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.
|Purchase price of property||Rate of SDLT (percentage of the total purchase price)|
|£0 - £125,000||0%|
|£125,001 - £250,000||1%|
|£250,001 - £500,000||3%|
|£500,001 - £1 million||4%|
|Over £1 million - £2 million||5%|
|Over £2 million||7%|
|Over £2 million bought by corporate bodies||15%|
SDLT is charged at 15% on residential dwellings costing more than £2 million bought by bodies like:
- collective investment schemes
Some companies acting as trustees for a settlement and property developers may only need to pay 7%.
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 value||Rate of SDLT (percentage of the total purchase price)|
|Up to £150,000 - annual rent is less than £1,000||Zero|
|Up to £150,000 - annual rent is £1,000 or more||1%|
|Over £150,000 to £250,000||1%|
|Over £250,000 to £500,000||3%|
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.