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If you are buying a property or land in England and Northern Ireland, you may be required to pay Stamp Duty Land Tax.
The tax is different if the property or land is in Scotland or Wales, they are taxed as follows:
Land and buildings transaction tax for scottish properties and land transaction tax for welsh properties:
Land and Buildings Transaction Tax
Using the following pages, you can establish the rates of Stamp Duty Land Tax and have an estimate on how much is payable on the purchase of a residential buy-to-let property.
A conveyancing solicitor will be able to assist with calculating the total amount of stamp duty land tax payable and declaring this to HMRC by completing an Stamp Duty Land Tax Return.
Once an Stamp Duty Land Tax return has been sent to HMRC, the tax must be paid within 14 days of completion.
First time buyers rates
| Value of property | Rate |
|---|---|
| Up to £425,000 | 0% |
| The next £200,000 (from £425,001 to £625,000) |
5% |
For purchases over £625,000, SDLT* is charged based on the standard rates, i.e., no first time buyers’ rates are allowable.
Standard Rates
| Value of property | Standard rate | Higher rates |
|---|---|---|
| Up to £250,000 | 0% | 5% |
| The next £675,000 (from £250,001 to £925,000) |
5% | 10% |
| The next £575,000 (from 925,001 to £1,500,000) |
10% | 15% |
| Upwards from £1,500,001 | 12% | 17% |
Things to be aware of
Non-resident stamp duty land task rates:
If you are a Non-UK resident, when purchasing a residential property in England, you shall incur an additional 2% on the higher rates.
Buying a property in a limited company over £500k:
When purchasing a property in a limited company and the value of the property over £500k, the standard rate of Stamp Duty Land Tax is 17%. However, a relief may apply to charge the standard rates of Stamp Duty Land Tax if the property will be let out on a commercial basis.
Purchasing a property for mixed use:
When purchasing a property that is classified as non-residential and mixed land and property, you will need to pay different rates of Stamp Duty Land Tax as detailed in the below link.
Replacement of main residence:
If, when purchasing your main residence, you hold onto your previous main residence, by choice or for reasons outside of your control, you would have had to pay the additional 5% Stamp Duty Land Tax surcharge. However, if you sell your previous main residence within 36 months of purchasing your new main residence, you will be able to claim the additional 5% Stamp Duty Land Tax back.
