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What is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax (SDLT) is a tax paid by the buyer of a UK property when the purchase price exceeds £125,000. The stamp duty rate ranges from 2% to 12% of the purchase price, depending upon the value of the property bought. Like income tax, each rate only applies to the part of the property that falls within the tax band.

Anyone purchasing an ‘additional’ residential property will be charged a 3% surcharge on each of the threshold bands.

From 22 November 2017, first time buyers purchasing a property for £500,000 and under will be charged 0% stamp duty on the first £300,000 and 5% on the portion from £300,001 to £500,000.  

 

What are the stamp duty rates for first time buyers?

First time buyers purchasing a property up to £500,000 in value are eligible for the discounted stamp duty rates below. To be eligible, you and anyone you are purchasing with must be first time buyers.

For the purchase of a main residence
Purchase price bands (£) Rate (%)
Up to £300,000 0%
Between £300,001 and £500,000     5%

If your property costs more than £500,000 in value, there will be no first time buyer exemption and the standard rates below will apply. 

 

What are the standard tax band thresholds?

For the purchase of a main residence
Purchase price bands (£) Rate (%)
Between £40,001 and £125,000 0%
Between £125,001 and £250,000 2%
Between £250,001 and £925,000 5%
Between £925,001 and £1.5 million 10%
Over £1.5 million 12%
For the purchase of ‘additional’ property
Purchase price bands (£) Rate (%)
Between £40,001 and £125,000 3%
Between £125,001 and £250,000 5%
Between £250,001 and £925,000 8%
Between £925,001 and £1.5 million 13%
Over £1.5 million 15%

Corporate bodies purchasing property at more than £500,000 will pay 15% stamp duty. 

When renting, a landlord has to pay SDLT if the income from a short term property let (up to seven years), residential tenancy or lease is above the threshold.

For more information and for help calculating the amount of SDLT you might owe on residential properties, use our stamp duty calculator

 

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