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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.

From 1 April 2016 anyone purchasing an additional residential property such as a buy to let or second home will be charged a 3% surcharge on each of the threshold bands.  

For the purchase of replacement 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%

*Additional 3% SDLT for purchases made from 1 April 2016.

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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