Stamp Duty Land Tax (SDLT) Rates

Do you know your Stamp Duty Rates? Stamp Duty Land Tax (SDLT) must be paid when buying a property in England, Wales and Northern Ireland

In Scotland, the charge is known as Land and Buildings Transaction Tax (LBTT); this is basically the same as for the rest of the UK, but has different minimum and maximum thresholds and Stamp Duty rates.

Government rates of Stamp Duty are, at first glance, fairly simple, although different types of ownership will incur their own unique charges. The most straightforward cost when moving home is for those residential buyers simply changing their only home.

Stamp Duty rates begin at 2% of the price on properties selling for anything above £125,000, rising to 5% on the next £675,000, 10% of any further £575,000 and 12% on any price above £1.5 million.

Purchase price bands (£) SDLT (%) Second Property SDLT (%)
Up to £125,000 0% 3%
Above £125,000 and up to £250,000 2% 5%
Above £250,000 and up to £925,000 5% 8%
Above £925,000 and up to £1,500,000 10% 13%
Above £1,500,000 12% 15%

The Different Stamp Duty Rates Explained

Government rates of Stamp Duty are, at first glance, fairly simple, although different types of ownership will incur their own unique charges. The most straightforward cost when moving home is for those residential buyers simply changing their only home. Stamp Duty rates begin at 2% of the price on properties selling for anything above £125,000, rising to 5% on the next £675,000, 10% of any further £575,000 and 12% on any price above £1.5 million.

The government rules become a little more complicated for those buying an additional property, either for buy-to-let, a holiday home or family reasons. There are separate rules for what is termed ‘non-residential and mixed use land’, which includes commercial property such as retail units and offices, land used for agriculture and forestry, any non-residential land or six or more residential units that are bought in one transaction.

Mixed use refers to any property that falls into both of the above categories, both residential and non-residential, such as flats above shops or other commercial property. The threshold for these types of property begins at £150,000: between £150,000 and £250,00, the Stamp Duty rate is 2%, and any amount above £250,000 incurs a charge of 5%.

The value of the property is also known as the ‘consideration’, and in the majority of cases is the amount that is paid, although payment may include other various factors. These can include transfer of or release from a debt, which may take into account the value of any mortgage outstanding, services or work or any associated goods.

In some cases, it may be possible to claim relief from SDLT. There are many situations where it is possible to make a claim, such as:

  • purchase of multiple dwellings
  • a home bought by a building company
  • an employee’s home bought by his or her employer
  • a property bought by a local authority as a compulsory purchase
  • transfer of a property from one company to another
  • charities, right-to-buy or registered social landlords.

While this may appear over-complicated at first, it need not be with our handy Stamp Duty calculator [LINK]. We have an experienced team who keep up to date with any likely changes to Stamp Duty, so our calculator will be immediately updated give our visitors the latest correct information on the cost of moving home.

Anyone buying a property for whatever amount, even it is below the threshold, must fill in and send an SDLT return and pay the tax within 30 days of their completion date. Some buyers may be able to complete the paperwork themselves, but in the majority of cases it is advisable to leave this in the care of an experienced conveyancing solicitor.

To find out how much stamp duty you will have to pay use our calculator