Buying a House:
Stamp Duty & Tax Guide
Last reviewed: April 2026
Stamp Duty Land Tax (SDLT) is the biggest tax cost of buying property. First-time buyers and those buying additional homes face different rates. Here is how to calculate your bill.
At a glance
- ✓Standard SDLT: 0% up to £250k, 5% on £250k–£925k, 10% on £925k–£1.5m, 12% above
- ✓First-time buyers pay 0% up to £425k — saving up to £8,750 on a £425k purchase
- ✓Second homes and buy-to-lets attract a 5% surcharge on top of standard rates
- ✓Scotland (LBTT) and Wales (LTT) have different rate structures
Stamp Duty Land Tax (SDLT) rates 2026
SDLT is calculated on the portion of the purchase price that falls within each band — like income tax, not a flat rate on the whole price.
| Purchase price band | Standard | First-time buyer | 2nd home / BTL |
|---|---|---|---|
| Up to £250,000 | 0% | 0% | 5% |
| £250,001 – £925,000 | 5% | 5% | 10% |
| £925,001 – £1,500,000 | 10% | 10% | 15% |
| Over £1,500,000 | 12% | 12% | 17% |
First-time buyer relief applies on purchases up to £625,000. Above £625,000, standard rates apply even for first-time buyers. Surcharge is on top of the standard rate on each band.
Worked example: £350,000 purchase
Standard buyer
First-time buyer (same £350,000 property)
Scotland and Wales: different rules
Scotland replaced SDLT with Land and Buildings Transaction Tax (LBTT) in 2015. Wales replaced it with Land Transaction Tax (LTT) in 2018. Both have broadly similar structures but different thresholds and rates.
In Scotland, the nil-rate LBTT threshold is currently £145,000 (£175,000 for first-time buyers). Additional dwelling supplement in Scotland is 6% (higher than England's 5% surcharge).
Always check the specific rules for the region where you are buying — your conveyancer should handle the correct return.
Frequently asked questions
Frequently asked questions
What counts as a first-time buyer?
You are a first-time buyer if you (and anyone buying with you) have never owned a residential property anywhere in the world. This includes properties owned in other countries or inherited properties. If one buyer is a first-time buyer and the other is not, first-time buyer relief does not apply.
When do I pay Stamp Duty?
SDLT must be paid (and a return submitted to HMRC) within 14 days of completing the purchase. Your conveyancer usually handles this on your behalf.
Is SDLT different in Scotland and Wales?
Yes. Scotland has Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT) — both with different rate structures from English SDLT. The principles are similar but thresholds and rates differ.
Can I claim SDLT back?
In limited circumstances — for example, if you accidentally paid the second home surcharge but later sold your main residence within 3 years, you can apply for a refund. You have 12 months from the sale date to claim.