Stamp Duty & Property Tax, Clearly Explained

How SDLT, LBTT and LTT work across England, Scotland and Wales, and the property tax changes coming in 2027 and 2028.

In this guide

How the three UK property purchase taxes differ
The additional property surcharge, worked through
What changes in 2027 and 2028

Three taxes, three nations

Buying property in the UK means paying a purchase tax, but which one depends on where the property is. 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). Each charges different rates on different slices of the price.

Purchase price (England & NI)	Main home	Additional property
Up to £125,000	0%	5%
£125,001 to £250,000	2%	7%
£250,001 to £925,000	5%	10%
£925,001 to £1.5 million	10%	15%
Above £1.5 million	12%	17%

Rates as at October 2026. Non-UK residents pay a further 2% on every band.

A worked example

On a £300,000 buy-to-let purchase in England: £6,250 on the first £125,000 (5%), £8,750 on the next £125,000 (7%) and £5,000 on the final £50,000 (10%), a total of £20,000. The same home bought as a main residence would cost £5,000.

Scotland and Wales

In Scotland, LBTT starts at £145,000 (£175,000 for first-time buyers) and the Additional Dwelling Supplement adds 8% of the whole price for second homes and buy-to-let. In Wales, LTT starts at £225,000 for main homes; additional properties pay higher rates from 5% to 17%. Rates change independently of England, so always check the current bands.

What's Changing

Property income tax, April 2027. Rental profits held personally will be taxed at 22%, 42% and 47% in England, Wales and Northern Ireland.

High Value Council Tax Surcharge, April 2028. Owners of homes in England worth over £2 million will pay an annual surcharge of £2,500 to £7,500, based on April 2026 values, on top of council tax. Valuation notices are expected in autumn 2027.

Autumn Budget, 28 October 2026. Further changes may be announced. We will confirm the latest rates when we speak.

Illustrative example · not a real client

Budgeting for tax before choosing a home: a fictional case study

Grace was choosing between a £480,000 house in Cardiff and a £480,000 flat in Bristol. Her broker showed her the different purchase tax on each, LTT in Wales and SDLT in England, alongside her mortgage options, so she understood the true cost of each move before making an offer.

Names, figures and circumstances are fictional and illustrative only. They do not represent an actual client of Our Mortgage Broker Limited.

Not sure what tax applies to your purchase?

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Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let and commercial mortgages are not regulated by the Financial Conduct Authority. Our Mortgage Broker Limited is authorised and regulated by the Financial Conduct Authority (FRN 944663). Registered in England and Wales, company no. 11358646. Registered office: 23 Berkeley Square, Mayfair, London W1J 6HE. There may be a fee for mortgage advice: we may charge up to 1% of the loan amount, and our typical fee is £500. Your fee agreement sets out the exact fee and when it is payable (at decision in principle, application or mortgage offer); fees are not refundable once due. We usually also receive commission from the lender. This guide is general information only and is not personal advice. Case studies are fictional, illustrative examples and do not represent real clients. Rates, tax and regulatory information are correct as at October 2026 and may change, including at the Autumn Budget on 28 October 2026.