SDLT Rates 2026: Complete Guide to Stamp Duty Land Tax

Introduction

Stamp Duty Land Tax (SDLT) is the tax payable on the purchase of land and property in England and Northern Ireland. It is one of the most common — and most frequently miscalculated — elements of any conveyancing transaction.

This guide sets out every SDLT rate currently in force, with worked examples for each category. Whether you are advising on a straightforward residential purchase, a buy-to-let acquisition, a non-resident transaction, or a commercial deal, you will find the applicable rates and thresholds here.

Need a quick calculation? Use our free SDLT Calculator to compute stamp duty for any scenario — accurate to the penny, with a full breakdown of each band.

How SDLT Works: The Basics

SDLT is a progressive, banded tax — similar in structure to income tax. You do not pay one rate on the entire purchase price. Instead, each portion of the price that falls within a particular band is taxed at that band's rate.

For example, if you buy a residential property for £400,000, you do not pay 5% on the full £400,000. You pay 0% on the first £125,000, 2% on the next £125,000, and 5% on the remaining £150,000.

This is an important distinction, and one that clients frequently misunderstand. As a conveyancer, being able to explain the banded structure clearly is part of providing good client service.

When Is SDLT Due?

SDLT is due within 14 days of the completion date (not the exchange date). The return must be filed and the tax paid within this window. Late filing attracts automatic penalties:

• Up to 3 months late: £100 penalty
• More than 3 months late: £200 penalty
• More than 12 months late: additional tax-geared penalties of up to 100% of the SDLT due

Interest also accrues on unpaid SDLT from the filing date at HMRC's current rate.

Who Is the Taxpayer?

The buyer is liable for SDLT. In practice, the buyer's solicitor or conveyancer files the return and arranges payment on the client's behalf. This is why the tax adviser registration requirement (see our registration guide) is so important for conveyancing firms.

Standard Residential Rates

These rates apply to the purchase of residential property by an individual who already owns another property (or is not eligible for first-time buyer relief). They also apply where the purchaser has disposed of their previous main residence but does not qualify for any relief.

Worked Example: Standard Residential Purchase at £350,000

Worked Example: Standard Residential Purchase at £750,000

First-Time Buyer Relief

First-time buyers benefit from more generous nil-rate thresholds. To qualify:

• The buyer must be an individual (not a company)
• The buyer must never have owned an interest in a residential property anywhere in the world
• The property must be purchased for use as the buyer's main residence
• The purchase price must be £625,000 or less

If the purchase price exceeds £625,000, first-time buyer relief is not available at all — the standard residential rates apply in full.

Note: The nil-rate band of £300,000 is significantly more generous than the standard £125,000. This can save first-time buyers up to £6,250 compared to the standard rates.

Worked Example: First-Time Buyer at £425,000

Without first-time buyer relief, SDLT on a £425,000 purchase would be £11,250 — a saving of £5,000.

Joint Purchases

Where two or more people are buying together, all purchasers must qualify as first-time buyers for the relief to apply. If one buyer already owns a property, the relief is lost for the entire transaction.

Additional Property Surcharge (+5%)

The higher rates for additional dwellings (commonly called the "additional property surcharge") apply when the buyer will own two or more residential properties after the transaction.

This typically catches:

• Buy-to-let purchases — buying an investment property while owning a main residence
• Second homes — holiday homes, inherited properties retained alongside a main residence
• Property investors — adding to a residential portfolio

The surcharge is 5 percentage points above the standard residential rates:

Worked Example: Buy-to-Let Purchase at £300,000

Compare this to the standard rate SDLT on £300,000, which is £2,500. The surcharge adds £17,500 to the bill.

Replacing a Main Residence

The surcharge does not apply if the buyer is replacing their main residence — i.e., they are selling their previous main residence and buying a new one. However, the timing must work: the previous residence must be sold within 36 months of buying the new one. If it is not, the surcharge applies and a refund can be claimed once the previous residence is sold.

Purchases Below £40,000

The higher rates do not apply to purchases of residential property where the consideration is below £40,000. This can be relevant for small share transfers or nominal-value transactions.

Non-Resident Surcharge (+2%)

Since 1 April 2021, a 2% surcharge applies to purchases of residential property in England and Northern Ireland by buyers who are not UK resident.

The surcharge is in addition to the standard rates and, where applicable, the additional property surcharge. This means a non-resident buying an additional property pays the standard rate plus 5% plus 2% — a total surcharge of 7 percentage points.

Who Is a Non-Resident?

For SDLT purposes, a buyer is non-resident if they have not been present in the UK for at least 183 days in the 12 months preceding the completion date.

Where there are multiple buyers, the surcharge applies if any of the buyers is non-resident.

Worked Example: Non-Resident First Purchase at £500,000

A non-resident who does not own any other property (so no additional property surcharge, but the non-resident surcharge applies):

A UK resident buying the same property would pay £12,500 — the non-resident surcharge adds £12,500.

Refund for Subsequent UK Residency

If the buyer becomes UK resident within 12 months of the purchase (i.e., they spend 183 days or more in the UK), they can apply for a refund of the 2% surcharge.

Company Purchases of Residential Property

When a company (or other non-natural person) purchases a residential property for more than £500,000, a flat rate of 17% applies to the entire purchase price. This is not a banded rate — it is a single flat rate on the full consideration.

When Does the 17% Rate Apply?

The 17% rate applies where:

• The buyer is a company, partnership with a corporate member, or collective investment scheme
• The property is residential
• The purchase price exceeds £500,000
• None of the exceptions apply

Exceptions

The 17% rate does not apply if the company is:

• A property developer acquiring the property for resale (relief conditions apply)
• A property rental business acquiring the property for its rental portfolio (certain conditions apply)
• Acting as a trustee of a settlement in specific circumstances

Worked Example: Company Purchase at £1,200,000

If the same property were purchased by an individual at standard rates, SDLT would be £53,750. The corporate rate is significantly higher, reflecting HMRC's policy of discouraging corporate ownership of residential property (often used for tax planning or enveloping).

Below £500,000

If a company purchases a residential property for £500,000 or less, the standard residential rates apply (plus the additional property surcharge, since a company purchase always triggers the higher rates).

Commercial and Mixed-Use Rates

Different rates apply to the purchase of non-residential (commercial) property and mixed-use property (i.e., property that is partly residential and partly commercial).

These rates apply to:

• Commercial property: offices, retail premises, industrial units, warehouses, agricultural land
• Mixed-use property: a property with both residential and commercial elements (e.g., a shop with a flat above)
• Land without buildings that is not residential
• Six or more residential properties purchased in a single transaction (treated as non-residential for SDLT purposes)

Worked Example: Commercial Purchase at £600,000

Why Mixed-Use Classification Matters

For buyers of properties with a commercial element, the commercial rates can result in significantly lower SDLT than the residential rates — and the additional property surcharge does not apply to non-residential transactions.

This is why HMRC scrutinises mixed-use claims carefully. The property must genuinely have a non-residential element — for example, working farmland, a commercial unit, or business premises. Simply having an outbuilding or a home office is unlikely to qualify.

Leasehold Transactions

SDLT on leases is a more complex topic that warrants its own guide, but the key points are:

New Leases

SDLT on the grant of a new lease has two components:

1. SDLT on any premium — taxed at the rates above (residential or commercial, as applicable)
2. SDLT on the rent — calculated using the Net Present Value (NPV) of the total rent over the lease term

For residential leases, the NPV nil-rate band is £125,000. Above this, the rate is 1% on the excess.

For commercial leases, the NPV nil-rate band is £150,000. Above this, the rate is 1% on the excess up to £5,000,000, and 2% above £5,000,000.

Lease Assignments

The assignment (transfer) of an existing lease is treated as a purchase of a property interest. SDLT is payable on the consideration for the assignment at the standard rates.

Lease Extensions and Surrenders

Lease extensions and surrenders have specific SDLT rules that depend on the structure of the transaction. In many cases where there is no premium and the rent does not change materially, no SDLT is payable, but a return may still need to be filed.

Reliefs and Exemptions

Several reliefs can reduce or eliminate SDLT liability. The most common include:

Multiple Dwellings Relief (MDR)

Note: Multiple Dwellings Relief was abolished for transactions completing on or after 1 June 2024. It is no longer available. If you are advising on transactions that exchanged before 1 June 2024 but completed after, transitional provisions may apply — seek specialist advice.

Shared Ownership

Shared ownership purchases (typically through a housing association) have a specific SDLT regime. The buyer can choose to either:

• Pay SDLT on the initial share only (with no further SDLT on "staircasing" up to 80%), or
• Pay SDLT on the full market value at the outset (with no further SDLT on any subsequent staircasing)

Group Relief

Where companies within the same corporate group transfer property between themselves, group relief may be available. Strict conditions apply and clawback provisions exist if the companies leave the group within three years.

Charities Relief

Charities purchasing property for charitable purposes may be exempt from SDLT. The exemption is automatic where the conditions are met, but a return must still be filed.

SDLT Rate Summary Table

For quick reference, here is a consolidated table of all current SDLT rates:

Filing Process and Deadlines

The 14-Day Rule

SDLT returns must be filed and the tax paid within 14 days of the effective date of the transaction — which is usually the completion date. This is one of the tightest filing deadlines in UK tax.

In practice, this means your post-completion process must be highly efficient. The clock starts on the day of completion, not the next working day. If completion happens on a Friday afternoon, you have 14 calendar days — not 14 working days — to file.

How to File

SDLT returns can be filed:

• Electronically using HMRC-approved software (the standard approach for most conveyancing firms)
• Online through HMRC's SDLT online service (limited functionality, rarely used by professionals)
• By post using form SDLT1 (slow, not recommended — processing takes significantly longer)

For electronic filing, your firm must be enrolled for SDLT through your Government Gateway or Agent Services Account. From 18 May 2026, your firm must also be registered as a tax adviser — see our registration guide.

The SDLT5 Certificate

Upon successful filing and payment, HMRC issues an SDLT5 certificate. This certificate is essential for Land Registry applications — without it, you cannot register the buyer's title. Electronic filing typically produces the SDLT5 within minutes. Paper filing can take weeks.

Amending a Return

If you discover an error after filing, you can amend an SDLT return within 12 months of the filing date. Amendments can be made through the same software or channel used for the original filing. If the amendment results in additional SDLT being due, interest will be charged from the original filing date.

Common Pitfalls

1. Forgetting the Additional Property Surcharge

The most common error in conveyancing practice is failing to apply the additional property surcharge when the buyer owns other residential property. Always ask the client: "Do you own or part-own any other residential property anywhere in the world?"

2. Miscalculating First-Time Buyer Relief

First-time buyer relief has a hard cap at £625,000. At £625,001, the relief is entirely lost — not tapered. This cliff edge catches some buyers out, particularly in London and the South East.

3. Applying the Wrong Rates to Mixed-Use

If a property genuinely qualifies as mixed-use, the commercial rates apply — which are significantly lower. But HMRC actively challenges mixed-use claims, particularly for residential properties with annexes or outbuildings. Ensure you have a sound basis for any mixed-use claim.

4. Missing the 14-Day Filing Deadline

The SDLT return must be filed within 14 days of completion. This is a tight window, particularly if completion happens late in the day or over a weekend. Have your filing process ready before completion.

5. Incorrect Treatment of Linked Transactions

Where two or more transactions are linked (e.g., buying a house and a separate piece of land from the same seller), they must be aggregated for SDLT purposes. This can push the combined consideration into a higher band.

Calculate SDLT for Any Scenario

Use our free SDLT Calculator to compute stamp duty for any transaction type:

• Standard residential purchases
• First-time buyer purchases
• Additional property purchases
• Non-resident purchases
• Company purchases
• Commercial and mixed-use transactions

The calculator gives you a full band-by-band breakdown, the effective tax rate, and the total SDLT payable — accurate to the penny.

Open the SDLT Calculator →

Further Reading

• Tax Adviser Registration 2026: Everything Conveyancers Need to Know — if your firm files SDLT returns, you must register with HMRC by 18 May 2026
• First-Time Buyer SDLT Relief — eligibility, calculations, and common pitfalls
• Additional Property SDLT Surcharge — the 5% surcharge explained
• Commercial SDLT Rates — non-residential rates, mixed-use, and lease NPV
• SDLT Penalties for Late Filing — the penalty regime and how to appeal
• SDLT Reliefs and Exemptions — every available relief in one reference
• HMRC SDLT Technical Guidance — official HMRC guidance on GOV.UK

This guide was last updated on 16 March 2026. SDLT rates and thresholds are set by HM Treasury and may change at fiscal events (Budgets and Autumn Statements). Always verify current rates before advising clients.