Stamp Duty UK Guide 2025-26

For England and Northern Ireland (2025-26): SDLT is charged at 0% on the first £125,000, 2% on £125,001 to £250,000, 5% on £250,001 to £925,000, 10% on £925,001 to £1.5 million, and 12% above £1.5 million. First-time buyers get relief: 0% up to £300,000, 5% from £300,001 to £500,000. No first-time buyer relief applies above £500,000. These thresholds reverted in April 2025 from temporary higher thresholds that had been in place since September 2022. Note: Scotland has Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT) - both with different rates.

From 1 April 2025: First-time buyers pay 0% on the first £300,000, and 5% on £300,001 to £500,000. So on a £400,000 purchase: £5,000 SDLT (5% on £100,000 above the threshold). If the property is over £500,000, first-time buyer relief is completely withdrawn and standard rates apply. To qualify: you must never have owned a property anywhere in the world, it must be your only purchase, and you must occupy it as your main residence. Buying with a partner where one is a first-time buyer and one is not disqualifies you from first-time buyer relief.

From October 31, 2024, buyers of second homes, buy-to-let properties, or additional residential properties pay a 5% surcharge on top of standard SDLT rates (increased from 3% by the October 2024 Budget). So at every SDLT band, add 5%: 5% on first £125k (instead of 0%), 7% on £125k-£250k, 10% on £250k-£925k, 15% on £925k-£1.5m, 17% above £1.5m. You are classed as a higher rate buyer if you own any other dwelling anywhere in the world at the end of the day of your transaction, even if you intend to sell it. You can reclaim the surcharge (within 12 months) if you sell your previous main home within 36 months of buying the new one.

Stamp Duty Land Tax must be filed and paid within 14 days of completion (the day you legally take ownership of the property). Your solicitor or conveyancer will typically handle the SDLT return and payment on your behalf as part of the conveyancing process, often collecting the funds from you before completion. Missing the 14-day deadline results in automatic penalties and interest. SDLT is not due at exchange of contracts - only at completion, so there's no payment risk if a deal falls through after exchange (though your legal fees still apply).

Yes. Scotland has Land and Buildings Transaction Tax (LBTT): 0% up to £145,000, 2% from £145k-£250k, 5% from £250k-£325k, 10% from £325k-£750k, 12% above £750k. First-time buyers get a relief increasing the nil-rate threshold to £175,000. Additional property surcharge is 6% (from April 2025). Wales has Land Transaction Tax (LTT): 0% up to £225,000, 6% from £225k-£400k, 7.5% from £400k-£750k, 10% from £750k-£1.5m, 12% above £1.5m. Additional property surcharge is 4%. LTT has no special first-time buyer relief. Always check the applicable country's rules based on where the property is located, not where you live.

Several legitimate strategies: Transfer to a spouse before purchase to ensure first-time buyer status (if one partner has owned property). Negotiate on price if near a threshold - the difference on SDLT can be significant. Allocate value to chattels (movables) included in the sale like curtains, carpets, and appliances - properly documented, this reduces the SDLT base. Use first-time buyer relief if genuinely eligible. Multiple dwellings relief applies if buying 6+ properties. Mixed-use relief if buying a property with commercial use (lower commercial rates apply). Claiming Multiple Dwellings Relief (MDR) for two or more dwellings in one transaction. WARNING: HMRC actively challenges aggressive SDLT avoidance schemes - stick to legitimate strategies.

Non-residential and mixed-use properties use different SDLT rates in England: 0% on the first £150,000, 2% from £150,000 to £250,000, 5% above £250,000. These rates are generally lower than residential rates, which is why 'mixed use' claims are common SDLT planning strategies - if your property genuinely includes any commercial element (shop, office, barn conversion with permitted development), mixed-use rates may apply, saving significant SDLT on higher-value purchases.