Whether you are buying your first home, moving up the ladder, or investing in a second property, understanding the current stamp duty rules is essential before you make an offer on a property.
In this guide, our residential property team explains how Stamp Duty Land Tax (SDLT) works in 2026, who pays what, and how to plan your purchase to avoid costly surprises.
What Is Stamp Duty Land Tax?
Stamp Duty Land Tax is a government tax payable on the purchase of property or land in England and Northern Ireland. It must be paid within 14 days of completion and is calculated as a percentage of the purchase price on a sliding scale — meaning you pay different rates on different portions of the price, not a flat rate on the total.
The 2025 Threshold Reset: Why Buyers Are Paying More in 2026
The most important thing to understand about stamp duty in 2026 is that the thresholds changed significantly on 1 April 2025. The temporary reliefs introduced during the pandemic-era market were removed, and thresholds reverted to pre-2022 levels. If you are purchasing now, you are working under those updated rules.
Property Value Band SDLT Rate (Main Residence)
Up to £125,000 0%
£125,001 – £250,000 2%
£250,001 – £925,000 5%
£925,001 – £1,500,000 10%
Above £1,500,000 12%
In practical terms, this means that buyers are now paying tax from £125,001. On a £300,000 purchase, for example, the SDLT bill is now £5,000, based on the assumption of having owned another property before, being a UK resident and buying as an individual ( that is not a limited company ) and not an additional property.
First-Time Buyers in 2026
First-time buyers receive relief, but the terms are tighter than they were. Here is how the relief works currently:
Property Value First-Time Buyer Rate
Up to £300,000 0% (full relief)
£300,001 – £500,000 5% on the amount above £300,000
Above £500,000 No first-time buyer relief — standard rates apply
The maximum relief cap of £500,000 is an important ceiling.
If you are a first-time buyer purchasing a property at £520,000, you receive no relief at all and pay the standard residential rates in full. In many parts of England — particularly London and the South East — this cap means a large number of first-time buyers no longer benefit from the scheme.
⚠️ Relief only applies where you have never owned a residential property anywhere in the world. Even a small inherited share of a property can disqualify you. Always confirm your eligibility with a solicitor before proceeding.
Second Homes and Buy-to-Let Properties
Buyers purchasing additional residential properties face a significant surcharge on top of standard rates. The surcharge was increased from 3% to 5% in October 2024, making buy-to-let purchases and second homes considerably more expensive to acquire.
Property Value 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%
Above £1,500,000 17%
Overseas buyers face a further additional 2% surcharge on top of these rates. With rates now potentially reaching 17% on high-value additional properties, the total SDLT liability on a premium buy-to-let purchase can be substantial — and must be factored into any investment business case.
Shared Ownership and New Build Properties
SDLT on shared ownership properties can be paid in one of two ways: either on the full market value of the property at the time of purchase, or in stages as additional shares are acquired (known as “staircasing”). Our conveyancing team can advise which approach is more cost-effective in your particular circumstances.
For new build properties purchased off-plan, care must be taken with the timing of completion and the interaction between purchase price and any incentives offered by the developer, which can affect how SDLT is calculated.
How Our Property Team Can Help
Stamp duty is not simply a calculation — the rules around second homes, company purchases, mixed-use properties, multiple dwellings, and first-time buyer relief involve genuine legal complexity. Getting the classification wrong can be costly, and HMRC can open an enquiry into an SDLT return years after completion.
Our residential property solicitors review your specific circumstances as part of every conveyancing matter, confirm the correct SDLT position before exchange, and ensure your return is filed accurately within the 14-day deadline after completion.
