Stamp Duty Land Tax (SDLT) remains one of the biggest upfront costs in a UK property purchase, and one of the most misunderstood. The rates and thresholds introduced on 1 April 2025 remain unchanged through 2026, but confusion about how the bands actually apply is still one of the most common questions we hear from buyers.
SDLT is charged in bands, not as a single flat rate on the whole purchase price: 0% on the portion up to £125,000, 2% on the portion from £125,001 to £250,000, 5% on the portion from £250,001 to £925,000, 10% on the portion from £925,001 to £1.5 million, and 12% on anything above £1.5 million. Crucially, each band only applies to the slice of the price that falls within it — not the whole purchase price. A common misconception is that crossing into a higher band means the higher rate applies to the entire amount; it doesn't.
First-time buyers pay 0% up to £300,000, and 5% on the portion between £300,001 and £500,000. There's no relief available above £500,000 — a first-time buyer purchasing above that threshold pays SDLT at the standard rates on the full amount instead.
Anyone purchasing an additional residential property — a second home, holiday home, or buy-to-let — pays a 5 percentage point surcharge on top of every standard band, taking the effective rates to 5%, 7%, 10%, 15% and 17% depending on the portion of the price. This applies even if the additional property is significantly cheaper than your main home.
Non-UK resident buyers face a further 2% surcharge on top of all other applicable rates, including the additional-property surcharge where relevant — meaning an overseas buyer purchasing a second home in England could face a combined surcharge of 7 percentage points above the standard bands.
SDLT is due within 14 days of completion and has to be funded alongside your deposit and other purchase costs — it isn't something you can typically add to your mortgage. Getting an accurate figure early, rather than estimating, avoids an unpleasant surprise close to completion. It's also worth factoring stamp duty into how you approach your offer: a property priced just above a threshold can sometimes be worth negotiating down to just below it, given the material difference in tax payable.
SDLT calculations get more complex with mixed-use property, multiple dwellings relief, and uncertain second-home status (for example, if you own a share in another property). If your situation isn't straightforward, it's worth confirming your position with your solicitor or conveyancer before you exchange, rather than after.
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