Stamp Duty
How much stamp duty do I pay in 2026?
From 1 April 2025 the residential SDLT thresholds in England and Northern Ireland reverted to their pre-2022 levels. The nil-rate band is now £125,000, with 2% on the slice from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5m and 12% above £1.5m, as set out by HMRC.
First-time buyers pay nothing up to £300,000 and 5% on the slice up to £500,000, provided the price does not exceed £500,000. Buyers of an additional dwelling pay a 5% surcharge on top of each band — raised from 3% in October 2024. Non-UK residents pay a further 2%.
Scotland uses LBTT and Wales uses LTT, both with different bands. For an exact figure, run the price through the Homedata stamp duty calculator.
What this means in practice
On a £450,000 home in Reading bought as a main residence by an existing homeowner, SDLT is £0 on the first £125,000, £2,500 (2%) on the £125,000–£250,000 slice, and £10,000 (5%) on the £200,000 from £250,001 to £450,000 — total £12,500. A first-time buyer at the same price pays £0 up to £300,000 and £7,500 (5%) on the remaining £150,000, total £7,500. A buy-to-let investor adds the 5% surcharge on the full price: £12,500 + £22,500 = £35,000. The surcharge alone on a £450k BTL outweighs an entire year's gross rent at a 5% yield.
Related questions
Can I reclaim the additional dwellings surcharge?
Yes, where you bought the new home before selling the previous main residence. HMRC refunds the 5% surcharge if you sell the old main residence within 36 months of completing the new purchase. Apply through the SDLT16 form within 12 months of the sale or 12 months of the SDLT filing deadline, whichever is later. The refund is paid by BACS, typically within 15 working days.
Does mixed-use property attract residential SDLT rates?
No. A property with both residential and non-residential elements (a flat above a shop, a farm with farmhouse and farmland) is taxed at the non-residential SDLT rates: 0% to £150,000, 2% to £250,000, 5% above. The non-residential element must be genuine — HMRC has tightened scrutiny since the Hyman tribunal cases. Buying a country house with paddocks does not automatically count as mixed-use; the paddocks need to be in commercial agricultural use at the date of purchase.
Related reading
Building with UK property data?
Homedata returns 29 million UK properties — UPRN, EPC, Land Registry, risk — keyed by a single ID. Free tier, no card.
Get a free API key