Stamp Duty Explained UK 2026

Everything you need to know about UK stamp duty — SDLT, LBTT and LTT — including the April 2025 changes, first-time buyer relief and buy-to-let surcharge. Clear, jargon-free.

📅 Updated April 2025 ✅ HMRC verified 🏴󠁧󠁢󠁥󠁮󠁧󠁿🏴󠁧󠁢󠁳󠁣󠁴󠁿🏴󠁧󠁢󠁷󠁬󠁳󠁿 All UK jurisdictions

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What Is Stamp Duty?

Stamp duty is a tax you pay when you buy a property. The name varies by UK nation:

  • England & Northern Ireland: Stamp Duty Land Tax (SDLT) — collected by HMRC
  • Scotland: Land and Buildings Transaction Tax (LBTT) — collected by Revenue Scotland
  • Wales: Land Transaction Tax (LTT) — collected by the Welsh Revenue Authority

All three work on the same principle: a progressive tax applied to different portions of the purchase price. You don't pay one flat rate — each portion of the price falling within a band is taxed at that band's rate.

England & Northern Ireland: SDLT Rates 2025/26

The standard residential SDLT rates from 1 April 2025:

Property PriceStandard RateFirst-Time BuyerBTL / 2nd Home
Up to £125,0000%0%5%
£125,001 – £250,0002%0%7%
£250,001 – £300,0005%0%10%
£300,001 – £500,0005%5%10%
£500,001 – £925,0005%Standard rates*10%
£925,001 – £1,500,00010%10%15%
Over £1,500,00012%12%17%

*First-time buyer relief is lost entirely for properties over £500,000 — standard rates apply with no relief.

SDLT Worked Example — £350,000 Standard Purchase

  • 0% on first £125,000 = £0
  • 2% on £125,001–£250,000 (£125,000) = £2,500
  • 5% on £250,001–£350,000 (£100,000) = £5,000
  • Total SDLT: £7,500 (effective rate: 2.14%)
⚠️ April 2025: What Changed
  • Standard nil-rate band: £250,000 → £125,000 (COVID relief ended)
  • First-time buyer nil-rate: £425,000 → £300,000
  • First-time buyer upper limit: £625,000 → £500,000
  • BTL/second home surcharge: 3% → 5% (raised October 2024 Budget)

Scotland: LBTT Rates 2025/26

Property PriceStandard RateFirst-Time BuyerAdditional Dwelling (ADS)
Up to £145,0000%0%+8%
£145,001 – £250,0002%0% (up to £175k)+8%
£250,001 – £325,0005%5%+8%
£325,001 – £750,00010%10%+8%
Over £750,00012%12%+8%

Scotland's Additional Dwelling Supplement (ADS) is 8% — the highest BTL surcharge in the UK. First-time buyers can claim relief on the portion up to £175,000.

Wales: LTT Rates 2025/26

Property PriceStandard RateHigher Rate (BTL)
Up to £225,0000%4%
£225,001 – £400,0006%10%
£400,001 – £750,0007.5%11.5%
£750,001 – £1,500,00010%14%
Over £1,500,00012%16%

Wales has no first-time buyer relief for LTT. The nil-rate band is the highest in the UK at £225,000.

Buy-to-Let Stamp Duty: The 5% Surcharge

From 31 October 2024, anyone buying a buy-to-let property or second home in England and Northern Ireland pays an additional 5% on top of standard SDLT rates on every band. This was raised from 3% as part of the Autumn Budget.

Example: £300,000 BTL purchase in England
Standard SDLT: £5,000 + BTL surcharge (5% of £300,000): £15,000 = £20,000 total

If you are replacing your main residence (selling your old home within 3 years of buying the new one), you may be exempt from the surcharge or eligible for a refund.

FAQs

When did stamp duty rates last change?+
The temporary COVID-era thresholds ended on 1 April 2025. The nil-rate band for standard buyers reverted from £250,000 to £125,000, and first-time buyer relief reduced from £425,000 to £300,000. The BTL surcharge was also raised from 3% to 5% in the October 2024 Autumn Budget.
Do first-time buyers pay stamp duty?+
First-time buyers in England pay 0% on the first £300,000 and 5% on the portion between £300,001 and £500,000. Properties over £500,000 attract standard rates with no first-time buyer relief. In Scotland, first-time buyer relief applies up to £175,000 through the LBTT first-time buyer relief.
How do I pay stamp duty?+
You must pay SDLT within 14 days of completing your property purchase. Your solicitor or conveyancer normally handles the filing and payment on your behalf, adding the stamp duty to their completion statement. In Scotland, LBTT returns must be filed within 30 days of the effective date.
Can I get a stamp duty refund?+
Yes, in certain circumstances. If you bought a second property and paid the 5% surcharge, but sold your previous main residence within 3 years, you can apply for a refund from HMRC. You have 12 months from the sale of your previous home to claim. Applications must be made via HMRC's online portal.
Do limited companies pay stamp duty?+
Yes. Limited companies purchasing residential property pay the 5% additional rate surcharge on top of standard SDLT rates for all purchases, regardless of whether it is their first property. However, companies may benefit from different tax treatment on rental income and mortgage interest compared to individual landlords under Section 24.

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⚠️ This guide is for informational purposes only. Verify all stamp duty figures with HMRC or your solicitor before completing a purchase. Rates correct as of May 2026.