Stamp duty for contractors
Contractors pay the same stamp duty as anyone — it’s based on the property and buyer type, not how you earn. The 2025/26 bands run 0% to 12%, first-time buyers get relief to £500,000, and buy-to-let adds a 5% surcharge.
The bands that apply to you
Stamp Duty Land Tax (England & NI) is banded: you pay each rate only on the slice of the price within it. The standard bands are 0% to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5m and 12% above. Your contractor status doesn’t change any of this — it’s the property and buyer type that matter.
For the full breakdown and worked examples, see the stamp duty calculator.
Buying your own home
- First-time buyer: 0% to £300,000, then 5% to £500,000 (no relief above £500,000).
- Home mover: standard bands above.
- Remortgaging your existing home is generally SDLT-free.
Buying a buy-to-let or second home
If you’re adding to your property holdings — a buy-to-let or second home of £40,000 or more — a 5% surcharge is added to every band on top of the standard rates. For contractors building a portfolio, that surcharge is a real budgeting line.
- SDLT depends on the property and buyer type, not your income.
- First-time buyer relief: 0% to £300k, 5% to £500k.
- Buy-to-let / second home: +5% on every band from £40k.
- Use the calculator below for your exact figure.
Tax, answered
Do contractors pay different stamp duty?+
No. SDLT is based on the purchase price and whether you’re a first-time buyer, home mover or buying an additional property — not on how your income is structured.
How much is the buy-to-let surcharge?+
An extra 5% is added to every band on additional properties of £40,000 or more, on top of the standard rates. The calculator shows the combined figure.
Is stamp duty payable on a remortgage?+
No — a straight remortgage of a property you already own doesn’t trigger SDLT, because ownership doesn’t change.