Stamp Duty Land Tax (SDLT)

If you buy a property in the UK over a certain price, you have to pay Stamp Duty Land Tax (SDLT). This is charged on all purchases of houses, flats and other land and buildings.

The SDLT rate depends on:

  • the purchase price of the property
  • whether the property is residential
  • whether the property is in a disadvantaged area

SDLT may also be due if you lease a property. The lease must be for at least £125,000 for residential properties or £150,000 for non-residential or mixed use.

Residential properties

Purchase price of propertyRate of SDLT (percentage of the total purchase price)
£0 - £125,0000%
£125,001 - £250,0001%
£250,001 - £500,0003%
£500,001 - £1 million4%
Over £1 million - £2 million5%
Over £2 million7%
Over £2 million bought by corporate bodies15%

Corporate bodies

SDLT is charged at 15% on residential dwellings costing more than £2 million bought by bodies like:

  • companies
  • collective investment schemes

Some companies acting as trustees for a settlement and property developers may only need to pay 7%.

Residential leases

If your residential lease is for more than £125,000, you’ll pay 1% SDLT on the amount above the £125,000 threshold.

Non-residential and mixed-use properties

Purchase price/lease premium or transfer valueRate of SDLT (percentage of the total purchase price)
Up to £150,000 - annual rent is less than £1,000Zero
Up to £150,000 - annual rent is £1,000 or more1%
Over £150,000 to £250,0001%
Over £250,000 to £500,0003%
Over £500,0004%

Non-residential or mixed-use leases

If your non-residential or mixed-use lease is for more than £150,000, you’ll pay 1% SDLT on the amount above the £150,000 threshold.

The information above was correct at the time of publication (21/08/2013 21:34hrs) please check with HMRC for any changes since publication.

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