Stamp Duty Changes Explained
What recent stamp duty changes mean for buyers in 2026, first-time relief, surcharges and practical implications.
Stamp Duty Land Tax (SDLT) changes frequently. Thresholds, reliefs and surcharges move with political priorities, and keeping on top of the current rules is a core part of any property transaction. This post covers the current position in 2026 and the practical implications for different buyer types.
First-time buyer relief
First-time buyer relief applies to purchases up to £500,000 in most of England. The first £300,000 is free of SDLT and the portion between £300,000 and £500,000 is charged at 5%. Above £500,000, no first-time buyer relief applies and standard rates kick in on the whole price.
To qualify, every buyer on the deeds must be a first-time buyer, if one person has ever owned a home (including inherited or overseas), the relief is lost.
Standard residential rates
Standard residential rates apply when you are replacing your main residence. The rates are tiered, with no SDLT on the first £125,000, 2% from £125,001–£250,000, 5% from £250,001–£925,000, 10% from £925,001–£1.5m, and 12% above £1.5m.
5% additional property surcharge
If you already own a residential property and are not replacing your main residence, a 5% surcharge applies on top of the standard rates. This captures second homes, buy-to-let, and any scenario where you complete owning more than one property. If you are replacing your main residence but still own another property temporarily, the surcharge can sometimes be reclaimed on later sale of the old home.
Non-resident surcharge
A further 2% surcharge applies to most non-UK resident buyers. Residency is assessed on the days you have been in the UK in the relevant period, broadly, 183 days or more makes you UK resident for these rules.
Practical implications
For first-time buyers, SDLT is often negligible. For movers on mid-priced homes, it is significant but predictable. For second-home buyers and investors, the 5% surcharge can easily be the largest single cost of the purchase and should feature prominently in investment maths.
Your solicitor files the SDLT return and pays HMRC within 14 days of completion. The figures are not guesswork, the SDLT calculator on gov.uk gives an accurate answer for any standard purchase.
Key takeaways
- First-time buyer relief applies up to £500,000, with zero tax below £300,000
- Standard tiered rates apply to main-residence purchases above the thresholds
- 5% surcharge on additional properties, applies to most BTL and second homes
- Non-UK resident buyers pay a further 2% surcharge
- Solicitor files and pays SDLT within 14 days of completion
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