Stamp Duty (SDLT) 2026/27: Worked Examples Post-April-2025 Reform
Stamp Duty Land Tax 2026/27 worked examples: the April 2025 return to a £125,000 nil band and £300,000 first-time buyer relief, plus 5% and 2% surcharges.
April 2025 SDLT changes - what changed
The 2nd-home surcharge row changed on 31 October 2024; the others on 1 April 2025, when the temporary thresholds ended (gov.uk).
| Threshold | 23 Sept 2022 - 31 Mar 2025 | From April 2025 | Effect |
|---|---|---|---|
| Standard nil-rate band | £250,000 | £125,000 | Up to £2,500 more SDLT for movers (2% on £125k-£250k) |
| FTB nil-rate band | £425,000 | £300,000 | Up to £6,250 more for first-time buyers (5% on £300k-£425k) |
| FTB max property value | £625,000 | £500,000 | No relief at all above £500k |
| 2nd-home surcharge (Oct 2024) | 3% | 5% | +£8,000 on a £400k second home |
| Non-resident surcharge | 2% | 2% | Unchanged |
2026/27 SDLT rate tables (England + NI)
Standard residential (mover)
| Band | Rate |
|---|---|
| £0 - £125,000 | 0% |
| £125,001 - £250,000 | 2% |
| £250,001 - £925,000 | 5% |
| £925,001 - £1,500,000 | 10% |
| Above £1,500,000 | 12% |
First-time buyer relief (under £500k only)
| Band | Rate |
|---|---|
| £0 - £300,000 | 0% |
| £300,001 - £500,000 | 5% |
| Above £500k: no first-time buyer relief - standard rates apply | |
Plus 5% for additional properties and 2% for non-UK residents where they apply, added to every band (so in effect to the whole price). Neither applies to a purchase under £40,000: the higher rates exclude a dwelling costing less than £40,000 (FA 2003 Sch 4ZA para 3(2)), and a purchase with no rent is a non-resident transaction only from £40,000 (Sch 9A para 2). Source: gov.uk.
9 worked SDLT scenarios
Computed with our SDLT calculator engine on the 2026/27 rates.
| Buyer scenario | Price | SDLT | As % of price |
|---|---|---|---|
| FTB, modest flat Below the £300,000 first-time buyer nil band. | £220,000 | £0 | 0.00% |
| FTB, mid-range 5% on the £50,000 above £300,000. | £350,000 | £2,500 | 0.71% |
| FTB, premium (loses relief) Over £500,000 - no relief, standard rates on the whole price. | £550,000 | £17,500 | 3.18% |
| Mover, mid-range Standard rates: 0% to £125k, 2% £125k-£250k, 5% above. | £350,000 | £7,500 | 2.14% |
| Mover, premium Standard rates; the top £500,000 at 5%. | £750,000 | £27,500 | 3.67% |
| Mover, luxury Up to the top of the 10% band. | £1,500,000 | £93,750 | 6.25% |
| Second home, modest Standard rates plus 5% on every band. | £350,000 | £25,000 | 7.14% |
| Non-resident, mover Standard rates plus 2% on every band. | £500,000 | £25,000 | 5.00% |
| Non-resident, second home 5% + 2% = 7% on every band. | £500,000 | £50,000 | 10.00% |
The £500,000 first-time buyer cliff
First-time buyer relief is all or nothing: if the price is over £500,000, you cannot claim it and pay standard rates on the whole price (gov.uk). There is no taper. A first-time buyer paying exactly £500,000 pays £10,000; at £500,001 the bill is £15,000 - £5,000 more for £1 of extra price.
The temporary regime had the same kind of cliff, at £625,000. For first-time buyers paying between £500,000 and £625,000 the change in April 2025 is the largest: at £550,000, for example, the bill rose by £11,250, from £6,250 to £17,500.
Higher rates for additional dwellings - the 5% surcharge
Raised from 3% to 5% on 31 October 2024. It usually applies when you will own more than one residential property after the purchase - buy-to-let, second homes, holiday homes - and is added to every band, so it works out as 5% of the whole price. On a £300,000 buy-to-let that is £15,000 on top of £5,000 at standard rates, £20,000 in total.
If you buy a new main home before selling the old one, you pay the higher rates at completion and can claim them back if you sell your previous main home within 3 years of buying the new one. Per gov.uk, the claim must be made within 12 months of the sale, or 12 months of the filing date of the new home's SDLT return if later. HMRC can allow longer than 3 years only if exceptional circumstances you could not have foreseen stopped the sale (FA 2003 Sch 4ZA para 3(7A)).
Related calculators and guides
- Stamp Duty calculator - interactive SDLT calc with all surcharges and buyer types.
- UK Stamp Duty rules guide - extended narrative on SDLT framework.
- First-time buyer SDLT checklist - step-by-step FTB relief verification.
- LBTT calculator - Scotland's equivalent (different bands).
- LTT calculator - Wales' equivalent (different bands).
- Mortgage affordability calculator - the borrowing-capacity side of the purchase.
- CGT on second home - the disposal-side tax when you later sell.
- Landlord tax guide - full BTL tax framework including SDLT.
Frequently asked questions
What are the SDLT rates for 2026/27?
For residential property in England and Northern Ireland (gov.uk): 0% on the first £125,000, 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5 million and 12% above. These have applied since 1 April 2025, when the temporary higher thresholds of 23 September 2022 to 31 March 2025 ended. First-time buyers pay 0% up to £300,000 and 5% on £300,001-£500,000, with no relief if the price is over £500,000. If you will own more than one residential property you usually pay 5% on top of every band, and non-UK residents usually pay a further 2%.
What changed about SDLT in April 2025?
The temporary thresholds that applied from 23 September 2022 ended on 31 March 2025 (gov.uk): the standard nil-rate band went back from £250,000 to £125,000, the first-time buyer nil band from £425,000 to £300,000, and the first-time buyer price cap from £625,000 to £500,000. Worked through: a £300,000 home costs £2,500 more for a mover; a £400,000 home costs a first-time buyer £5,000 more; and a £550,000 first-time purchase goes from £6,250 to £17,500. Separately, the higher rates for additional dwellings went up from 3% to 5% on 31 October 2024.
When does the higher 5% surcharge for second homes apply?
Usually when, at the end of the day of completion, you will own more than one residential property and the one you are buying is not replacing your main home (Finance Act 2003 Sch 4ZA). It covers buy-to-let, holiday homes and second homes. It is charged on every band, so on a £300,000 buy-to-let the SDLT is £20,000 rather than £5,000. It does not apply if the dwelling costs less than £40,000 (Sch 4ZA para 3(2)). If you buy your new main home before selling the old one, you pay the higher rates but can claim them back if you sell the old home within 3 years (see below).
Who counts as a first-time buyer for SDLT?
Someone who has never owned a freehold or leasehold interest in a residential property, in the UK or anywhere else, and who intends to live in the property as their main home (Finance Act 2003 Sch 6ZA). If you buy jointly, everyone buying must be a first-time buyer. The price must be £500,000 or less.
How does SDLT work in Scotland and Wales?
SDLT applies in England and Northern Ireland. Scotland has Land and Buildings Transaction Tax (LBTT): 0% to £145,000, 2% to £250,000, 5% to £325,000, 10% to £750,000, 12% above £750,000, with a first-time buyer nil band of £175,000 and an Additional Dwelling Supplement of 8% of the whole price on second homes. Wales has Land Transaction Tax (LTT): 0% to £225,000, 6% to £400,000, 7.5% to £750,000, 10% to £1,500,000, 12% above £1,500,000, with no separate first-time buyer relief. Additional properties in Wales pay a separate higher-rates table starting at 5%. See our LBTT and LTT calculators.
When and how do I pay SDLT?
The SDLT return must be filed and the tax paid within 14 days of completion. Your solicitor or conveyancer usually does this for you, and HMRC issues an SDLT5 certificate that HM Land Registry needs to register the purchase. A late return costs £100 if it is up to 3 months late and £200 after that, with a further tax-geared penalty of up to the tax due if it is more than 12 months late (FA 2003 Sch 10 paras 3-4). Interest is charged on late-paid tax. As the buyer you are responsible for the return even when an agent files it, so check the figure with your solicitor before exchange.
What about the £40,000 SDLT threshold?
Two separate rules use £40,000. A purchase of a freehold or an existing lease for less than £40,000 does not need an SDLT return (FA 2003 s.77A). And the higher rates for additional dwellings do not apply if the dwelling being bought costs less than £40,000 (Sch 4ZA para 3(2)). Non-residential and mixed-use property has its own rates: 0% up to £150,000, 2% to £250,000 and 5% above, and gov.uk says most transactions under £150,000 still need a return.
Can I claim the second-home surcharge back?
Yes, if the new property replaces your main home and you sell your previous main home within 3 years of buying the new one (FA 2003 Sch 4ZA para 3(7)). gov.uk says you must claim within 12 months of the sale, or within 12 months of the filing date of the SDLT return for the new home if that is later. If exceptional circumstances you could not have foreseen stopped you selling within 3 years, HMRC can allow a longer period on application (para 3(7A)-(7B)).
Why was the temporary SDLT cut from September 2022 phased out?
The higher nil-rate bands introduced on 23 September 2022 were later confirmed as temporary, ending on 31 March 2025, and they were not extended. From 1 April 2025 the residential bands and first-time buyer relief returned to the levels that applied before 23 September 2022: a £125,000 nil band, and first-time buyer relief up to £300,000 on homes costing up to £500,000.
How do shared-ownership SDLT calculations work?
gov.uk describes two options. You can make a market value election and pay SDLT once, up front, on the full market value of the property, with nothing more to pay when you buy further shares. Or you can pay in stages: SDLT on the first share you buy, and nothing more until you own more than 80% of the property. gov.uk notes the election is often best when the full market value is no more than the SDLT threshold. Which is cheaper depends on how much you expect to buy and when.
Are there exemptions for divorce / inheritance / gift?
Yes (FA 2003 Sch 3). Transfers between spouses or civil partners as part of a divorce, dissolution or separation are exempt (para 3). Taking property under a will or intestacy is exempt (para 3A), as is a variation of a will made within 2 years of the death for no consideration (para 4). A gift with no consideration is exempt (para 1), but if the person receiving the property takes on a mortgage, the debt taken over counts as consideration and SDLT may be due.
What records and supporting documents should I keep?
FA 2003 Sch 10 para 9 requires you to keep the records needed for a correct return - the contract and transfer, plans, and records of payments - until the later of 6 years from the effective date and the end of any HMRC enquiry (or the time HMRC can no longer open one). In practice keep the SDLT5 certificate, the completion statement, a copy of the return, any first-time buyer or replacement-home evidence, and any refund claim.