Stamp Duty Land Tax or SDLT, is the tax almost nobody budgets for properly. The rules changed in 2025 and 2026, catching out plenty of buyers mid-purchase. Here’s the current, clear picture: rates, bands, first-time buyer relief, second-home surcharges, and worked examples for Stockport and Manchester properties.
The Standard Rates (Primary Residence)
For a buyer purchasing their only home, stamp duty is charged in tiers. 0% on the first £125,000. 2% on the slice from £125,001 to £250,000. 5% from £250,001 to £925,000. 10% from £925,001 to £1.5m. 12% above £1.5m. You pay only the relevant rate on each slice, the bands do not stack.
First-Time Buyer Relief
First-time buyers pay 0% on the first £300,000, and 5% on the portion from £300,001 to £500,000. If the purchase price is over £500,000, no relief is available- you pay standard rates on the whole thing. For a typical £240k Stockport first home, the bill is £0. For a £380k first home, it’s £4,000. For a £520k first home, it’s standard-rate £16,000.
Second Homes and Buy-to-Let- The 5% Surcharge
If you’re buying any additional property — a second home, a holiday let, a buy-to-let — you pay the standard rates PLUS a 5% surcharge on the entire purchase price. On a £200k Stockport BTL, standard duty would be £1,500, plus a £10,000 surcharge, total £11,500. This is a big number that catches first-time landlords off guard.
When You Can Reclaim the Surcharge
If you buy a new primary residence before selling your old one, you pay the 5% surcharge. But if you sell the old one within 36 months, you can reclaim the surcharge. Many Greater Manchester buyers use this when chains break down you complete on the new house first, then sell the old one, then reclaim. Cashflow-wise it’s painful, but the reclaim is real.
Limited Company BTL Purchases
Companies buying residential property pay the same standard rates plus the 5% surcharge from the first property onward- there’s no ‘first property exemption’ for companies. Additionally, companies buying property over £500,000 may be subject to the 15% flat rate in some circumstances (though reliefs for genuine property investment businesses usually apply).
Stockport Worked Examples
£180,000 first home, first-time buyer: £0. £180,000 first home, home mover: £1,100. £180,000 buy-to-let: £10,100. £320,000 family home, home mover: £6,000. £320,000 first home, first-time buyer: £1,000. £450,000 detached in Bramhall, home mover: £12,500.
Who Pays It and When
You pay stamp duty within 14 days of completion. In practice, your solicitor handles this- they hold the money from you, file the return with HMRC, and pay it. You don’t deal with it directly. But you do need to have the cash available, so it must be in your solicitor’s client account before completion.
Plan It Into Your Offer
Stamp duty is real money, and it’s money you’ve paid to HMRC, not to a lender. It can’t be borrowed against the property. Always budget stamp duty as cash-on-day-one, alongside your deposit.
Not sure what stamp duty will cost on your Stockport or Manchester purchase? Frank Mortgages calculates it exactly as part of every free consultation.
