Stamp Duty After April 2025: New SDLT Bands, the 5% Surcharge and First-Time Buyer Rules
If you bought a property in England or Northern Ireland before 1 April 2025, you paid a different amount of stamp duty than you would today. The temporary SDLT thresholds introduced in 2022 ended on 31 March 2025, and the bands reverted to lower thresholds. The 5% additional-property surcharge (raised from 3% in October 2024) is still in force.
This post walks through the SDLT bands now applying in England and Northern Ireland, the more limited first-time buyer relief, and the £30,000 surcharge wedge on any second property. Scotland (LBTT) and Wales (LTT) have their own systems, which we cover briefly at the end.
Use the Stamp Duty Calculator for any property price, or the Buy-to-Let Calculator for second-property purchases including the surcharge.
The SDLT bands now (England & Northern Ireland, 2026/27)
These have been in force since 1 April 2025:
| Property price | SDLT rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| £1,500,001+ | 12% |
These bands are marginal — you pay the rate only on the slice of price within each band, not the whole purchase price.
A £350,000 main home for a non-first-time-buyer:
- £0 on the first £125,000.
- 2% × £125,000 = £2,500 on the next slice (£125,001 to £250,000).
- 5% × £100,000 = £5,000 on the next slice (£250,001 to £350,000).
- Total SDLT: £7,500.
For comparison, before the April 2025 change the nil-rate threshold was £250,000. The same £350,000 purchase would have cost £5,000. The April 2025 change adds £2,500 of SDLT for typical mid-market purchases — and increases it more sharply for purchases in the £125,000 to £250,000 range.
First-time buyer relief — narrower than before
First-time buyers (FTBs) get a higher nil-rate threshold, but the rules were tightened on 1 April 2025:
| FTB property price | SDLT rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% on the slice |
| Above £500,000 | No FTB relief at all |
That last row is the critical one. If your first home costs more than £500,000, you get no first-time buyer relief — you pay the standard non-FTB SDLT on the entire purchase, just like everyone else. Before April 2025, this cliff was at £625,000.
So a first-time buyer paying £499,999:
- £0 on the first £300,000.
- 5% × £199,999 = £9,999.95 SDLT.
A first-time buyer paying £500,001 (the same property, £2 more):
- 0% on the first £125,000.
- 2% × £125,000 = £2,500.
- 5% × £250,001 = £12,500.05.
- Total: £15,000.05.
A £2 price increase costs £5,000 extra in SDLT because the FTB relief disappears. This creates a strong incentive to either:
- Negotiate the price below £500,000, or
- Accept that FTB relief isn't available and treat the deal as a standard purchase.
There is no smoothing or taper around the £500,000 line. It is a cliff edge.
To qualify as a first-time buyer at all, all purchasers on the title must never have owned a residential property anywhere in the world. Inherited properties count too — if you've inherited a share of a property in the past, you're not a first-time buyer for SDLT.
The 5% additional-property surcharge
If you're buying a second property (a buy-to-let, a holiday home, or any property you already own one of), you pay an additional 5% on top of the standard SDLT rates on the entire purchase price.
This surcharge rose from 3% to 5% on 31 October 2024. So for a £350,000 buy-to-let purchase:
- Standard SDLT (as worked above): £7,500.
- 5% surcharge × £350,000 = £17,500.
- Total SDLT: £25,000.
Compared to a main-home purchase at the same price, the surcharge alone adds £17,500. Compared to the pre-October-2024 3% rate, you're paying £7,000 more in surcharge — a meaningful change for property investors that has visibly cooled the BTL market over the last 18 months.
The surcharge applies to:
- Any second residential property anywhere in the world, regardless of value.
- Property bought by a limited company (even the first one), because companies cannot be "main residences".
- Property bought jointly where any joint owner already owns another residential property.
There's a 36-month window to claim a refund of the surcharge if you're replacing a main home but haven't yet sold the old one. You pay the surcharge at completion of the new purchase, then claim it back once the old main residence sells.
Worked examples
1. First-time buyer, £325,000 flat.
- £0 on the first £300,000.
- 5% × £25,000 = £1,250.
- Total SDLT: £1,250.
2. Home mover, £600,000 family house.
- £0 on the first £125,000.
- 2% × £125,000 = £2,500.
- 5% × £350,000 = £17,500.
- Total SDLT: £20,000.
3. Buy-to-let in London, £450,000.
- Standard SDLT: £125k × 0% + £125k × 2% + £200k × 5% = £12,500.
- 5% surcharge on £450,000 = £22,500.
- Total SDLT: £35,000.
4. £1.2m main home, non-FTB.
- £0 on the first £125,000.
- 2% × £125,000 = £2,500.
- 5% × £675,000 = £33,750.
- 10% × £275,000 = £27,500.
- Total SDLT: £63,750.
5. £1.2m purchase through a limited company (BTL portfolio).
- Standard SDLT: £63,750 (as above).
- 5% surcharge on £1.2m = £60,000.
- Total SDLT: £123,750.
Scotland: LBTT
Land and Buildings Transaction Tax replaces SDLT in Scotland. The residential bands are:
| Property price | LBTT rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| £750,001+ | 12% |
First-time buyer relief raises the nil-rate threshold to £175,000. The Additional Dwelling Supplement (ADS) — Scotland's equivalent of the SDLT surcharge — is 8% on the full purchase price for second properties. That's higher than the English 5% surcharge, which means BTL purchases in Scotland are punitively taxed compared to England.
Wales: LTT
Land Transaction Tax has different bands again:
| Property price | LTT rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1,500,000 | 10% |
| £1,500,001+ | 12% |
Wales has no first-time buyer relief — instead, the higher £225,000 nil-rate threshold applies to everyone. The Higher Residential Rates (HRR) surcharge for second homes starts at 5% on the lowest band and rises with the standard bands, applied as an addition.
Practical points to model
When budgeting for a property purchase in England or Northern Ireland, the moving parts to consider:
-
The 5% surcharge cliff for limited-company BTL. If you're considering company-held vs individual-held property, the SDLT cost is identical (companies always pay the surcharge), but the income tax picture differs significantly. The Buy-to-Let Calculator covers the Section 24 mortgage interest restriction that affects this trade-off.
-
The £500,000 first-time-buyer cliff. If you're a first-time buyer between £490,000 and £510,000, every £1,000 of price you can negotiate off matters disproportionately.
-
The 36-month sale-replacement window. If you're moving home but renting out the old one short-term while it's on the market, you'll pay the 5% surcharge — but you can claim it back later if the old property sells as your former main residence within 36 months.
-
SDLT is paid on completion, not exchange. Budget for it as part of your day-of-completion cash needs, alongside legal fees and the deposit balance.
-
Mortgage affordability vs SDLT. A higher purchase price means more SDLT and a bigger mortgage deposit. The Mortgage Affordability Calculator shows what lenders will offer at your income; combine it with the Stamp Duty Calculator for the all-in cash needed.
The bottom line
SDLT in 2026/27 for England and Northern Ireland uses the post-April-2025 bands: 0% to £125k, 2% to £250k, 5% to £925k, 10% to £1.5m, 12% above. First-time buyer relief applies only to purchases of £500,000 or less, with a 0%/5% structure. Second-property purchases pay 5% on top of all bands.
The combined effect of the April 2025 threshold drop and the October 2024 surcharge rise has made buying a second property in England materially more expensive than it was 18 months ago. For first-time buyers, the £500,000 cliff is the single biggest planning factor.
For property-specific scenarios, run the Stamp Duty Calculator. For investment property analysis including SDLT, Section 24 and yield, use the Buy-to-Let Calculator.
This article is for general guidance only and is not personalised tax or legal advice. Property transactions have complex tax implications; consult a solicitor and a qualified tax adviser before completing.