Section 6
Property & land transaction taxes
Property tax is devolved: England & Northern Ireland, Scotland, and Wales each run separate systems. Rates below are current for the 2026/27 tax year.
England & Northern Ireland — Stamp Duty Land Tax (SDLT)
Paid within 14 days of completion, usually via your solicitor.
| Band | Residential | Commercial |
|---|---|---|
| Up to £125,000 | 0% | — |
| £125,001 – £150,000 | 2% | 0% |
| £150,001 – £250,000 | 2% | 2% |
| £250,001 – £925,000 | 5% | 5% |
| £925,001 – £1,500,000 | 10% | 5% |
| Over £1,500,000 | 12% | 5% |
- +5% surcharge on second homes / buy-to-let, on top of the above (raised from 3% in October 2024)
- +2% surcharge for non-UK-resident buyers, on top of all other rates
- 15% flat rate above £500,000 when residential property is bought inside a corporate “envelope” (Ltd company etc.), plus the annual ATED charge
- First-time buyers: 0% up to £300,000, then 5% up to £500,000 (relief lost entirely above £500k)
Scotland — Land & Buildings Transaction Tax (LBTT)
Administered by Revenue Scotland, not HMRC.
| Band | Residential | Commercial |
|---|---|---|
| Up to £145,000 | 0% | — |
| £145,001 – £150,000 | 2% | 0% |
| £150,001 – £250,000 | 2% | 1% |
| £250,001 – £325,000 | 5% | 5% |
| £325,001 – £750,000 | 10% | 5% |
| Over £750,000 | 12% | 5% |
- +8% Additional Dwelling Supplement on second homes / buy-to-let
- First-time buyers pay 0% on the first £175,000
Wales — Land Transaction Tax (LTT)
Administered by the Welsh Revenue Authority. Wales offers no first-time-buyer relief.
| Band | Residential | Non-residential |
|---|---|---|
| Up to £225,000 | 0% | 0% |
| £225,001 – £250,000 | 6% | 1% |
| £250,001 – £400,000 | 6% | 5% |
| £400,001 – £750,000 | 7.5% | 5% |
| £750,001 – £1,000,000 | 10% | 5% |
| £1,000,001 – £1,500,000 | 10% | 6% |
| Over £1,500,000 | 12% | 6% |
Higher residential rates for second homes / company purchases range from 5% (up to £180k) to 17% (over £1.5m) — the highest second-home surcharge of the three nations.
Ongoing taxes once you own it
- Council Tax (residential) or Business Rates (commercial) — paid annually to the local authority based on valuation band or rateable value
- Capital Gains Tax — due on profit when you later sell an investment property or land (not your main home)
- VAT — most new-build residential sales are zero-rated, but VAT (usually 20%) can apply to commercial property, renovations, and land where the seller has “opted to tax”
- Annual Tax on Enveloped Dwellings (ATED) — yearly charge on residential property worth over £500,000 held inside a company
Freeport & Investment Zone relief
Within a designated Freeport or Investment Zone tax site: full SDLT relief on qualifying commercial property purchases, an enhanced 10%-per-year Structures & Buildings Allowance (versus the standard 3%), 100% first-year capital allowances on plant & machinery, and business rates relief. These reliefs apply only inside the mapped tax sites, not the wider local authority area — confirm exact boundaries with the zone’s operator before assuming eligibility.
General reference only, not tax advice. Rates and thresholds change with each Budget — always confirm current figures with HMRC, Revenue Scotland, or the Welsh Revenue Authority, and take advice from a solicitor or accountant for your specific transaction.