How is stamp duty calculated in the UK in 2026?
UK stamp duty is charged in bands rather than as a single flat percentage of the purchase price. Each portion of the price falling within a band is taxed at that band's rate, then the amounts are added together. The UK runs three separate stamp duty regimes: SDLT in England and Northern Ireland, LBTT in Scotland, and LTT in Wales — each with different thresholds and rates. First-time buyer relief lifts or eliminates the lower bands for eligible buyers, while a surcharge of 5% (England & NI) or equivalent supplements in Scotland and Wales applies to additional properties such as second homes and buy-to-lets. In England and Northern Ireland the tax must be paid within 14 days of completion; your solicitor usually files the return and pays HMRC on your behalf.
First-time buyer stamp duty relief explained
To qualify for first-time buyer relief, you must never have owned a residential property anywhere in the world, and the property you're buying must be your only or main residence. In England and Northern Ireland, qualifying buyers pay 0% on the first £300,000 and 5% on the portion between £300,001 and £500,000. If the price exceeds £500,000, no relief applies and standard rates kick in across the whole price. In Scotland, LBTT raises the 0% threshold to £175,000 for first-time buyers but standard rates continue above that. Wales offers no first-time buyer relief at all. For joint purchases, every buyer must qualify — buying with a parent or partner who has previously owned property disqualifies the whole purchase.
The 5% additional property surcharge
The additional property surcharge applies to second homes, buy-to-let purchases, holiday homes, and any residential property over £40,000 that is not replacing your main residence. In England and Northern Ireland the surcharge is 5%, added to every band on top of the standard rate. There is a 36-month rule: if you buy a new main home before selling your old one you'll pay the surcharge upfront, but you can reclaim it if you sell the old main home within 36 months. Buying jointly with someone who already owns a property elsewhere triggers the surcharge on the whole purchase, not just your share. Once you know the upfront cost, see our mortgage overpayment calculator to plan your repayments.