If you buy either property or land in the UK you have to pay Stamp Duty Land Tax (SDLT).

This is charged on all purchases of houses, flats and other land and buildings.

The SDLT rate depends on:

• The purchase price of the property
• Whether the property is residential
• Whether the property is in a disadvantaged area

 

Stamp Duty Land Tax is normally paid directly to your solicitor with your funds for the purchase of the property.

 

Stamp Duty Land Tax rates on residential land or property:

Purchase Price of Property	Rate of SDLT (% of total purchase price)
£0 - £125,000	0%
£125,001 - £250,000	2%
£250,001 - £925,000	5%
£925,000 - £1.5 Million	10%
Over £1.5 Million	12%

 

So if you buy a house for £275,000 you will pay £3,750 in Stamp Duty Land Tax on top of the purchase price.

This 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 Stamp Duty Land Tax payable = £3,750

For more information on how to calculate your Stamp Duty Land Tax, please visit: Stamp Duty Land Tax.