How does First-Time Buyer Relief work and what is the £625,000 cliff edge?

Under Schedule 6ZA to the Finance Act 2003, eligible first-time buyers pay 0% SDLT on purchases up to £425,000 and 5% on the portion between £425,001 and £625,000. Crucially, if the purchase price exceeds £625,000, relief is completely withdrawn: standard residential rates apply to the entire purchase price starting at £250,000. To qualify, you must never have held a major interest in any residential property worldwide.

What is the surcharge for buy-to-let and additional properties (HRAD)?

Under Schedule 4ZA to the Finance Act 2003, purchases of additional residential dwellings (such as buy-to-let properties, second homes, and company acquisitions) with a value of £40,000 or more attract the Higher Rates for Additional Dwellings (HRAD). Following the Autumn Budget 2024, the statutory surcharge is 5% above standard rates across every band: 5% up to £250,000; 10% between £250,001 and £925,000; 15% between £925,001 and £1,500,000; and 17% over £1,500,000.

What is HMRC's 14-day statutory filing and payment deadline?

Under Section 76 of the Finance Act 2003, an official Land Transaction Return (form SDLT1) must be submitted and the full tax paid to HM Revenue & Customs within 14 calendar days of the completion date (the effective date of transaction). Upon successful submission, HMRC issues an electronic SDLT5 certificate, which is required by HM Land Registry to register your legal ownership. Late filing triggers an automatic £100 statutory penalty, rising to £200 after 3 months, alongside daily statutory interest.

How does the 2% Non-UK Resident Stamp Duty Surcharge operate?

Under Section 75A and Schedule 16 to the Finance Act 2021, an additional 2% SDLT surcharge applies to purchasers who are not UK resident for tax purposes. An individual purchaser is considered non-resident if they have not been physically present in the UK for at least 183 days during any continuous 365-day period falling within the 12 months prior to completion. The 2% surcharge applies on top of all existing residential and HRAD rates.

How does Scottish Land and Buildings Transaction Tax (LBTT) differ from SDLT?

In Scotland, SDLT was devolved and replaced by the Land and Buildings Transaction Tax (LBTT) under the Land and Buildings Transaction Tax (Scotland) Act 2013, administered by Revenue Scotland. LBTT thresholds are: 0% up to £145,000; 2% on £145,001 to £250,000; 5% on £250,001 to £325,000; 10% on £325,001 to £750,000; and 12% over £750,000. Scottish first-time buyer relief increases the nil-rate band to £175,000 (saving up to £600). The Scottish Additional Dwelling Supplement (ADS) is 6% across the entire price.

What are the Land Transaction Tax (LTT) rates in Wales?

In Wales, property acquisitions are governed by the Welsh Revenue Authority (WRA) under the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017. Standard residential rates are: 0% up to £225,000; 6% on £225,001 to £400,000; 7.5% on £400,001 to £750,000; 10% on £750,001 to £1,000,000; and 12% over £1,000,000. Wales does not have a separate first-time buyer relief, and additional properties incur Higher Residential Rates starting at 4% from £0.

Can I claim a refund of the 5% higher rate surcharge if I sell my previous home?

Yes. If you pay the 5% HRAD surcharge because you purchase a new main residence before selling your previous home, you can claim a full refund from HMRC under paragraph 3 of Schedule 4ZA to the Finance Act 2003, provided you sell your previous main residence within 36 months of the completion date. You have 12 months from the date of selling your old home (or 12 months from the SDLT return filing date, whichever is later) to submit your repayment claim.

Can Stamp Duty Land Tax be deducted when calculating Capital Gains Tax?

Yes. Under Section 38 of the Taxation of Chargeable Gains Act 1992 (TCGA 1992), Stamp Duty Land Tax (or LBTT / LTT) is classified as an allowable acquisition expenditure. When you eventually sell an investment or second home subject to Capital Gains Tax (CGT), the stamp duty paid at purchase is deducted directly from your gross disposal profit, reducing your taxable capital gain.

Statutory 2026/27 Property Tax Engine (Finance Act 2003)

Stamp Duty Calculator UK

Calculate exact Stamp Duty Land Tax (SDLT) on residential purchases in England and Northern Ireland. Includes First-Time Buyer Relief up to £425,000, the 5% Buy-to-Let / Additional Dwelling Surcharge, and devolved Scotland LBTT and Wales LTT rules.

By AfterTaxUK Editorial TeamFinance Act 2003 & Autumn Budget 202414-Day HMRC SDLT5 Return Deadline

Stamp Duty Land Tax Calculator2026/27 Rates

Statutory Finance Act 2003 Engine • Devolved Scotland LBTT & Wales LTT

HMRC Verified

1. Select UK JurisdictionDevolved Property Taxes

2. Buyer CategoryReliefs & Surcharges

Property Purchase PriceGross Agreed Price

£50k£500k£1m£1.5m£2m+

Quick Presets:

Non-UK Resident Surcharge (+2%)

Section 75A Finance Act 2021: Applies if not present in the UK for at least 183 days during the 12 months prior.

Total Stamp Duty PayableHM

£5,000

Effective Tax Rate: 1.43%

Agreed Purchase Price

£350,000

Total Net Property Cost

£355,000

Strict 14-Day Statutory Submission Deadline

Your conveyancing solicitor must submit your official SDLT return (SDLT5) and transfer the full tax payment to HM Revenue & Customs (HMRC) within 14 calendar days of completion. Late submission triggers an automatic £100 statutory penalty plus daily interest.

Band-by-Band Marginal Tax Waterfall

Progressive Bracket Calculation

Tax Band Tier	Threshold Range	Statutory Rate	Taxable in Band	Tax Payable
Nil-Rate Band	£0 – £250,000	0%	£250,000	£0
Band 2 (£250k–£925k)	£250,001 – £925,000	5%	£100,000	£5,000
Total Stamp Duty Payable:			£350,000	£5,000

Nearby Price Benchmark Comparison

Marginal Stamp Duty on price increments

£-25,000

£325,000

Tax: £3,750

Rate: 1.15%

CurrentSelected

£350,000

Tax: £5,000

Rate: 1.43%

+£25,000

£375,000

Tax: £6,250

Rate: 1.67%

+£50,000

£400,000

Tax: £7,500

Rate: 1.88%

Author: AfterTaxUK Editorial Team • Tax Year: 2026/27 • Published: 6 April 2026

Statutory Authority: Finance Act 2003 Compliant

How Stamp Duty Land Tax (SDLT) Works in 2026/27

Stamp Duty Land Tax (SDLT) is a self-assessed tax payable by the buyer on property and land transactions in England and Northern Ireland under Part 4 of the Finance Act 2003. Stamp duty is charged on a progressive slice system (progressive slabs): you only pay the statutory rate on the specific portion of the purchase price that falls within each tax band, rather than paying a single flat percentage on the total purchase price.

Purchase Price Band	Standard Residential Rate (Moving Home)	First-Time Buyer Rate (Up to £625k)	Additional Home / Buy-to-Let (+5% Surcharge)
Up to £250,000	0%	0%	5%
£250,001 to £425,000	5%	0%	10%
£425,001 to £625,000	5%	5%	10%
£625,001 to £925,000	5%	5% (Standard)	10%
£925,001 to £1,500,000	10%	10%	15%
Over £1,500,000	12%	12%	17%

First-Time Buyer Relief & The £625,000 Cliff Edge

First-Time Buyers' Relief under Schedule 6ZA to the Finance Act 2003 offers substantial financial assistance to people purchasing their first residential home:

Generous 0% Nil-Rate Band Up to £425,000

First-time buyers pay £0 Stamp Duty on properties purchased up to £425,000. For properties priced between £425,001 and £625,000, you pay 5% only on the amount above £425,000. This delivers a maximum tax saving of £8,750 compared to standard rates.

Strict £625,000 Price Cap (No Relief Above £625k)

If your agreed purchase price exceeds £625,000 by even £1, all first-time buyer relief is lost. You cannot claim the £425,000 nil-rate band: your entire purchase is taxed under standard rates (£0–£250k at 0%, £250k–£925k at 5%), resulting in an immediate £8,750 tax jump.

Statutory Eligibility Condition:

To qualify as a first-time buyer, all purchasers named on the mortgage and title deeds must have never owned an interest in a residential property anywhere in the world (including inherited properties, trusts, and overseas homes). If a couple purchases together and one partner previously owned a home, First-Time Buyer Relief cannot be claimed.

Higher Rates for Additional Dwellings (HRAD) & Buy-to-Let

If you purchase a second home, holiday home, or buy-to-let residential investment while already owning another property (worth £40,000 or more), you are subject to the Higher Rates for Additional Dwellings (HRAD) under Schedule 4ZA to the Finance Act 2003.

Statutory 5% Surcharge (Autumn Budget 2024 Update)

Following the Autumn Budget 2024, the statutory HRAD surcharge was increased from 3% to 5% for all completions taking place on or after 31 October 2024. Consequently, buy-to-let investors and second home buyers pay an effective 5% on the initial £0–£250,000 band, 10% on £250,001–£925,000, 15% on £925,001–£1,500,000, and 17% on any amount exceeding £1,500,000.

36-Month Main Residence Replacement Refund: If you purchase your new home before selling your previous main residence, you must pay the 5% surcharge upfront. However, if you sell your previous main residence within 36 months, you can submit a repayment claim to HMRC under Paragraph 3 Schedule 4ZA FA 2003 for a 100% refund of the extra surcharge paid.

Devolved Property Taxes: Scotland (LBTT) & Wales (LTT)

Stamp duty powers have been fully devolved to the Scottish and Welsh Parliaments. If you are purchasing in Scotland or Wales, HMRC SDLT does not apply:

Scotland: Revenue Scotland LBTTLBTT Act 2013

£0 to £145,000: 0% Nil-Rate Band
£145,001 to £250,000: 2%
£250,001 to £325,000: 5%
£325,001 to £750,000: 10%
Over £750,000: 12%
First-Time Buyers: Nil-rate band raised to £175,000 (saves up to £600).
Additional Dwelling Supplement (ADS): 6% surcharge applied across total price.
Filing Deadline: 30 calendar days to submit return and payment.

Wales: Welsh Revenue Authority LTTLTT Act 2017

£0 to £225,000: 0% Nil-Rate Band
£225,001 to £400,000: 6%
£400,001 to £750,000: 7.5%
£750,001 to £1,000,000: 10%
Over £1,000,000: 12%
First-Time Buyers: No separate relief (standard £225k nil rate applies).
Higher Residential Rates: Starts at 4% on £0–£180k, up to 16% over £1m.
Filing Deadline: 30 calendar days to submit return and payment.

Conveyancing, 14-Day Deadline & Capital Gains Offsets

The 14-Day Completion Rule: In England and Northern Ireland, Section 76 of the Finance Act 2003 establishes a mandatory 14-day window from the effective date of transaction (normally completion day) to submit the SDLT return and pay the tax in full. While your conveyancer or solicitor typically handles submission electronically, legal liability for accurate reporting and payment rests strictly with the purchaser. Failure to file on time triggers an automatic £100 fixed penalty (doubling to £200 if over 3 months late), plus statutory daily interest under Section 87 TMA 1970.

Offsetting SDLT Against Capital Gains Tax (CGT): Under Section 38 of the Taxation of Chargeable Gains Act 1992 (TCGA 1992), Stamp Duty Land Tax (or LBTT / LTT) is recognised as an incidental acquisition cost. If you ever dispose of an investment property or second home, you can add the full stamp duty paid to your base acquisition cost. This reduces your net taxable capital gain pound-for-pound, lowering your future CGT bill at 18% or 24%. Keep your completion statement and HMRC SDLT5 certificate permanently in your tax archives.

Explore Connected UK Property & Wealth Calculators

Planning your overall property transaction? Model the Capital Gains Tax on disposing of an existing asset using our Capital Gains Tax Calculator, calculate annual landlord tax liabilities under Section 24 with our Rental Income Tax Calculator, or check your local municipal property tax using our Council Tax Calculator.

Stamp Duty Land Tax FAQs (2026/27)

Statutory questions and answers on SDLT rates, first-time buyer relief, buy-to-let surcharges, and devolved LBTT/LTT.

Under Part 4 of the Finance Act 2003, residential property purchases in England and Northern Ireland are taxed on a progressive tiered structure: 0% on the first £250,000; 5% on the portion between £250,001 and £925,000; 10% on the portion between £925,001 and £1,500,000; and 12% on any amount above £1,500,000. These rates apply when moving to a new main residence.

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Check the property and jurisdiction

This Stamp Duty Land Tax estimate concerns England and Northern Ireland. Wales uses LTT and Scotland uses LBTT. Residential, mixed-use and commercial property use different rules.

Check additional-property, non-resident, replacement-home, linked-transaction and relief conditions. A label or mixed-use scenario does not establish the legal classification of a real purchase.

Check the rules for your circumstances

Official guidance supports the rules described here; it does not approve or certify this calculator. Confirm dates, eligibility and unsupported cases before making a financial decision.