Stamp Duty (SDLT) 2025-26: Rates, Thresholds & First-Time Buyer Relief
Stamp Duty Land Tax was permanently changed in April 2025. Here is how the current rates work, who qualifies for first-time buyer relief, and exactly how much you will pay at different property prices.
What Is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is the tax paid when you buy a property in England or Northern Ireland. It applies to residential and commercial properties and must be paid within 14 days of completion. Your solicitor or conveyancer handles the filing and payment — but the cost comes out of your purchase funds.
Important regional note: Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT). The rates and thresholds differ from England, so this guide covers England and Northern Ireland only.
Standard Residential SDLT Rates (April 2025 Onwards)
SDLT is applied to slices of the purchase price, not the whole amount. The temporary thresholds introduced during the pandemic ended in March 2025, returning to the standard structure:
| Property Price Band | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Worked Example: Standard Main Home Purchase at £350,000
- 0% on first £125,000: £0
- 2% on next £125,000 (£125,001–£250,000): £2,500
- 5% on remaining £100,000 (£250,001–£350,000): £5,000
- Total SDLT: £7,500
First-Time Buyer Relief
First-time buyers receive a significant reduction if the purchase price does not exceed £500,000:
| Property Price Band | First-Time Buyer Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
If the purchase price exceeds £500,000, no first-time buyer relief applies and standard rates are charged in full.
First-Time Buyer at £350,000
- 0% on first £300,000: £0
- 5% on remaining £50,000 (£300,001–£350,000): £2,500
- Total SDLT: £2,500 (saving £5,000 versus standard rates)
First-Time Buyer at £250,000
- 0% on first £250,000: £0
- Total SDLT: £0 (complete exemption)
Additional Property Surcharge
From October 2024, a 5% surcharge applies to all residential property purchases that are not your only or main home. This includes:
- Buy-to-let properties
- Second homes and holiday homes
- Properties bought by companies (minimum 15% flat rate for residential properties worth over £500,000 via a company)
- Situations where you own another property and are not selling your main home before buying
The surcharge applies to every band — so the effective rates on an additional property are 5%, 7%, 10%, 15%, and 17% respectively. If you subsequently sell your previous main residence within three years, you can reclaim the 5% surcharge from HMRC.
Buy-to-Let Purchase at £350,000
- Standard rates: £7,500
- 5% surcharge on full £350,000: £17,500
- Total SDLT: £25,000
SDLT at Different Price Points
| Purchase Price | Main Home | First-Time Buyer | Additional Property |
|---|---|---|---|
| £200,000 | £1,500 | £0 | £11,500 |
| £300,000 | £5,000 | £0 | £20,000 |
| £350,000 | £7,500 | £2,500 | £25,000 |
| £500,000 | £15,000 | £10,000 | £40,000 |
| £600,000 | £20,000 | £20,000 (no relief) | £50,000 |
| £1,000,000 | £43,750 | £43,750 (no relief) | £93,750 |
Multiple Dwellings Relief and Other Reliefs
Multiple Dwellings Relief (MDR) — which previously allowed investors buying multiple properties in a single transaction to average the SDLT — was abolished from June 2024. This makes portfolio purchases considerably more expensive for landlords.
Other reliefs that still apply include: transfers between spouses or civil partners on divorce (exempt), gifts between family members (may be exempt if no consideration), and charities acquiring property for charitable purposes.
When Is SDLT Due?
SDLT must be filed and paid within 14 days of completion. Your solicitor calculates the amount, files the return online with HMRC, and collects the funds from you before completion. Failure to pay within 14 days results in a £100 late filing penalty, rising to £200 after three months, plus interest on the unpaid amount.
Frequently Asked Questions
How much stamp duty do I pay on a £350,000 house in 2025-26?
For a main home: £7,500. For a first-time buyer: £2,500. For an additional property (buy-to-let/second home): £25,000. All figures use April 2025 rates.
When is stamp duty payable?
Within 14 days of completion. Your solicitor handles the filing and payment process; late payment incurs penalties and interest.
Do I pay stamp duty on a second home or buy-to-let?
Yes, plus a 5% surcharge on all bands. On a £300,000 additional property, the surcharge alone adds £15,000. If you sell your old main home within three years of the purchase, you can reclaim the surcharge.