Stamp Duty Land Tax reference 2026: rates, reliefs and examples

Stamp Duty Land Tax (SDLT) rules can change, so this reference is dated and limited to the rates, thresholds and reliefs verified against GOV.UK in August 2026. Residential SDLT thresholds and rates changed on 1 April 2025, and no further threshold change had been published on GOV.UK as of 9 August 2026.

Rates at a glance (August 2026)

For standard residential purchases, the threshold listed here is £125,000. For first-time buyers buying a property worth £500,000 or less, the threshold listed here is £300,000. The higher rates for additional properties include a 5% surcharge in 2026. SDLT consideration can include the transfer of a debt, including the value of any outstanding mortgage.

First-time buyer relief

First-time buyer relief means no SDLT up to £300,000, then 5% on the portion from £300,001 to £500,000, with no relief if the price is over £500,000. For shared ownership, first-time buyers can claim relief where the market value is £500,000 or less, whether they choose a market value election or pay in stages, and the relief also covers the rent. The relief does not apply when buying further shares through staircasing.

The 5% surcharge

The higher SDLT rates for additional properties include a 5% surcharge in 2026, following an increase from 3% to 5% on 31 October 2024. You do not pay the extra 5% on a replacement main residence if your previous main home was sold within 36 months of completing the new purchase; otherwise the higher rates apply first and a refund can be claimed later. The higher rates are charged on every slice of the price, so the 5% surcharge also removes the nil-rate band on the first £125,000.

Worked example: if you already own a home and complete on an additional property for £300,000 on or after 1 April 2025, the higher rates apply to every slice. The SDLT due is 5% on the first £125,000 (£6,250), plus 7% on the portion from £125,001 to £250,000 (£8,750), plus 10% on the final £50,000 (£5,000), a total of £20,000. The same £300,000 as a first or only home would attract no SDLT up to £125,000, 2% on the next £125,000 (£2,500) and 5% on the final £50,000 (£2,500), so £5,000 in total.

Shared ownership rules

For qualifying shared ownership leases granted by an approved body such as a housing association or local authority, there are two ways to pay SDLT: a one-off payment based on total market value, known as a market value election, or paying any SDLT due in stages. With a market value election, SDLT is paid once as if the property was bought outright and no further SDLT is due on later staircasing; the election is irrevocable and can be made up to 12 months after the filing date by amending the SDLT return. If SDLT is paid in stages, HMRC first charges SDLT on the premium for the grant of the lease, SDLT is worked out each time a further share is bought, and those transactions count as linked transactions. On staircasing, no SDLT is due until the buyer’s share exceeds 80%; once it does, a return is filed and SDLT is paid on the transaction that took the share over 80% and any later transactions.

Filing and payment

An SDLT return must be sent to HMRC and the tax paid within 14 days of completion. Penalties and interest apply if the return or payment is late.

Key facts

Source: GOV.UK - SDLT: residential property rates — Guidance checked September 2026

Source: GOV.UK - SDLT: higher rates for additional dwellings — Guidance checked September 2026

Source: GOV.UK - SDLT: shared ownership property — Guidance checked August 2026

Source: HMRC - SDLT: shared ownership property — Guidance checked August 2026