What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is the tax that you pay when you purchase a property or land over a certain price in the United Kingdom. The amount of money you pay depends on the price of the property, or whether you are a first-time buyer. Stamp duty rates go up as the property price increases. The amount you pay is calculated according to the proportion of the property price that falls into each band.
1 in 4 individuals overpay on their SDLT liability without knowing. This is due to reliefs and incentives being missed at the point of assessment. If your property has any of the following, this could be you.
Types of Relief Available:
Uninhabitable
• Property can’t have been lived in within the last 6 months
• Potentially needs electrical rewire and re-plumbing
• No working kitchen and bathroom
• Purchased in probate via a limited company
Multiple Dwellings Relief (MDR)
• Annexes or outbuildings
• Planning / permitted development approval
• Servants’ quarters
• Purchasing more than one dwelling from the same vendor
Mixed Use
• Way leave or grazing agreements
• Commercial activity
• Rights of way or easements
• Properties or sites reserved off plan
Amount of Tax Chargeable
PURCHASE PRICE BANDS | BASIC RESIDENTIAL SDLT RATES (%) | HIGHER RATE TRANSACTIONS SDLT RATES (%) |
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 £1,500.00 + | 12 | 15 |
Non-Residential of Mixed-Use Rates
PURCHASE PRICE BANDS | PERCENTAGE RATE (%) |
Up to £150,000 | 0 |
Above £150,000 and up to £250,000 | 2 |
Above £250,000 + | 5 |