You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England, Wales and Northern Ireland.

The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.

The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.

You pay the tax when you:

• buy a freehold property
• buy a new or existing leasehold
• buy a property through a shared ownership scheme
• are transferred land or property in exchange for payment, eg you take on a mortgage or buy a share in a house 

​How much you pay depends on whether the land or property is:

• residential (SEE BELOW)
• non-residential or mixed-use

You can use HM Revenue and Customs Stamp Duty Land Tax calculator to work out how much tax you’ll pay.

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England, Wales and Northern Ireland. 

 The total value you pay SDLT on is usually the price you pay for the property or land.

Sometimes it might include another type of payment like:

• goods
• works or services
• release from a debt
• transfer of a debt, including the value of any outstanding mortgage 

You must send an SDLT return to HMRC and pay the tax within 30 days of completion.

If you have a solicitor, agent or conveyancer, they’ll usually file your return and pay the tax on your behalf on the day of completion and add the amount to their fees.

If they don’t do this for you, you can file a return and pay the tax yourself.

You may be charged penalties and interest if you don’t file your return and make your payment within 30 days of completion. 

You pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price above £125,000 when you buy residential property, eg a house or flat.

Use the SDLT calculator to work out how much tax you’ll pay.

You must still send an SDLT return for transactions under £125,000 unless they’re exempt. 

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                                                                                                                Zero
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%

Example
​If you buy a house for £275,000, the SDLT you owe is calculated as follows:

0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £25,000 = £1,250
Total SDLT = £3,750 

When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the ‘lease premium’) using the rates above.

If the total rent over the life the lease (known as the ‘net present value’) is more than £125,000, you also pay SDLT of 1% on the portion over £125,000 - unless you buy an existing (‘assigned’) lease. 

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

Use the SDLT calculator to work out how much tax you’ll pay.

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

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 get a refund if you sell your previous main home within 36 months

There are special rules if you own property with someone else or already own a property outside England, Wales and Northern Ireland. 

Get more information on stamp duty rates on non-residential properties, special rates and exemptions at www.gov.uk or call us in the office on 01924 650607!