Stamp Duty Land Tax Rates

Current Stamp duty land tax rates for residential property effective from the latest budget. 

Stamp Duty Land Tax (SDLT)

Stamp duty is a tax on the property and land transactions in the UK.  There are different percentage rates of tax to be paid to HMRC depending on the value of the property being purchased and different rates for residential property, commercial property, freehold and leasehold. 

Stamp Duty Land Tax Rates 

Previously, SDLT (Stamp Duty Land Tax Rates) was charged at a single rate for the entire price of a property.  Now  SDLT charges at increasing rates for each portion of the price. 

SDLT paid on Residential properties on each range:

0% on the first £125,000 of the property price

2% on  £125,001 -   £250,000

5%  on £250,001 -  £925,000

10% on £925,001 -  £1.5 million

12% above £1.5 million

SDLT rates on Buy to let /second home property purchases from 1st April 2016

3% on the first £125,000 of the property price

5% on  £125,001 -   £250,000

8%  on £250,001 -  £925,000

13% on £925,001 -  £1.5 million

15% above £1.5million

If you sell your previous main home after you buy your new home you must pay the higher rates on the new (second) home. If you sell or give away your previous main home within 3 years of buying your new home you can apply for a refund of the higher SDLT rate part of your Stamp Duty bill.

More information on Stamp Duty 

SDLT info for mixed use property, commercial property, non-residential, corporate property and other variations such as exemptions and first time buyers on SDLT can be found at the UK Government website. See HouseWow property resources links for UK Govt Stamp duty land tax

Stamp Duty Calculator

Use the HM Revenue and Customs (HMRC) SDLT calculator to work out how much you'll pay.

HMRC Stamp Duty Calculator  (Note: This link will open a new window at HMRC external website.)

Stamp Duty

Stamp Duty Land Tax (SDLT)

What is stamp duty? 

Stamp duty is a tax on the property and land transactions in the UK.  There are different percentage rates of tax to be paid to HMRC depending on the value of the property being purchased and different rates for residential property, commercial property, freehold and leasehold.

Stamp duty relief

There are a number of stamp duty calculators available to work out what you will pay. There are some stamp duty relief and although there had been a first time buyers stamp duty exemption this ended on 24th March 2012. There may be stamp duty tax relief for areas designated as "disadvantaged" by the government and relief if your home is environmentally friendly with a zero carbon neutral certificate from a registered assessor.

How do I pay stamp duty?

As the property buyer; if the property purchase value is greater than the stamp duty land tax threshold then the fee for the stamp duty will be paid over to the HMRC by the buyers solicitor as a disbursement on completion when the property purchase price is paid to the seller/mortgage company and all related fees are settled. The buyers solicitor will pay the stamp duty and also send the necessary forms to the Land registry to detail the mortgage paid of by the seller and register the new owners and the new mortgage against the property.

Do I pay stamp duty when I add my wife to the deeds of my property?

If you wish to add a husband or wife to the deeds of your property later, after the initial purchase transaction then the deeds at the land registry will need to be changed. This is called a transfer of equity.  If there is still a mortgage on the property or cash is paid in consideration of the share of the property then stamp duty land tax will become payable if the payment and mortgage share together total more than the current threshold for stamp duty.  There is more information at the HMRC website.

Transfer of equity

The stamp duty rate is also applicable for property transfers which means that if you change the names on the deeds to include a partner, husband or wife and there is a mortgage payable on part of the property then stamp duty land tax may be payable. Check with a conveyancing solicitor for more details.

SDLT online

It's possible to calculate sdlt online and pay sdlt online at the HMRC website. It's a simple process to sign up for passwords, but allow 2 weeks for the whole process to take place. If buying a house your conveyancing solicitor will already have a professional sign up and take care of this sdlt payment for you.  If paying stamp duty shares then in most cases this will be automatically deducted when the transaction is made.

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