Stamp Duty Land Tax (SDLT) 2026/27: rates, the additional dwellings surcharge, and first-time buyer relief

SDLT rates 2026/27 (England and Northern Ireland)

Stamp Duty Land Tax (SDLT) applies to property purchases in England and Northern Ireland. The rates run on bands and the rate depends on three things: the price paid, whether the buyer is an owner-occupier or buying an additional dwelling, and whether the buyer is UK-resident.

A further 2% non-resident surcharge applies to buyers who have not been UK-resident for at least 183 days in the 12 months before purchase. It sits on top of the standard rates and any additional dwelling surcharge.

What changed recently

The 2024/25 and 2025/26 tax years saw two important changes to SDLT:

• October 2024: the additional dwellings surcharge rose from 3% to 5%. A landlord buying a £300,000 BTL went from a £20,000 SDLT bill to £29,000 overnight.
• April 2025: the temporary nil-rate band ended. The standard nil-rate band reverted to £125,000 (from £250,000) and the first-time buyer threshold reverted to £300,000 (from £425,000). This added several thousand pounds to many transactions.

The rates in the table above reflect those changes and are stable for 2026/27.

Worked example: BTL at £300,000

Common case for our landlord clients. A UK-resident investor buys a buy-to-let property in Birmingham for £300,000:

• £0 to £125,000 at 5% = £6,250
• £125,001 to £250,000 at 7% = £8,750
• £250,001 to £300,000 at 10% = £5,000
• Total SDLT: £20,000 (6.67% of price)

For comparison, an owner-occupier buying the same £300,000 property would pay £5,000 (£0 + £2,500 + £2,500). So the additional dwellings surcharge adds £15,000 to the bill, or half as much again on top of the standard tax. Worth modelling before offers are made.

Worked example: BTL at £500,000

• £0 to £125,000 at 5% = £6,250
• £125,001 to £250,000 at 7% = £8,750
• £250,001 to £500,000 at 10% = £25,000
• Total SDLT: £40,000 (8% of price)

For a non-resident buying the same £500,000 BTL, add the 2% surcharge across all bands: £42,500 + £10,000 (2% of £500,000) = £50,000 total.

First-time buyer relief, what is left of it

The first-time buyer relief has been reduced since April 2025 but is still useful for many buyers:

• 0% SDLT on the first £300,000
• 5% on the slice between £300,001 and £500,000
• No relief at all if the purchase price exceeds £500,000 (full standard rates apply to the whole price)

To qualify:

• The buyer must have never owned a residential property anywhere in the world
• The property must be the buyer's main residence (not BTL)
• The £500,000 ceiling is per transaction, not per buyer; joint purchases must collectively stay below £500,000

So a first-time buyer paying £350,000 saves £2,500 in SDLT (£0 + £2,500 versus the standard £5,000). At £500,000 purchase price, the saving is £10,000. Above £500,000 it drops to zero.

Companies buying residential property

Limited companies buying residential property pay the additional dwellings rates from £0 (so 5% on the first slice), plus a special rule for high-value purchases.

For purchases over £500,000, a flat 17% SDLT applies unless the company qualifies for an exemption (the most common being a genuine letting business, where the property will be rented out to unconnected tenants for at least 3 years). The 17% rate replaces, rather than adds to, the standard rates.

Companies do not get first-time buyer relief and cannot use multiple dwellings relief from June 2024 onwards. They do pay the 2% non-resident surcharge if controlled by non- resident shareholders. We model the company vs personal ownership question for every new property purchase our landlord clients bring to us.

When SDLT can be reduced

• Mixed-use property. Property used partly for commercial purposes (a shop with flat above, a small mixed- use site) is taxed under the non-residential rates which start lower and cap at 5%. The boundary is increasingly policed by HMRC; the commercial use must be genuine and substantial.
• Six-or-more residential properties in one transaction. Counts as non-residential, qualifies for non-residential rates. Useful for portfolio-scale purchases.
• Sole-or-main residence replacement. If you sell your old main residence within 36 months of buying the new one, the additional dwellings surcharge paid on the new home can be refunded. Worth setting a calendar reminder.
• Demolition and rebuild. Properties that are not suitable for use as a dwelling at the time of purchase (genuine derelicts) can sometimes attract non-residential rates. Strict tests apply.

Filing and paying SDLT

Your solicitor or licensed conveyancer normally files the SDLT return (SDLT1) on the day of completion and remits the tax to HMRC from completion funds. Two important points:

• The legal liability is yours, not your solicitor's. If the return is late or the wrong figure is paid, HMRC comes to you.
• The deadline is 14 days from completion. Late filing attracts £100 immediately, then escalating penalties at 3 months, 6 months, and 12 months. Interest also runs on any unpaid tax.

Scotland and Wales: separate regimes

SDLT only applies in England and Northern Ireland. The devolved equivalents:

• Scotland: LBTT (Land and Buildings Transaction Tax). Different bands; the additional dwelling supplement is 6% (vs SDLT's 5%). Set by the Scottish government.
• Wales: LTT (Land Transaction Tax). Different bands; the higher residential rates surcharge is 5%. Set by the Welsh government.

The arithmetic principles are the same, but the figures differ. If you are buying outside England or NI, use the devolved authority's official calculator rather than the SDLT rates above.