Buyers
Stamp Duty in 2026: What You Pay at Every Price Point
⚡ QUICK ANSWER
Stamp duty land tax (SDLT) is the tax you pay when buying a property in England or Northern Ireland. First-time buyers pay nothing on the first £300,000, then 5% on the amount between £300,001 and £500,000. Standard buyers pay from £125,001 upwards. Second home buyers add a 5% surcharge on the full price. The first-time buyer threshold dropped from £425,000 in April 2025 — a £125,000 cut that moved hundreds of thousands more buyers into the tax net overnight.
Stamp duty is straightforward maths once you understand the bands. But most buyers get confused because there are three different sets of rates: one for first-time buyers, one for standard purchases, and one for additional properties. The April 2025 threshold change made things worse — thousands of buyers discovered weeks after exchange that they owed thousands when they expected to pay nothing.
The April 2025 Threshold Drop
£125,000
drop in first-time buyer nil-rate threshold — from £425,000 to £300,000
HMRC, April 2025
£5,000
stamp duty now owed by a first-time buyer at £400,000 — previously £0
HMRC SDLT rates, 2025-26
What do first-time buyers pay at every price point?
If this is your first property purchase anywhere in the UK or abroad, and it will be your main residence, you get first-time buyer relief. You pay nothing on the first £300,000, then 5% on the portion between £300,001 and £500,000. Above £500,000 you lose all relief and pay standard rates.
| Purchase price | Stamp duty (first-time buyer) |
|---|---|
| £200,000 | £0 |
| £250,000 | £0 |
| £300,000 | £0 |
| £325,000 | £1,250 |
| £350,000 | £2,500 |
| £400,000 | £5,000 |
| £425,000 | £6,250 |
| £450,000 | £7,500 |
| £500,000 | £10,000 |
What do standard buyers pay if they are not first-time buyers?
If you have bought property before — even if you sold it years ago, or owned abroad — you are not a first-time buyer. The nil-rate band is £125,000, so even on a £150,000 property you will pay stamp duty.
| Purchase price | Standard residential stamp duty |
|---|---|
| £125,000 | £0 |
| £150,000 | £500 |
| £200,000 | £1,500 |
| £250,000 | £2,500 |
| £300,000 | £5,000 |
| £350,000 | £7,500 |
| £400,000 | £10,000 |
| £500,000 | £15,000 |
| £750,000 | £27,500 |
| £1,000,000 | £41,250 |
💡 STANDARD RATE BANDS
0% up to £125,000. 2% from £125,001 to £250,000. 5% from £250,001 to £925,000. 10% from £925,001 to £1.5 million. 12% above £1.5 million. Tax is calculated on the portion within each band, not the whole price.
What do second home and buy-to-let buyers pay?
If the property will not be your main residence, you pay an extra 5% surcharge on top of standard rates. This covers second homes, investment properties, and buy-to-let purchases. The surcharge was increased to 5% in October 2024.
| Purchase price | Standard + 5% surcharge |
|---|---|
| £200,000 | £11,500 |
| £250,000 | £15,000 |
| £300,000 | £20,000 |
| £350,000 | £25,000 |
| £400,000 | £30,000 |
| £500,000 | £40,000 |
⚠️ THE 5% SURCHARGE IS ON THE FULL PRICE
On a £300,000 second home, the 5% surcharge is £15,000 — that is 5% of the total purchase price, not 5% of the portion above a threshold. Many buyers think they can structure the purchase to reduce this. You cannot. It is a flat surcharge on the full amount.
What changed in April 2025 and who got caught out?
On 1 April 2025, the government tightened relief. The standard nil-rate threshold dropped from £250,000 to £125,000. The first-time buyer threshold dropped from £425,000 to £300,000. The maximum price eligible for first-time buyer relief fell from £625,000 to £500,000.
| Purchase price | FTB (pre-April 2025) | FTB (April 2025+) | Change |
|---|---|---|---|
| £300,000 | £0 | £0 | No change |
| £350,000 | £0 | £2,500 | Now liable |
| £400,000 | £0 | £5,000 | Now liable |
| £425,000 | £0 | £6,250 | Now liable |
| £500,000 | £3,750 | £10,000 | Much higher |
London and the South East were hit hardest. In areas where average prices exceed £350,000, the share of first-time buyers paying stamp duty roughly doubled overnight.
How do you calculate your exact stamp duty bill step by step?
Step 1: Check your buyer status. First-time buyer means you have never owned property anywhere in the world — not even a shared ownership stake or an inherited property you later sold. The property must be your main residence and cost £500,000 or less.
Step 2: Identify your rate band. First-time buyer: 0% to £300k, 5% from £300k to £500k. Standard buyer: 0% to £125k, 2% to £250k, 5% to £925k, 10% to £1.5m, 12% above. Second home/BTL: standard bands plus 5% of the full purchase price.
Step 3: Multiply each portion by its rate and add up. Your solicitor will handle this at completion, but knowing the number months in advance lets you budget properly.
⚠️ NON-UK RESIDENTS: ADD 2% EXTRA
If you were not present in the UK for at least 183 days in the 12 months before purchase, you pay an extra 2% on top of all rates. This stacks with the 5% second home surcharge if both apply.
Frequently asked questions
When do I pay stamp duty?
On completion day. Your solicitor collects it along with all other completion funds. If you do not pay within 30 days, you face a penalty starting at 5% of the unpaid duty.
I bought my first home, sold it, and now I’m buying again. Do I get first-time buyer relief?
No. First-time buyer relief applies once. Once you have owned property anywhere, you lose the relief permanently and pay standard rates on all future purchases.
Can I reduce stamp duty by paying separately for contents?
Possibly. If you negotiate a genuine, separate chattels valuation (removable fixtures and contents), you may reduce the stamp duty bill. HMRC must agree the figure is genuine. Your solicitor will advise whether this is worthwhile for your purchase.
Can I claim a refund if my purchase falls through?
Only in specific circumstances. If the transaction does not complete, you may claim a refund within four years. If the purchase completes but is later reversed, you generally cannot claim back. The safest approach: only complete when you are certain the purchase will go ahead.
Know the full cost before you commit
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