Stamp Duty Land Tax 2026/27 — Rates & Reliefs

Stamp Duty Land Tax (SDLT) is a lump-sum tax on buying property in England and Northern Ireland — Scotland uses LBTT and Wales uses LTT instead. It is progressive: you pay each rate only on the slice of the price within that band, so the headline "5%" never applies to the whole purchase. For 2026/27 the standard nil-rate band is £125,000, with 2% from £125,001 to £250,000, 5% to £925,000, 10% to £1.5 million and 12% above. Use this calculator to estimate what you may owe with the Stamp Duty Calculator→.

This guide covers the standard bands, first-time buyer relief, the additional property surcharge, refunds when you sell your old home, and how SDLT interacts with your wider buying budget.

Standard Residential Rates — 2026/27

Because SDLT is progressive, a £500,000 home pays 0% on the first £125,000, 2% on the next £125,000 and 5% on the remaining £250,000. A £1 million home pays 0% to £125,000, 2% to £250,000, 5% to £925,000 and 10% on the final £75,000. The bands apply to the whole purchase price, including the amount borrowed — SDLT is charged on the price, not your deposit. First-time buyers, movers and investors all face the same progressive structure, with reliefs and surcharges applied on top.

Worked Examples — Standard Buyers

The table shows why the middle band matters so much: on a £1 million purchase, over half the bill comes from the £675,000 slice taxed at 5%. Buyers stretching from £900,000 to £1 million pay 10% on the entire excess above £925,000, so check the band boundaries before agreeing a price — negotiating the price down into a lower band can save more than the discount itself.

First-Time Buyer Relief

If you are a first-time buyer purchasing a home for £500,000 or less, the nil-rate band rises to £300,000 and the next £200,000 is taxed at 5%. The relief is worth up to £5,000. Above £500,000 the relief disappears entirely and standard rates apply to the whole price.

You must never have owned a property anywhere in the world, and you must intend to live in the home as your only or main residence. The saving is capped at £5,000 and vanishes completely once you cross £500,000. Shared ownership buyers can elect to pay SDLT on the full market value and use the relief immediately, subject to the current relief conditions.

Additional Property Surcharge

Buying a second home, buy-to-let or holiday let — or replacing your main home without selling the old one first — usually triggers a 5% surcharge on every band. That means 5% on the first £125,000, 7% to £250,000, 10% to £925,000, 15% to £1.5 million and 17% above, and it applies from the first pound.

The surcharge makes buy-to-let maths harder: on a £300,000 rental, £15,000 of stamp duty plus legal fees and an EPC can absorb a full year of rent. Refund: if you sell your previous main home within 36 months of completing the new purchase, you can reclaim the full surcharge — the "replacement of main residence" relief. You claim the refund online through GOV.UK, and HMRC's current deadline is generally the later of 12 months after the sale or 12 months after the filing date of the SDLT return for the new home. Companies and other corporate buyers of residential property over £500,000 face a flat 17% rate, with limited reliefs and exceptions.

Leasehold, Shared Ownership and Gifts

Leasehold purchases pay SDLT on the purchase price plus, in some cases, the net present value of the ground rent — most new-build flats therefore attract a small extra charge on top of the price-based calculation. Shared ownership buyers can choose to pay SDLT on the full market value once, or in stages as they stair-case their share, and first-time buyers on shared ownership can apply the relief to the full-value election. Transfers between spouses or civil partners are exempt, as are gifts with no consideration, but buying out an ex-partner's share after divorce is a chargeable transaction based on the consideration paid. Each of these cases has its own return and filing window, and conveyancers normally handle them — but the buyer remains liable if the return is wrong.

SDLT and Your Wider Buying Costs

First-time buyers in London illustrate the relief's power: on a £500,000 flat, SDLT falls from £15,000 to £10,000 — a £5,000 saving that can fund part of a survey or moving costs. For movers, the more expensive the chain, the bigger the bill: moving from a £400,000 flat to a £750,000 house costs £27,500 in SDLT before a penny of agent fees. Run the numbers through the Mortgage Calculator→ alongside the SDLT figure so your total cash requirement — deposit, duty, fees — is realistic before you bid.

Corporate and Non-Natural Buyers

Companies, partnerships with corporate members and other "non-natural persons" buying residential property over £500,000 pay a flat 17% SDLT rate, with limited reliefs for property developers, lenders and other qualifying cases. The 17% charge applies to the full price from the first pound, so a £750,000 house bought through a company costs £127,500 of SDLT against £31,250 for an individual. Below £500,000 the corporate buyer faces the standard residential rates plus the 5% surcharge. Companies buying commercial property use the non-residential rates instead, which start with a £150,000 nil band — a completely different regime. Any investor considering a company purchase should model the SDLT alongside the ATED charge and check the specific relief conditions.

Frequently Asked Questions

Evidence and decision checks

A reliable stamp duty land tax 2026 27 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.

Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.

Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.

Evidence and decision checks

A reliable stamp duty land tax 2026 27 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.

Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.

Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.

Estimate any price with the Stamp Duty Calculator→, and if you are buying for the first time read the First-Time Buyer Stamp Duty guide or the Second Home Stamp Duty guide for the surcharge details.

Official sources

• GOV.UK: Stamp Duty Land Tax residential property rates
• GOV.UK: Stamp Duty Land Tax
• HMRC: Refund of higher SDLT rates
• HMRC: SDLT for corporate bodies

These GOV.UK and HMRC pages are the official references for SDLT rates, filing, higher-rate refunds and corporate-body rules. Check the live rates and transaction facts before completing a property purchase.