Stamp Duty Land Tax (SDLT) is one of the biggest upfront costs of buying a home in England and Northern Ireland. From April 2025, first-time buyer relief thresholds reverted, meaning more buyers now pay SDLT on their first home. Here's exactly what you'll pay in 2026.
2026 SDLT Rates for First-Time Buyers
From April 2025 (when the temporary relief ended), SDLT for first-time buyers is:
- 0%: Up to £300,000
- 5%: £300,001 to £500,000
- Properties above £500,000: standard rates apply (no FTB relief)
Example: On a £350,000 first home, you pay 0% on the first £300,000 and 5% on the remaining £50,000 = £2,500.
- •0% on the first £300,000 for first-time buyers
- •5% on the portion from £300,001 to £500,000
- •No FTB relief on properties above £500,000
- •Compare: non-FTB pays 2% on £125,001–£250,000, 5% on £250,001–£925,000
Who Qualifies as a First-Time Buyer?
HMRC defines a first-time buyer as someone who has never owned a residential property in the UK or abroad. If you're buying with someone who has previously owned a property, neither of you qualifies for first-time buyer relief — the full SDLT rates apply.
SDLT on Second Homes and Buy-to-Let
Additional SDLT surcharges apply to second properties. From October 2024, the surcharge increased to 5% (from 3%). So a buy-to-let purchase at £300,000 faces SDLT of approximately £17,500 rather than the nil/low rate a first-time buyer would pay. This significantly changes the economics of buy-to-let investment.
Budgeting for SDLT
SDLT is due within 14 days of completion. It must come from savings — you can't borrow it as part of your mortgage for a residential purchase. Build it into your buying budget from the start. The HMRC SDLT calculator gives exact figures for any purchase price.
Minimising Your SDLT Bill
Legal ways to reduce your SDLT:
- Allocate value to fixtures and fittings (you don't pay SDLT on movables) — but HMRC scrutinises unreasonably high allocations
- Consider properties just below the £300,000 threshold if you're a first-time buyer
- Shared Ownership purchases pay SDLT only on the share initially purchased
Is SDLT paid at the time of exchange or completion?+
SDLT is due within 14 days of completion (not exchange). Your solicitor will typically calculate and submit the SDLT return on your behalf.
Can SDLT be added to my mortgage?+
No — SDLT must be paid in cash. Some lenders will factor SDLT into affordability calculations, but it cannot be rolled into the mortgage loan itself for residential purchases.
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