Stamp Duty 2027: Rates, Thresholds & Second Homes
If you plan to buy a home in 2027, the short answer is that stamp duty in England and Northern Ireland is expected to work exactly as it does today. The Autumn Budget on 28 October 2026 did not change Stamp Duty Land Tax (SDLT) rates, thresholds, first-time buyer relief or the second home surcharge, and we are not aware of any change announced for 2027.
This guide sets out the rates you would pay, shows worked examples for a standard purchase against a second home, and explains what has been abolished and what could still change. You can check your own figure with our stamp duty calculator.
Will Stamp Duty Change in 2027?
At the time of writing (5 November 2026), no SDLT rate or threshold change has been announced to take effect in 2027. The current bands have applied since 1 April 2025, when the temporary higher thresholds ended. Our Autumn Budget 2026 summary covers the narrow technical SDLT changes the Budget did include.
Three things are worth separating:
- Stamp duty itself: unchanged for now. Future Budgets or fiscal events can change it, usually with little notice.
- Other property taxes: income tax on property income is set to rise to 24%, 44% and 49% from 6 April 2027, which affects buy-to-let returns but not the stamp duty bill.
- Support schemes: the Your First Home equity loan scheme is due to start in 2027. Read our Your First Home guide.
Scotland (LBTT) and Wales (LTT) set their own rates, so everything below applies to England and Northern Ireland only.
Current SDLT Rates for 2027 Purchases
Standard residential rates
| Purchase price band | Standard rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
SDLT is charged by band, so each rate applies only to the slice of the price inside that band.
Surcharges that sit on top
- Additional dwellings (second homes and buy-to-let): +5% on every band. The surcharge rose from 3% to 5% on 31 October 2024.
- Non-UK residents: +2% on every band, which can stack with the additional dwellings surcharge.
Stamp Duty on a Second Home: Standard vs Surcharge
The table below compares the bill for someone buying their only home with someone who already owns a property and is buying another. The surcharge is 5% of the whole price, because it applies to every band.
| Purchase price | Standard SDLT | With 5% surcharge | Extra cost |
|---|---|---|---|
| £250,000 | £2,500 | £15,000 | £12,500 |
| £300,000 | £5,000 | £20,000 | £15,000 |
| £500,000 | £15,000 | £40,000 | £25,000 |
| £1,000,000 | £43,750 | £93,750 | £50,000 |
Worked example: a £300,000 second home
Standard rates (only home):
- First £125,000 at 0% = £0
- Next £125,000 (£125,001 to £250,000) at 2% = £2,500
- Final £50,000 (£250,001 to £300,000) at 5% = £2,500
- Total: £5,000
With the 5% surcharge (second home):
- First £125,000 at 5% = £6,250
- Next £125,000 at 7% = £8,750
- Final £50,000 at 10% = £5,000
- Total: £20,000
That is £15,000 more, exactly 5% of £300,000. Try your own purchase price in our second home stamp duty guide or the main calculator.
Worked example: a £500,000 non-UK resident buying a second home
On £500,000 the standard bill is £15,000 (£2,500 on the 2% band plus £12,500 on the 5% band). Add the 5% surcharge (£25,000) and the 2% non-resident surcharge (£10,000) and the total is £50,000. As always, rules on residence status are detailed, so check your position before relying on this figure.
First-Time Buyer Stamp Duty Thresholds
First-time buyers in England and Northern Ireland pay:
- 0% on the first £300,000
- 5% on the portion from £300,001 to £500,000
- No relief at all if the price is over £500,000, so standard rates apply to the whole price
| Purchase price | Standard SDLT | First-time buyer SDLT | Saving |
|---|---|---|---|
| £250,000 | £2,500 | £0 | £2,500 |
| £300,000 | £5,000 | £0 | £5,000 |
| £400,000 | £10,000 | £5,000 | £5,000 |
| £500,000 | £15,000 | £10,000 | £5,000 |
| £500,001 | £15,000 | £15,000 | £0 |
At £500,000 the relief is worth £5,000, but one pound more removes it entirely, so the price cliff is worth planning around. Everyone named on the purchase must be a first-time buyer to qualify. Full eligibility rules are in our first-time buyer stamp duty guide.
Multiple Dwellings Relief: Abolished
Multiple Dwellings Relief (MDR) used to reduce SDLT when buying more than one dwelling in a single deal, for example a house with an annexe. It was abolished for purchases completing on or after 1 June 2024. A limited transitional rule protects contracts exchanged on or before 6 March 2024 and not varied afterwards, so it should not apply to a purchase made in 2027.
If you are buying a property with a self-contained annexe, the dwellings are generally taxed at residential rates and, depending on your circumstances, the surcharge may also be in point. Buying six or more dwellings in one transaction can be treated as non-residential. A conveyancer or tax adviser can confirm how your purchase is classed.
What Could Change Before or During 2027?
- Future Budgets: SDLT is set by the UK Government, so rates can change at any fiscal event.
- Annual High Value Council Tax Surcharge: due from April 2028 on homes worth £2,000,000 or more. It is not stamp duty, but affects the true cost of owning a very expensive home.
- Reform proposals: campaigns to replace stamp duty with an annual levy have been discussed but were not adopted in the Budget.
We update our calculator whenever the official rates change.
How to Estimate Your 2027 Stamp Duty
- Enter the purchase price in our stamp duty calculator.
- Select whether you are a first-time buyer or buying an additional property.
- Tick the non-UK resident option if it applies.
- Review the band-by-band breakdown and effective rate.
Frequently Asked Questions
Is stamp duty going up in 2027?
No increase has been announced. The current rates apply unless Parliament legislates otherwise.
What is the stamp duty threshold in 2027?
Currently £125,000 for standard purchases, and £300,000 for eligible first-time buyers buying a home up to £500,000.
How much is the second home surcharge?
5% of each band, so the extra cost is 5% of the purchase price.
Can I still claim multiple dwellings relief?
Not for new purchases. It was abolished for transactions completing from 1 June 2024, subject to narrow transitional rules.
Disclaimer: This article is for general information only and is not formal legal, tax or financial advice. Figures are illustrative, based on rates understood to apply at 5 November 2026, and your own circumstances may differ. Check GOV.UK or take advice from a qualified solicitor or tax adviser before you buy.