Stamp Duty Land Tax is usually the largest single transaction cost a buyer faces in England and Northern Ireland, and it has changed materially in the last two years. The temporary thresholds introduced in September 2022 expired on 31 March 2025, the surcharge on additional dwellings rose from 3% to 5% in October 2024, and Multiple Dwellings Relief was abolished in June 2024.
The practical effect is that buying in 2026 costs more in SDLT than at any point between 2020 and 2025, and a great deal of published guidance still quotes thresholds that no longer exist. This is a summary of where the rates actually stand.
Work out your own figure first: our Stamp Duty (SDLT) calculator applies the current rates, including first-time buyer relief and the additional dwellings surcharge.
Standard residential rates
For completions on or after 1 April 2025, SDLT is charged on the slice of the price falling in each band, not on the whole price at one rate:
| Portion of purchase price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
On a £600,000 house, that produces £20,000: nothing on the first £125,000, £2,500 on the next £125,000, and £17,500 on the balance.
First-time buyer relief
First-time buyers pay nothing on the first £300,000 and 5% on the portion between £300,001 and £500,000. Above £500,000 the relief is lost entirely and standard rates apply to the whole purchase.
Note the cliff edge. At £500,000 a first-time buyer pays £10,000. At £500,001 the relief disappears and the bill becomes £15,000. That £1 of price costs £5,000 of tax, which is worth knowing before agreeing a figure.
The earlier thresholds of £425,000 and £625,000 no longer apply. Every buyer in the transaction must qualify, and a first-time buyer is someone who has never owned a residential property anywhere in the world.
Additional dwellings: the 5% surcharge
Anyone who will own more than one residential property after completion pays 5 percentage points on top of every band, including the nil-rate band. The surcharge applies where the additional property costs more than £40,000.
| Portion of purchase price | Standard | Additional dwelling |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1,500,000 | 10% | 15% |
| Above £1,500,000 | 12% | 17% |
On that same £600,000 purchase, an investor or second-home buyer pays £50,000 rather than £20,000. The surcharge rose from 3% to 5% on 31 October 2024, so anyone working from a 3% assumption is understating the cost by 2% of the entire purchase price — £12,000 on this example.
Non-UK residents pay a further 2% on top, giving a combined 7% uplift for a non-resident buying an additional dwelling.
Two changes that catch investors out
Multiple Dwellings Relief has gone. It previously allowed a buyer acquiring two or more dwellings in one transaction to calculate SDLT on the average price per dwelling, subject to a minimum effective rate of 1%. HMRC’s Stamp Duty Land Tax Manual confirms it has been abolished for transactions which complete, or substantially perform, on or after 1 June 2024, subject to narrow transitional rules (SDLTM29940). That protection was limited to contracts exchanged on or before 6 March 2024 and is now effectively spent. Any appraisal built on an MDR assumption needs redoing.
The six-property rule survives. Under section 116(7) of the Finance Act 2003, a purchase of six or more dwellings in a single transaction may be treated as non-residential, and the non-residential rates — which top out at 5% and carry no surcharge — can be materially cheaper. This is a genuine planning point on portfolio acquisitions and is separate from MDR.
Where valuation comes into it
SDLT is charged on chargeable consideration, which is not always the price on the contract.
On a transfer between connected persons — a parent to a child, or an individual to their own company — the transaction is treated for tax purposes as taking place at market value. Where a share of a mortgage is assumed, that assumption is itself consideration. Both situations need a defensible market value rather than a figure agreed within the family, and that is a Red Book valuation question. We cover this in more detail in our case study on transfers of equity between connected parties.
Mixed-use property is the other area where the figure moves. A building with both residential and commercial elements may attract non-residential rates on the whole, which changes the arithmetic considerably. Whether it qualifies turns on the facts of the property, not on how the parties describe it.
Deadlines
An SDLT return must be filed and the tax paid within 14 days of the effective date of the transaction, which is usually completion. The return is required even where no tax is due because a relief applies.
Frequently asked questions
What is the current stamp duty threshold?
£125,000 for standard residential purchases in England and Northern Ireland, reverting from the temporary £250,000 on 1 April 2025. First-time buyers pay nothing up to £300,000 provided the purchase price does not exceed £500,000.
How much is the stamp duty surcharge on a second home?
5 percentage points on top of every band, applied to the whole purchase price where the additional property costs more than £40,000. It rose from 3% on 31 October 2024. Non-UK residents pay a further 2%.
Do first-time buyers pay stamp duty?
Not on the first £300,000, and 5% between £300,001 and £500,000. Above £500,000 the relief is lost completely and standard rates apply to the entire price, so the tax jumps by £5,000 at that threshold.
Is Multiple Dwellings Relief still available?
No. It was abolished for transactions completing on or after 1 June 2024. The separate rule treating a purchase of six or more dwellings in one transaction as non-residential still applies.
Check your figure
Use our Stamp Duty (SDLT) calculator for a band-by-band breakdown on your own purchase price, including first-time buyer relief and the additional dwellings surcharge.
Rates are set by legislation and can change at any Budget. This article reflects the position as at August 2026, and figures should be confirmed with your solicitor before exchange. We are chartered surveyors and RICS Registered Valuers, not tax advisers — where a transaction requires a market value for SDLT, capital gains tax or inheritance tax purposes, that is work we do, and we act alongside your accountant rather than in place of them.
Call 020 7373 7373 or email info@blakessurveyors.com.
