Last updated: 14 October 2026
What are the stamp duty rates in 2026/27?
In England and Northern Ireland, residential stamp duty land tax (SDLT) is 0% on the first £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% above that. These rates have applied since 1 April 2025. Buyers of second homes and buy-to-lets pay an extra 5% on each band, and non-UK residents pay a further 2%. First-time buyers pay nothing on the first £300,000 of a home costing up to £500,000.
Residential rates
| Band | Standard | Additional dwellings (+5%) |
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5m | 10% | 15% |
| Over £1.5m | 12% | 17% |
Non-residential and mixed-use rates
| Band | Rate |
| Up to £150,000 | 0% |
| £150,001 to £250,000 | 2% |
| Over £250,000 | 5% |
Example calculations
- £350,000 main home: 0% on £125,000, 2% on £125,000 (£2,500), 5% on £100,000 (£5,000). Total: £7,500.
- £350,000 buy-to-let: add 5% on the whole price (£17,500). Total: £25,000.
- £350,000 first-time buyer: 5% on £50,000. Total: £2,500.
When the surcharge applies
- You’ll own two or more homes worth £40,000 or more at the end of the day of purchase
- You’re replacing your main home but haven’t sold the old one yet (refund available if you sell within 3 years)
- Buying through a company, which always pays the surcharge
Companies and high-value homes
A company buying a home for more than £500,000 may pay a flat 17% rate, unless it’s for a property rental business or another relief. It may also need to pay the Annual Tax on Enveloped Dwellings.
Scotland and Wales
Scotland charges Land and Buildings Transaction Tax, and Wales charges Land Transaction Tax, with their own bands and surcharges.
Paying SDLT
Your conveyancer files the SDLT return and pays the tax within 14 days of completion. Late filing brings a £100 penalty, rising to £200 after 3 months, plus interest on late payment at 7.75%.
Reducing SDLT legitimately
- Check whether the purchase includes non-residential land, which may qualify for lower rates
- Separate the value of chattels, such as furniture and curtains, which aren’t subject to SDLT
- Six or more dwellings in one transaction can be taxed at non-residential rates
Common mistakes
- Forgetting that a share of an inherited property can trigger the 5% surcharge
- Not claiming the surcharge refund within 12 months of selling the old home
- Over-valuing chattels to reduce SDLT, which HMRC can challenge
- Assuming mixed-use rates apply because of a large garden, which tribunals have usually rejected
If your purchase is unusual, such as a property with land, an annex or a commercial unit, ask for advice before exchange so the SDLT return is right first time.
Frequently asked questions
Do I pay SDLT on a home under £125,000?
Not as a main home, but the surcharge applies to second homes.
Can I get the surcharge back?
Yes, if you sell your previous main home within 3 years.
Are lease premiums taxable?
Yes, and rent can also be taxed above £125,000 net present value.
Does SDLT apply to gifts?
Only if there’s consideration, such as taking over a mortgage.
Related: first-time buyer stamp duty, SDLT vs Land Transaction Tax and stamp duty on second homes.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with stamp duty land tax. See our landlord accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
