What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a tax paid to HMRC when you purchase a property or land in England or Northern Ireland above a certain value. The amount you owe depends on the purchase price, the type of buyer you are, and whether the property will be your main home or an additional one.
Since 1 April 2025, the thresholds have changed, meaning more buyers now fall within the taxable range. Understanding where you stand is an important part of planning your property purchase.
Rates for main residence buyers
If you have owned a property before and are buying a main home, the following rates apply. The zero-rate band now ends at £125,000, down from the previous £250,000 threshold.
| Property value (portion) | SDLT rate |
|---|---|
| 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% |
Rates for first-time buyers
First-time buyers continue to benefit from a relief scheme, though the eligible thresholds were reduced in April 2025. The zero-rate band now applies to properties up to £300,000 (previously £425,000), and relief is only available on properties up to £500,000 in total value.
| Property value (portion) | SDLT rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 - £500,000 | 5% |
Additional properties and buy-to-let
Buyers purchasing a second home, holiday property, or buy-to-let investment pay an additional surcharge on top of the standard rates. As of the current rules, this surcharge stands at 5% on every band including the zero-rate portion. This means there is no tax-free slice for additional property buyers.
It is worth factoring this cost into your investment calculations from the outset, as it can represent a significant upfront expense.
How to calculate what you owe
SDLT is charged on a tiered basis, similar to income tax. You only pay the rate that applies to each portion of the purchase price, not on the entire amount at the highest rate. For example, if you buy a property for £400,000 as a previous homeowner, the calculation would be: 0% on the first £125,000, 2% on the next £125,000, and 5% on the remaining £150,000.
HMRC provides an official calculator on their website to help you work out your exact liability before committing to a purchase.
When is Stamp Duty due?
SDLT must be paid and a return submitted to HMRC within 14 days of completing your property purchase. Your solicitor or conveyancer will typically handle this on your behalf as part of the completion process. Missing the deadline can result in penalties and interest charges.
Reliefs and exemptions
Beyond first-time buyer relief, there are a number of other situations where reduced or zero SDLT may apply. These include certain shared ownership purchases, transfers of property between spouses or civil partners, and properties purchased under specific government schemes. The full list of reliefs is published and updated on the official HMRC website.
Key takeaways for buyers in 2026
The April 2025 changes have made Stamp Duty a more significant cost for a broader range of buyers. Whether you are stepping onto the property ladder for the first time or moving up the chain, it pays to factor SDLT into your budget at the earliest stage. Seek advice from a qualified mortgage broker or financial adviser if you are unsure how the rules apply to your situation.
