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 residential property is £250,000.
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 £250,000 | 0% | 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.
First time buyers paying £425,000 or less for a residential property no longer have to pay SDLT.
If the purchase price is between £425,001 and £625,000, first time buyers will pay SDLT at 5% on the amount of the purchase price in excess of £425,000.
If the purchase prices is over £625,000, relief is not available and a buyer would have to pay SDLT at the normal rates.
You will usually have to pay 3% on top of the normal SDLT rates if buying a residential property means you’ll own more than one.
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:
We have included below the link relating to SDLT calculator for both the above scenarios and covering both “freehold & “leasehold” property.