Stamp Duty in the UK 2026: Complete Guide to SDLT, LBTT & LTT

What is stamp duty?

Stamp duty is a tax paid by the buyer when purchasing property or land above a certain price threshold in the United Kingdom. The name "stamp duty" dates back to 1694 when documents required a physical stamp to show the tax had been paid. Today, the process is entirely digital, but the name has stuck in common usage.

The UK does not have a single stamp duty system. Since devolution, three separate property transaction taxes operate across the four nations:

• Stamp Duty Land Tax (SDLT) - applies in England and Northern Ireland, administered by HMRC
• Land and Buildings Transaction Tax (LBTT) - applies in Scotland, administered by Revenue Scotland
• Land Transaction Tax (LTT) - applies in Wales, administered by the Welsh Revenue Authority

All three taxes are progressive - you pay each rate only on the portion of the purchase price that falls within that band, not on the entire price. This is similar to how income tax works. A property costing £300,000 in England does not attract 5% on the full amount; the first £125,000 is tax-free, the next £125,000 is taxed at 2%, and only the final £50,000 is taxed at 5%.

SDLT - England & Northern Ireland

Stamp Duty Land Tax is the longest-established of the three taxes and applies to residential property purchases in England and Northern Ireland. HMRC administers the tax, and your solicitor or conveyancer is responsible for filing the return and paying the duty on your behalf.

Current SDLT rates (2025-26)

The following standard residential rates apply to purchases completing on or after 1 April 2025:

For a property costing £450,000, the SDLT calculation would be: £0 on the first £125,000, £2,500 on the next £125,000 (at 2%), and £10,000 on the remaining £200,000 (at 5%), giving a total of £12,500. The effective rate is approximately 2.78%.

First-time buyer relief

First-time buyers in England and Northern Ireland benefit from a higher nil-rate threshold. If the purchase price is £500,000 or less, no SDLT is payable on the first £300,000 and 5% applies to the portion between £300,001 and £500,000. For a first-time buyer purchasing at £450,000, the duty would be £7,500 - a saving of £5,000 compared to standard rates.

If the purchase price exceeds £500,000, first-time buyer relief is not available and standard rates apply to the entire purchase. To qualify, neither you nor anyone you are buying with can have previously owned a residential property anywhere in the world. This includes inherited property and property owned overseas.

Additional dwelling surcharge

If you already own a residential property when you complete on a new purchase, an additional 5% surcharge applies on top of standard SDLT rates. This affects buy-to-let investors, second-home buyers and anyone who has not sold their existing home before completing on a new one.

The surcharge applies to the entire purchase price, not just the amount above the nil-rate threshold. On a £300,000 second home, the additional surcharge alone would be £15,000, on top of standard SDLT of £2,500, giving a total of £17,500.

You can reclaim the surcharge if you sell your previous main residence within 36 months of completing on the new property. The claim must be made within 12 months of selling the old property, or within 12 months of the filing date for the new purchase, whichever is later.

Non-resident surcharge

Since April 2021, an additional 2% surcharge applies to purchases by non-UK residents. This is on top of standard rates and on top of any additional dwelling surcharge. A non-resident buying a second property at £500,000 would face standard SDLT of £12,500 plus the 5% additional dwelling surcharge (£25,000) plus the 2% non-resident surcharge (£10,000), totalling £47,500.

You are considered non-UK resident for SDLT purposes if you have not been present in the UK for at least 183 days during the 12 months before completion. If you become UK resident within the following 12 months, you can apply for a refund of the 2% surcharge.

LBTT - Scotland

Scotland replaced SDLT with Land and Buildings Transaction Tax (LBTT) on 1 April 2015. Revenue Scotland administers the tax. LBTT is also progressive, with its own rate bands:

First-time buyers in Scotland benefit from a higher nil-rate threshold of £175,000 instead of £145,000, after which standard rates apply. There is no upper price cap for eligibility as there is with SDLT first-time buyer relief.

Scotland's Additional Dwelling Supplement (ADS) is 6% - the highest of the three jurisdictions. This applies from the first pound of the purchase price when you already own another residential property. The ADS can be reclaimed if you sell your previous main home within 18 months of buying the new one.

LTT - Wales

Wales introduced Land Transaction Tax (LTT) on 1 April 2018, replacing SDLT. The Welsh Revenue Authority administers it. LTT has its own rate bands:

Wales does not currently offer a specific first-time buyer relief for LTT. However, the nil-rate threshold of £225,000 is the highest of the three jurisdictions, which benefits all buyers including first-time buyers.

The higher rates for additional dwellings in Wales add 4% to each band - the lowest surcharge of the three jurisdictions. This applies when you own another residential property at the end of the day of the transaction.

How to pay stamp duty

In practice, you do not pay stamp duty directly. Your solicitor or conveyancer calculates the amount, includes it in your completion statement and submits the return to the relevant authority on your behalf. The cost is typically drawn from the funds you transfer for completion.

England & Northern Ireland: Your solicitor files an SDLT return with HMRC within 14 days of completion. The duty must be paid at the same time. Late filing attracts an automatic £100 penalty, increasing to £200 if the return is more than three months late, plus daily penalties and interest.

Scotland: LBTT returns must be submitted to Revenue Scotland within 30 days of the effective date. Payment is due at the same time. Penalties apply for late filing.

Wales: LTT returns are filed with the Welsh Revenue Authority within 30 days of the effective date of the transaction. Again, payment is due at the same time.

Stamp duty holidays - a brief history

The UK government has periodically adjusted stamp duty thresholds to stimulate the property market. The most significant recent change was the Covid-19 stamp duty holiday, which ran from July 2020 to September 2021. During the full holiday period, the nil-rate threshold was raised to £500,000 in England and Northern Ireland, saving buyers up to £15,000.

In the September 2022 mini-budget, the nil-rate threshold was raised from £125,000 to £250,000 and the first-time buyer threshold from £300,000 to £425,000 (on properties up to £625,000). These changes were initially described as permanent but were reversed from 1 April 2025, returning thresholds to their previous levels.

Scotland and Wales have implemented their own temporary relief measures at various points. Revenue Scotland offered a temporary increase to the nil-rate band during the Covid period, and the Welsh Revenue Authority similarly raised its LTT threshold.

The lesson for buyers is that stamp duty rates and thresholds can change with relatively little notice. Always check the current position before budgeting for a purchase.

Use our stamp duty calculator

Our UK Stamp Duty Calculator covers all three jurisdictions - England & Northern Ireland (SDLT), Scotland (LBTT) and Wales (LTT). It includes first-time buyer relief, additional dwelling surcharges and the non-resident surcharge, with a detailed band-by-band breakdown of your liability.