How much will you pay?
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
Freehold sales and transfers
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%|
ExampleIf 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
Higher rates for additional properties
From 1 April 2016, you’ll usually have to pay 3% on top of the normal SDLTrates if buying a new residential property means you’ll own more than one.
You may not have to pay the higher rates if you exchanged contracts before 26 November 2015.
If you’re replacing your main residence
You won’t pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has been sold. If you sell within an 18 month period you will be refunded the additional 3%.
New leasehold sales and transfers
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 ground 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.
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