The 2026 Statutory Rate Framework Post-Sunset
The temporary increases to Stamp Duty Land Tax nil-rate thresholds enacted under the Stamp Duty Land Tax (Reduction of Rates) Act 2022 contained a statutory sunset clause ending on 31 March 2025.
In 2026, standard residential SDLT rates in England and Northern Ireland operate under permanent statutory thresholds set by the Finance Act 2003. This means buyers purchasing a home over £125,000 pay an additional £2,500 in tax across the £125,000 to £250,000 band that was previously exempt.
| Purchase Price Slice | Standard Residential Rate | First-Time Buyer Rate | Additional Home Rate (3% HRAD) |
|---|---|---|---|
| Up to £125,000 | 0% | 0% (up to £300k) | 3% |
| £125,001 to £250,000 | 2% | 0% (up to £300k) | 5% |
| £250,001 to £300,000 | 5% | 0% | 8% |
| £300,001 to £500,000 | 5% | 5% | 8% |
| £500,001 to £925,000 | 5% | 5% (standard rates apply) | 8% |
| £925,001 to £1,500,000 | 10% | 10% | 13% |
| Over £1,500,000 | 12% | 12% | 15% |
Impact on Moving Homeowners vs First-Time Buyers
For home movers, the return to the £125,000 baseline means that every property purchased above £250,000 incurs £2,500 more SDLT than during the 2022–2025 relief window.
For first-time buyers, the 0% threshold is capped at £300,000 (down from £425,000 during the temporary relief). First-time buyers purchasing between £300,000 and £500,000 pay 5% on that portion. Crucially, if a first-time buyer purchases a property exceeding £500,000, they lose 100% of the relief and must pay standard residential rates on the entire price.
Purchasing a property for £500,001 rather than £500,000 immediately revokes First-Time Buyer Relief. The tax jumps overnight from £10,000 to £15,000—a £5,000 penalty for a £1 difference in agreed sale price.
Worked Examples: How Much Stamp Duty Will You Pay in 2026?
Understanding how SDLT applies across marginal slices helps buyers budget accurately for conveyancing completions:
• Example 1 (£250,000 purchase): First £125,000 at 0% = £0. Remaining £125,000 at 2% = £2,500. Total SDLT: £2,500.
• Example 2 (£400,000 purchase for mover): First £125,000 at 0% = £0. Next £125,000 at 2% = £2,500. Next £150,000 at 5% = £7,500. Total SDLT: £10,000.
• Example 3 (£400,000 purchase for first-time buyer): First £300,000 at 0% = £0. Next £100,000 at 5% = £5,000. Total SDLT: £5,000.
Pre-Exchange SDLT Due Diligence Checklist
Ensure your completion statement and tax calculations are accurate with this verification checklist: