You must pay Stamp Duty Land Tax if you buy a property or land over a certain price in England, Wales and Northern Ireland.
The current Stamp Duty Land Tax 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
- are transferred land or property in exchange for payment, e.g. you take on a mortgage or buy a share in a house
You can use the below table to work out the Stamp Duty Land Tax for the purchase price of a property:-
|Property or Lease Premium or Transfer Value||SDLT rate|
|Up to £152,000||0.00%|
|The next £125,000 (the portion from £125,001 to £250,000)||2.00%|
|The next £675,000 (the portion from £250,001 to £925,000)||5.00%|
|The next £575,000 (the portion from £925,001 to £1.5 million)||10.00%|
|The remaining amount (the portion above £1.5 million)||12.00%|
If you buy a house for £275,000, the Stamp Duty Land Tax you owe is calculated as follows:
|0% on the first £125,000||£0|
|2% on the next £125,000||£2,500|
|5% on the final £25,000||£1,250|
|Total Stamp Duty Land Tax||£3,750|
How and when to pay:
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.
For more detailed information about Stamp Duty Land Tax please refer to: https://www.gov.uk/stamp-duty-land-tax/overview