Stamp Duty Guide 2025-26: Rates, Thresholds & First-Time Buyer Relief
The temporary Stamp Duty relief that raised the zero-rate threshold expired in April 2025. Here are the current rates, first-time buyer relief, and how the additional surcharge works.
What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a tax on property and land purchases in England and Northern Ireland. It is paid by the buyer, not the seller, and is due within 14 days of completion. Your solicitor usually handles the calculation and payment on your behalf as part of the conveyancing process.
Scotland and Wales have separate systems: Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT), both with their own rates and thresholds set by devolved governments.
Standard SDLT Rates 2025-26
SDLT is calculated on a slice basis — each rate applies only to the portion of the price within that band, not to the full purchase price. This is the same progressive principle as income tax.
| Purchase Price Portion | SDLT 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% |
These rates are for a standard purchase of a residential property that will be your main home, and you do not own any other property. Note: the 0% band returned to £125,000 in April 2025 (it had been temporarily raised to £250,000 from September 2022 to March 2025).
First-Time Buyer Relief 2025-26
First-time buyers purchasing a property in England receive a reduced rate. The threshold for the zero-rate band also dropped in April 2025:
| Purchase Price | First-Time Buyer SDLT |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% on the portion above £300,000 |
| Above £500,000 | Standard rates apply in full (no relief) |
Note: the zero-rate threshold was £425,000 until 31 March 2025. The change to £300,000 from April 2025 increases SDLT costs for first-time buyers purchasing between £300,001 and £425,000.
Worked Examples
Example 1: £350,000 first home (first-time buyer, from April 2025)
- 0% on £0–£300,000: £0
- 5% on £300,001–£350,000 = £50,000 × 5%: £2,500
- Total SDLT: £2,500
Example 2: £350,000 non-first-time buyer (standard rates)
- 0% on £0–£125,000: £0
- 2% on £125,001–£250,000 = £125,000 × 2%: £2,500
- 5% on £250,001–£350,000 = £100,000 × 5%: £5,000
- Total SDLT: £7,500
Additional Property Surcharge
If you are buying a residential property and you already own another (for example, a buy-to-let, holiday home, or second home), an additional 3% surcharge is added to every SDLT band. This applies from the first pound. On the £350,000 purchase above (non-FTB, additional property): standard SDLT £7,500 + surcharge of 3% × £350,000 = £10,500 surcharge = £18,000 total SDLT.
If you are buying a new main home before selling your old one, you pay the surcharge temporarily but can claim a refund within 12 months of selling the previous property.
Frequently Asked Questions
Do first-time buyers pay Stamp Duty in 2025-26?
First-time buyers pay 0% on the first £300,000 and 5% on the portion between £300,001 and £500,000. Above £500,000, standard rates apply in full. The zero-rate threshold dropped from £425,000 to £300,000 in April 2025.
Is Stamp Duty the same in Scotland and Wales?
No. Scotland uses LBTT and Wales uses LTT — both have different rates and thresholds set by their devolved governments. SDLT applies only in England and Northern Ireland.
Can I claim a Stamp Duty refund?
Yes, in certain circumstances. If you paid the 3% surcharge because you owned another property at the time of purchase, and then sold that other property within 3 years, you can apply for a refund of the surcharge within 12 months of that sale.