UK Stamp Duty 2026 — Complete Guide to SDLT, LBTT & LTT
Stamp duty is one of the largest upfront costs in any UK property purchase, yet it is also one of the most misunderstood. Many buyers mistakenly believe they pay the top rate on the entire price — they do not. The UK uses a progressive banded system, where each rate applies only to the slice of the price that falls within that band. This guide explains how stamp duty works across all three UK nations in 2026, who qualifies for relief, and how the surcharges work for additional properties and buy-to-let investors.
How the Banded System Works — With an Example
The progressive calculation means a buyer paying £400,000 for a main residence in England in 2026 does not pay 5% on the whole £400,000. Instead:
£0 – £125,000: 0% = £0
£125,001 – £250,000: 2% = £2,500
£250,001 – £400,000: 5% = £7,500
Total SDLT due: £10,000 (effective rate: 2.5%)
This is why effective rates are always lower than the headline top rate — and why comparing effective rates matters more than comparing top band rates when evaluating purchase prices.
2026 SDLT Changes — What Happened After March 2025
The temporary higher thresholds introduced in the September 2022 mini-budget officially expired on 31 March 2025. From 1 April 2025, England and Northern Ireland reverted to the pre-2022 bands. The most impactful change for buyers was the first-time buyer nil-rate threshold dropping from a temporary £425,000 back to £300,000, with relief cutting off above £500,000. The standard nil-rate threshold also reverted to £125,000 from the temporary £250,000.
The additional property surcharge was separately increased from 3% to 5% in October 2024, significantly raising the cost for second-home buyers and landlords purchasing buy-to-let properties in England and Northern Ireland.
Scotland LBTT and ADS in 2026
Scotland operates its own system — Land and Buildings Transaction Tax (LBTT) — with its own thresholds and bands set by the Scottish Parliament. One important advantage for Scottish first-time buyers is a higher nil-rate band of £175,000, compared to £300,000 in England (though Scotland's overall bands are different, so direct comparison is complex).
Scottish buyers of additional residential properties also pay the Additional Dwelling Supplement (ADS), which sits at 8% of the full purchase price — not just the portion above a threshold. This makes it the highest flat-rate surcharge in the UK and should be factored into any buy-to-let investment calculations in Scotland.
Wales LTT — Key Differences from SDLT
Wales uses Land Transaction Tax (LTT), administered by the Welsh Revenue Authority. The main residential bands differ from both SDLT and LBTT. Notably, Wales does not offer a first-time buyer relief — all main-residence purchases follow the same standard table regardless of buyer history. Additional property buyers in Wales pay a completely separate, higher rate table rather than a surcharge added to standard rates, which means the total tax on a second home in Wales can appear structured differently even if the absolute figure is comparable.
First-Time Buyer Relief — Region by Region
- England & NI: 0% on the first £300,000, then 5% on £300,001–£500,000. No relief if price exceeds £500,000 — standard rates apply to the whole purchase.
- Scotland: Nil-rate band extended to £175,000 for first-time buyers. Relief applies to main residences purchased for the first time anywhere in the world.
- Wales: No first-time buyer relief available — standard LTT residential rates apply.
Additional Property Surcharge — Buy-to-Let and Second Homes
If you are purchasing a residential property and will own more than one residential property on completion, additional charges apply. In England and NI, the 5% surcharge (from October 2024) is added to each band rate — so the 0% band becomes 5%, the 2% band becomes 7%, and so on. In Scotland, ADS at 8% applies to the full price. In Wales, a separate higher rate table is used, starting at 5% from £1.
You may be able to reclaim the surcharge if you sell your previous main residence within 36 months of completing the new purchase — this is known as a stamp duty refund, and it is worth discussing with your solicitor if you are in a chain.
Hidden Costs Beyond Stamp Duty
Stamp duty is often the largest upfront cost, but not the only one. On a £350,000 property, a buyer might also face conveyancing solicitor fees (£1,500–£2,500), a homebuyer survey or full structural survey (£400–£1,500), a mortgage arrangement fee (£0–£2,000 depending on lender), and land registry fees. Our calculator's Total Buying Cost Summary estimates these alongside your stamp duty to give a more realistic picture of the cash you need on the day of completion.
For mortgage payment estimates alongside your stamp duty figure, use our mortgage calculator. To model the long-term cost of a buy-to-let investment including stamp duty, try our loan calculator.
Related Calculators
Our mortgage calculator helps you estimate monthly repayments once you know the purchase price. The loan calculator is useful for modelling bridging or personal loans to cover stamp duty if needed. Use our APR calculator to compare the true cost of different mortgage products side by side.