Stamp Duty Land Tax caught out a genuine number of buyers when the temporary post-pandemic thresholds expired on 1 April 2025 – rates and reliefs many people still assume apply have since reverted, and a further surcharge increase has landed on top. Here’s what you actually pay in 2026, and why the type of purchase you’re making changes the calculation considerably.
The Standard Rates You’re Working From
For a standard home-mover purchase in England and Northern Ireland, SDLT is banded: 0% on the first £125,000, 2% on the portion 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. Each band applies only to the portion of the price within it, not the whole purchase price at a single rate.
First-Time Buyer Relief: The Figure Genuinely Changed
First-time buyers pay 0% up to £300,000, then 5% on the portion between £300,001 and £500,000. Above £500,000, no relief applies at all and standard rates take over completely. It’s worth knowing this reverted down from a temporarily higher £425,000 threshold that applied before April 2025 – if you’ve seen the higher figure quoted anywhere, including in older articles or calculators, it’s no longer current.
The Additional Property Surcharge
Buying a second home, a buy-to-let, or any residential property that means you’ll own more than one at the end of the day of completion triggers a 5 percentage point surcharge on top of every standard band, applying from purchases of £40,000 or more. This surcharge rose from 3% to 5% on 31 October 2024, and applies whether you’re buying a genuine second home for personal use or a buy-to-let investment – the surcharge doesn’t distinguish by purpose, only by whether it’s an additional property.
A Worked Example Worth Understanding
Consider a £500,000 additional property purchase. Standard SDLT comes to £15,000; add the 5% surcharge on the full price (£25,000), and the total bill is £40,000 – considerably more than many buyers initially budget for. It’s worth having your solicitor confirm the exact figure before you exchange, not after.
The Threshold Worth Negotiating Around
At £925,000, the standard rate jumps from 5% to 10% on the next slice of the price. A modest negotiation from, say, £930,000 down to £925,000 can save meaningfully more than the £5,000 price difference alone once the rate change is factored in – genuinely worth raising during negotiations on a purchase sitting near this threshold.
Non-UK Residents Pay an Additional Layer Again
If you’re a non-UK resident, a further 2% surcharge applies on top of everything else – standard rates, plus the additional property surcharge where relevant, plus this residency-based surcharge. This genuinely stacks, meaning a non-resident buying an additional property faces the highest combined rate in the system.
Why Multiple Dwellings Relief No Longer Helps
If you’re buying several properties in a single transaction, it’s worth knowing Multiple Dwellings Relief – which previously let buyers calculate SDLT using an average price per dwelling rather than the full combined price – was abolished from 1 June 2024. This genuinely changes the maths for anyone buying a small portfolio or block in one transaction compared with how it worked even a couple of years ago.
Why Let to Buy Involves a Genuine Refund Opportunity
If you’re keeping your current home as a rental while buying a new main residence, you’ll pay the additional property surcharge upfront on the new purchase, since you technically own two properties at completion. Our Let to Buy Mortgages page covers the genuine refund mechanism available if you sell your previous main residence within the required timeframe afterward.
Company Purchases: A Different Calculation Entirely
If you’re buying through a limited company, whether for a standard buy-to-let SPV or a genuinely mixed commercial and residential purchase, the SDLT treatment can differ meaningfully from a personal purchase. Our Limited Company Buy-to-Let page covers this structure in detail, and our Semi Commercial Mortgages page covers mixed-use property, which qualifies for lower commercial SDLT rates rather than residential ones – genuinely worth understanding if your purchase includes any commercial element at all.
Why Getting This Wrong Is a Genuinely Expensive Mistake
HMRC can charge interest and penalties for late or inaccurate SDLT returns, and the sooner an error is disclosed, the more likely any penalty can be reduced. Your solicitor handles the actual return and payment, due within 14 days of completion, but it’s worth understanding the calculation yourself well before that point, since a surprise SDLT bill at completion is one of the most avoidable budgeting mistakes in a property purchase.
Getting Your Specific Calculation Right
Given how much genuinely depends on your buyer status, whether the property is additional, your residency, and whether any commercial element applies, it’s worth confirming your exact SDLT position properly before committing to a purchase price, rather than relying on a generic online calculator that may not reflect your specific circumstances. Get in touch with details of your purchase, and we’ll help you understand the genuine total cost alongside your mortgage options.
