The claim must usually be made within 12 months of the sale or the filing date, whichever is later.

Scotland: Land and Buildings Transaction Tax (LBTT)

First-time buyer relief (Scotland): 0% on first £175,000 for properties up to £175,000.

The Additional Dwelling Supplement (ADS) in Scotland is 8% — higher than England's 5% surcharge.

Wales: Land Transaction Tax (LTT)

Practical Details

When is SDLT due? Within 14 days of completion. Your solicitor files the return and collects the tax from you. Ensure funds are available before completion.

Can SDLT be added to your mortgage? No — lenders will not include SDLT in a residential mortgage. You must have the cash available.

Is SDLT deductible for buy-to-let landlords? Not against rental income. However, it is added to the acquisition cost of the property, reducing Capital Gains Tax when you eventually sell.

Multiple Dwellings Relief

When buying multiple residential properties in a single transaction (such as a portfolio purchase), SDLT is calculated on the mean price per dwelling multiplied by the number of properties, subject to a 1% minimum per dwelling floor. This can reduce SDLT significantly on portfolio acquisitions.

Frequently Asked Questions

Q: I own a property abroad — does that count for the additional property surcharge? Yes. The additional property surcharge applies if you own residential property anywhere in the world, not just in the UK.

Q: My partner owns a property — we're buying together as first-time buyers. Do we get FTB relief? No. If either party has previously owned residential property, the FTB relief is not available to either buyer on a joint purchase.

Q: I'm buying a mixed-use property (flat above a shop) — which rates apply? Non-residential SDLT rates apply to mixed-use properties, which are significantly lower: 0% to £150,000; 2% to £250,000; 5% above. This can create substantial savings where the mixed-use classification is genuine.

Q: What if I exchange contracts but don't complete within 14 days? SDLT is only triggered on completion, not exchange. The 14-day filing period runs from the completion date, not exchange.