You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England, Wales and Northern Ireland. The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties. You pay the tax when you:
- Buy a freehold property
- Buy a new or existing leasehold
- Buy a property through a shared ownership scheme
How much you pay depends on whether the land or property is:
- Non-residential or mixed-use
You can use HM Revenue and Customs' (HMRC) Stamp Duty Land Tax calculator to work out how much tax you'll pay. (There's a different calculator for leases.)
You may be able to reduce the amount of tax you pay by claiming relief, eg if you buy more than one property ('multiple dwellings').
Value paid to SDLT on (the 'consideration')
The total value you pay SDLT on (sometimes called the 'consideration') is usually the price you pay for the property or land.
Sometimes it might include another type of payment such as:
- Works or services
- Release from a debt
- Transfer of a debt, including the value of any outstanding mortgage
You must send an SDLT return to HMRC and pay the tax within 30 days of completion. If you have a solicitor, agent or conveyancer, they'll usually file your return and pay the tax on your behalf on the day of completion and add the amount to their fees. If they don't do this for you, you can file a return and pay the tax yourself. There are certain situations where you don't need to send a return.
Residential Property Rates
You pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price above £125,000 when you buy residential property, eg a house or flat.
Freehold sales and transfers
You can also use this table to work out the SDLT for the purchase price of a lease (the 'lease premium').
|Property or lease premium or transfer value SDLT rate
||Buy-to-let/second home rate
|Up to £125,000
|The next £125,000 (the portion from £125,001 to £250,000)
|The next £675,000 (the portion from £250,001 to £925,000
|The next £575,000 (the portion from £925,001 to £1.5 million)
|The remaining amount (the portion above £1.5 million)
New leasehold sales and transfers
When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the 'lease premium') using the rates above. If the total ground rent over the life of the lease (known as the 'net present value') is more than £125,000, you also pay SDLT of 1% on the portion over £125,000 - unless you buy an existing ('assigned') lease.
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