Understanding Stamp Duty in 2026: A Complete Guide for Buyers

Stamp Duty Land Tax (SDLT) remains one of the largest transaction costs for buyers in England. Understanding the current rates and the thresholds that trigger higher bands is essential planning for any purchase, particularly at the prime end of the market.

For standard residential purchases, SDLT is charged at 0% on the first £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 £1.5m, and 12% on anything above £1.5m.

First-time buyers benefit from enhanced relief, paying no SDLT on the first £300,000 of a purchase up to £500,000. Beyond that threshold, standard rates apply, meaning first-time buyer relief phases out entirely for purchases above £500,000.

Purchasers of additional residential properties — buy-to-let investments, holiday homes or second residences, pay a 5% surcharge on top of standard rates at every band. For a £1m additional property, this adds £50,000 to the SDLT bill. Careful structuring of ownership can sometimes mitigate the exposure; we recommend taking specialist tax advice before exchange.

Our stamp duty calculator on the home page provides an instant estimate based on 2026 rates. For complex situations, including those involving trusts, company purchases or non-UK residents,  please speak to a qualified conveyancer or tax adviser.