Stamp Duty Land Tax 2026: SDLT Rates & Calculation Guide
Stamp Duty Land Tax (SDLT) is the single largest upfront friction cost in UK property acquisition. For residential property investors, buy-to-let purchasers, and second-home owners, the tax burden escalated sharply following the introduction of the 5% Additional Property Surcharge on 31 October 2024. Calculating SDLT accurately prior to making an offer is crucial to preventing fatal cash shortfalls on completion day.
Here is a complete breakdown of current 2026/27 Stamp Duty rates, tier thresholds, surcharge applications, and allowable exemptions.
1. UK Residential SDLT Bands & Surcharge Rates
SDLT in England and Northern Ireland operates on a progressive, tiered sliding scale—you only pay the rate on the slice of the price within each specific threshold.
| Price Band Threshold | Standard Home Mover Rate | Additional Property / BTL Rate (+5% Surcharge) |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1,500,000 | 10% | 15% |
| Portion Above £1,500,000 | 12% | 17% |
Note: Non-UK residents face an additional 2% surcharge across every band on top of the rates listed above.
2. First-Time Buyer Relief Rules
If you have never owned an interest in a residential property anywhere in the world, you qualify for First-Time Buyer Relief:
- 0% SDLT on the first £300,000 of purchase price.
- 5% SDLT on the portion between £300,001 and £500,000.
- No Relief Available: If the purchase price exceeds £500,000, first-time buyer relief is completely eliminated, and standard rates apply across the entire sum.
3. Worked Calculation: £320,000 Buy-to-Let Purchase
Let's calculate the total Stamp Duty for an investor purchasing a £320,000 residential buy-to-let property with the 5% additional property surcharge:
- Band 1 (£0 to £125,000 @ 5%): £125,000 × 0.05 = £6,250
- Band 2 (£125,001 to £250,000 @ 7%): £125,000 × 0.07 = £8,750
- Band 3 (£250,001 to £320,000 @ 10%): £70,000 × 0.10 = £7,000
- Total SDLT Payable: £6,250 + £8,750 + £7,000 = £22,000
- Effective Stamp Duty Rate: (£22,000 / £320,000) = 6.875%
In this example, the investor must budget £22,000 in pure friction tax payable to HMRC within 14 days of completion.
4. Reclaiming the 5% Additional Property Surcharge
If you purchase a new main residence before selling your previous home, you must pay the 5% additional property surcharge on the new purchase. However, if you successfully sell your previous main home within 36 months (3 years), you can submit a full refund claim to HMRC for the 5% surcharge portion.
5. Non-Residential & Mixed-Use Exemption
If you purchase a property that has both residential and commercial elements (such as a ground-floor retail shop with an upper residential flat), or a commercial building converted under permitted development, it is classed as non-residential / mixed-use. Non-residential purchases are completely exempt from the 5% surcharge and follow the lower 0/2/5% commercial SDLT bands, representing huge friction savings for astute developers.
Guidance only. BrickCrunch provides general information, not financial, tax or legal advice. Our calculators give estimates only, using rates we verify against gov.uk — always confirm figures and your own position before acting.