Stamp Duty Land Tax
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
- Whether you own another more than one home (3% surcharge)
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*|
|£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%|
*(% of total purchase price)
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