Stamp Duty Land Tax (SDLT)

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

From 1 April 2015 SDLT won’t apply in Scotland. Instead you’ll pay Land and Buildings Transaction Tax when you buy a property.

The SDLT rate depends on:

  • the purchase price of the property
  • whether the property is residential

SDLT may also be due if you lease a property.

Rates from 4 December 2014

Previously, SDLT was charged at a single rate for the entire price of a property. From 4 December, SDLT is charged at increasing rates for each portion of the price.

You can choose to pay SDLT at the old or the new rates if you exchanged contracts on or before 3 December 2014, and completed on 4 December or later.

Residential properties

You’ll pay:

  • nothing on the first £125,000 of the property price
  • 2% on the next £125,000
  • 5% on the next £675,000
  • 10% on the next £575,000
  • 12% on the rest (above £1.5 million)

ExampleIf you buy a property for £275,000, you’ll pay £3,750 of SDLT. This is made up of:

  • nothing on the first £125,000
  • £2,500 on the next £125,000
  • £1,250 on the remaining £25,000

Use the HM Revenue and Customs (HMRC) SDLT calculator to work out how much you’ll pay.

Corporate bodies

SDLT is charged at 15% on residential properties costing more than £500,000 bought by bodies like:

  • companies
  • collective investment schemes

There are some exceptions. For example, you pay SDLT based on the new rates and bands where the property is used for:

  • a property rental business
  • a property development or resale trade
  • providing admission to visitors on a commercial basis

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

You’ll pay:

  • nothing on the property price, premium or value up to £150,000 (annual rent less than £1,000)
  • 1% on properties up to £150,000 (annual rent £1,000 or more)
  • 1% on properties between £150,001 and £250,000 (rent £1,000 or more)
  • 3% on properties between £250,001 and £500,000 (rent £1,000 or more)
  • 4% on properties over £500,000 (rent £1,000 or more)

Use the HMRC SDLT calculator to work out how much you’ll pay.

Special rules for SDLT

There are special rules for SDLT when you:

  • buy 2 or more properties from someone you’re ‘connected to’ (eg a relative or business partner)
  • buy property through a shared ownership scheme
  • transfer ownership of a property through marriage, civil partnership, divorce, from a will or to a company

Last updated: 21 January 2015.

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