Stamp Duty

Stamp Duty or Stamp Duty Land Tax (SDLT) as it is more formerly known is a tax you pay when buy a property or land over a certain price in England, Wales and Northern Ireland.

The current threshold at which SDLT comes in to effect when you buy your or only property to live in is £250,000

(An SDLT Calculator available see links at the bottom of this section.)

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
Up to £125,000 0%
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

Legislation introduced in April 2016 has brought about changes to the SDLT for investors/those buying to let with a surcharge of 3% on top of the bands for the standard ratings referred to above.

Higher rates for additional properties

From 1 April 2016, you’ll usually have to pay 3% on top of the normal SDLTrates if buying a residential property means you’ll own more than one.

You may not have to pay the higher rates if you exchanged contracts before 26th November 2015.

If you’re replacing your main residence

You won’t pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.

If there’s a delay selling your main residence and it hasn’t been sold on the day you complete your new purchase:

  • you’ll have to pay higher rates because you own 2 properties
  • you may be able to get a refund if you sell your previous main home within 36 months

We have included below the link relating to SDLT calculator for both the above scenarios and covering both “freehold & “leasehold” property.