Stamp Duty Changes and the October Budget: What Property Buyers Should Know Before Completion

ATHILAW

2 days ago

5 min read

Position on the morning of 28 October 2026, before the Budget statement.

Stamp duty changes can affect a purchase already under way, so your transaction date matters more than headlines. The Chancellor delivers the Budget on 28 October 2026, and the Prime Minister has ruled out changing stamp duty at this Budget. Normally, the applicable rate depends on the effective date, usually completion, although transitional provisions can protect contracts already exchanged.

This guide covers the latest position, the current SDLT rates and the practical steps to take if your purchase is approaching exchange or completion.

Where the Budget stands

The Autumn Budget takes place on Wednesday 28 October 2026. Prime Minister Andy Burnham has ruled out stamp duty changes at this Budget. Replacing stamp duty and council tax with an annual property tax remains speculation. The Conservatives have pledged to abolish stamp duty for UK residents buying primary homes, but that is opposition policy.

Future reform remains possible. The Chancellor's statement and the tax documents published alongside it are the authoritative position, rather than headlines about unconfirmed plans. Stamp Duty Land Tax (SDLT) applies in England and Northern Ireland; Scotland and Wales have separate property transaction taxes.

Current Stamp Duty Land Tax rates

GOV.UK sets out the following standard residential rates for buyers purchasing their only property in England or Northern Ireland.

Portion of the price	Rate
Up to £125,000	0%
£125,001 to £250,000	2%
£250,001 to £925,000	5%
£925,001 to £1.5 million	10%
Above £1.5 million	12%

Each rate applies only to the corresponding price band, not the whole purchase price. Reliefs and surcharges can significantly change the total tax payable.

First-time buyers. No SDLT on the first £300,000 and 5% from £300,001 to £500,000, provided every buyer qualifies. No relief applies above a £500,000 purchase price.
Additional properties. An extra 5 percentage points usually applies. Replacing your main residence can qualify for an exception or, if the old home sells within 36 months, a refund.
Non-UK residents. A 2 percentage-point surcharge generally applies. Residence depends on UK presence for at least 183 days in a relevant 12-month period, subject to detailed rules.

For non-residential and mixed-use purchases, GOV.UK gives rates of 0% on the first £150,000, 2% from £150,001 to £250,000, and 5% above £250,000. Company purchases and linked transactions can be subject to special rules.

What else could change for property buyers

Other proposals matter too. Their status before the statement is as follows.

Measure	Status before the statement
Your First Home scheme	Announced in September 2026 for eligible buyers of participating new-build homes; proposed 2.5% deposits and 20% equity loans, with details due at the Budget
High Value Council Tax Surcharge	Previously announced for England from April 2028 on homes worth £2 million or more; reports about changing the threshold remain unconfirmed
Higher tax rates on property income	Legislated for April 2027: property income tax rates of 22%, 42% and 47% for the corresponding bands
Tax treatment of short-term holiday lets	Further council tax or business rates changes have been reported as possible, but not confirmed
Capital gains tax rise	Wider rises have been discussed and reported as unlikely; no new Budget decision is confirmed

Your First Home is separate from SDLT relief and is intended for eligible buyers of new-build homes. Wait for full eligibility rules and lender requirements before changing plans. The surcharge and property income rates were announced before this Budget, whereas further holiday-let or CGT proposals remain unconfirmed.

Which rate applies to your purchase

SDLT usually depends on the rate in force on the transaction's effective date, normally completion. It can be earlier if the contract is substantially performed, for instance when a buyer takes possession. Exchange does not automatically freeze the rate, which matters when tax rules change between exchange and completion.

The October 2024 Budget offers an example. GOV.UK explained that the additional-property surcharge rose from 3 to 5 percentage points on 31 October, with protection for some earlier contracts. HMRC's manual lists exceptions, including subsequent variations and assignments.

Scenario	What usually happens
Change takes effect immediately, you complete afterwards	The new rate may apply unless specific transitional protection is provided
Contracts exchanged before the change date	Earlier exchange may offer protection, but only where the relevant rules say so
Contract varied or buyer changed after the change date	Changes may remove transitional protection, depending on the legislation
Change announced for a future date	The rate applicable on your effective date usually determines the liability

Each Budget has its own commencement dates, definitions and exceptions. Ask your solicitor to check the exact legal wording before altering a contract or committing to an accelerated completion.

What to do if you are buying now

Confirm your timetable. Tell your solicitor the exchange and completion dates and possible delays.
Avoid casual variations. Changes after exchange may affect transitional protection.
Check who is buying. Adding a parent or partner can affect reliefs and higher rates. Read our gifted deposit rules guide.
Check your mortgage offer. Delay may require an extension or new application. See understanding mortgage offers.
Do not skip checks. Rushed searches, surveys or title reviews can cost more than any tax saving. See due diligence and exchange of contracts.
Have funds ready. The SDLT return and payment are generally due within 14 days of the effective date; your solicitor normally handles both.

Our conveyancing team can calculate applicable rates and review your timetable once the Budget documents are available. Our guide to speeding up conveyancing sets out practical preparations.

If you are buying business premises or a lease

Commercial purchases have different rates. A new lease may incur SDLT on any premium and separately on the net present value of rent. No rent-based SDLT applies where that value does not exceed £150,000; above that, rates of 1% and 2% apply to different bands. Our commercial conveyancing team can help. See the commercial lease checklist for tenants and financing a commercial purchase.

If you are an overseas buyer or buying an additional property

The 2% non-resident surcharge can stack with the 5% additional-property rate. Our guide to buying property with overseas funds covers necessary checks. Buyers replacing a main residence may qualify for a refund after selling their old home. Our immigration team advises on residence questions.

Frequently asked questions

Is stamp duty changing in the Budget?

The Prime Minister has ruled out stamp duty changes in the 28 October Budget, but the statement and official documents are decisive.

Which stamp duty rate applies to me?

Usually the rate in force on the effective date, generally completion, subject to reliefs, surcharges and transitional rules.

Can I be protected if I have already exchanged?

Possibly. Protection depends on the rules, and changing the contract may remove it.

Should I rush to complete before a change?

Not at the expense of proper checks. Discuss your timetable with your solicitor.

Do first-time buyers still get relief?

Yes. Eligible buyers pay 0% up to £300,000 and 5% on the next portion to £500,000, with no relief above that purchase price.

Get the timetable right

A tax change matters most when completion dates are tight. Athi Law can review exchange and completion dates, calculate SDLT and help keep your purchase on track through its Sheffield, Dronfield and West Bromwich offices. Contact us when your offer is accepted.