Stamp duty explained: SDLT, LBTT and LTT (2026/27)

When you buy a property in the UK, you pay a land transaction tax — but the name and rules depend on where the property is located. England and Northern Ireland use Stamp Duty Land Tax (SDLT), Scotland uses Land and Buildings Transaction Tax (LBTT), and Wales uses Land Transaction Tax (LTT).

All three use a banded (slice) system — you pay each rate only on the portion of the price that falls in each band, not on the whole price.

Not financial advice. Rates are sourced from HMRC, Revenue Scotland, and the Welsh Revenue Authority. Always consult a solicitor for your specific transaction. Sources: gov.uk/stamp-duty-land-tax, revenue.scot, gov.wales/land-transaction-tax-rates-and-bands.

1. SDLT — England and Northern Ireland

The current SDLT rates for residential property have applied from 1 April 2025:

Standard rates (main residence, home-mover)

| Price slice | Rate | |---|---| | £0 – £125,000 | 0% | | £125,001 – £250,000 | 2% | | £250,001 – £925,000 | 5% | | £925,001 – £1,500,000 | 10% | | £1,500,000+ | 12% |

Example: £400,000 purchase (standard)

• 0% on £125,000 = £0
• 2% on £125,000 = £2,500
• 5% on £150,000 = £7,500
• Total SDLT: £10,000

First-time buyer relief (England and NI)

First-time buyers who are buying their main residence pay reduced rates:

• 0% on up to £300,000
• 5% on the portion from £300,001 to £500,000

Critical rule — the £500,000 cliff: If the purchase price exceeds £500,000, first-time buyer relief is withdrawn entirely. You pay standard SDLT rates on the full price.

| Purchase price | FTB SDLT | Standard SDLT | Saving | |---|---|---|---| | £300,000 | £0 | £5,000 | £5,000 | | £425,000 | £6,250 | £8,750 | £2,500 | | £500,000 | £10,000 | £15,000 | £5,000 | | £500,001 | £15,000 (relief gone) | £15,000 | £0 |

At £500,001 you pay £5,000 more than at £500,000. If you are close to the £500,000 threshold, the SDLT saving from negotiating the price below it can be significant.

Source: gov.uk/stamp-duty-land-tax/first-time-buyers.

Additional property (HRAD) — England and NI

Buying a second home or buy-to-let property? The Higher Rates for Additional Dwellings (HRAD) surcharge adds 5 percentage points to each SDLT band (applies when purchase price ≥ £40,000 and you will own two or more dwellings after completion):

| Price slice | Standard rate | HRAD rate | |---|---|---| | £0 – £125,000 | 0% | 5% | | £125,001 – £250,000 | 2% | 7% | | £250,001 – £925,000 | 5% | 10% | | £925,001 – £1,500,000 | 10% | 15% | | £1,500,000+ | 12% | 17% |

Example: £500,000 additional property:

• 5% on £125,000 = £6,250
• 7% on £125,000 = £8,750
• 10% on £250,000 = £25,000
• Total SDLT: £40,000 (versus £15,000 for a standard home-mover)

If you are replacing your main residence (sold the old one within 36 months or sell it within 36 months of the new purchase), the HRAD surcharge does not apply.

2. LBTT — Scotland

Scotland's Land and Buildings Transaction Tax (LBTT) applies to residential property purchases in Scotland. The rates are set by the Scottish Parliament and were frozen for 2026/27:

Standard LBTT rates

| Price slice | Rate | |---|---| | £0 – £145,000 | 0% | | £145,001 – £250,000 | 2% | | £250,001 – £325,000 | 5% | | £325,001 – £750,000 | 10% | | £750,000+ | 12% |

Example: £500,000 (Scotland, standard):

• 0% on £145,000 = £0
• 2% on £105,000 = £2,100
• 5% on £75,000 = £3,750
• 10% on £175,000 = £17,500
• Total LBTT: £23,350

First-time buyer relief in Scotland

Scottish first-time buyers get a higher nil-rate band raised to £175,000 (rest of the bands unchanged). There is no upper price cap — unlike England's £500,000 cliff. The maximum saving is £600 (2% on the £30,000 difference between £145,001–£175,000).

Additional Dwelling Supplement (ADS) — Scotland

The ADS applies when you buy an additional dwelling at a price of £40,000 or more. Unlike England's HRAD (which adds percentage points per band), Scotland's ADS is a flat 8% on the full purchase price, added on top of the banded LBTT:

Example: £250,000 additional property in Scotland:

• LBTT: 0% on £145,000 + 2% on £105,000 = £2,100
• ADS: 8% × £250,000 = £20,000
• Total: £22,100

Source: revenue.scot/taxes/land-buildings-transaction-tax/additional-dwelling-supplement.

3. LTT — Wales

The Land Transaction Tax (LTT) in Wales uses different bands from both England and Scotland. There is no first-time buyer relief in Wales.

Main LTT rates (standard purchase)

| Price slice | Rate | |---|---| | £0 – £225,000 | 0% | | £225,001 – £400,000 | 6% | | £400,001 – £750,000 | 7.5% | | £750,001 – £1,500,000 | 10% | | £1,500,000+ | 12% |

Example: £500,000 (Wales, standard):

• 0% on £225,000 = £0
• 6% on £175,000 = £10,500
• 7.5% on £100,000 = £7,500
• Total LTT: £18,000

Higher rates (additional property) — Wales

Wales uses a standalone table for additional property purchases — it replaces the main rates entirely (it is not a surcharge like England's HRAD):

| Price slice | Rate | |---|---| | £0 – £180,000 | 5% | | £180,001 – £250,000 | 8.5% | | £250,001 – £400,000 | 10% | | £400,001 – £750,000 | 12.5% | | £750,001 – £1,500,000 | 15% | | £1,500,000+ | 17% |

Source: gov.wales/land-transaction-tax-rates-and-bands.

4. Side-by-side comparison

| Purchase price | SDLT (England) | LBTT (Scotland) | LTT (Wales) | |---|---|---|---| | £150,000 | £500 | £100 | £0 | | £250,000 | £2,500 | £2,100 | £1,500 | | £500,000 | £15,000 | £23,350 | £18,000 | | £750,000 | £27,500 | £48,350 | £36,750 | | £1,000,000 | £43,750 | £78,350 | £61,750 |

Standard home-mover rates. Source: docs/rates/stamp-duty-rates.md (golden examples).

Related guides

• How much can I borrow for a mortgage? — stamp duty affects your total purchase budget
• How is take-home pay calculated? — plan your finances around the full cost of buying