What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is payable in England and Northern Ireland by the purchaser, on the consideration paid under a land transaction, and can be a major cost for property investors.
The rate paid depends on whether:
- the property is commercial or residential
- the purchaser is a first-time buyer
- the transaction will be the purchaser’s only property or one of several
The consideration isn’t just the amount paid in a purchase, it can apply to a number of scenarios.
For example, if a property is transferred to a limited company, or if joint owners change the proportions they own, then SDLT can be payable.
SDLT Rates – residential
| Consideration | Only Property | 2nd and further properties |
| UP TO £125k | 0% | 3% if above £40,000 |
| NEXT £125k (TO £250k) | 2% | 5% |
| NEXT £675k (TO £925k) | 5% | 8% |
| NEXT £575k (TO £1.5M) | 10% | 13% |
| ABOVE £1.5M | 12% | 15% |
MULTIPLE DWELLING RELIEF – if you buy several properties in one transaction, then you divide the total paid by the number of dwellings and calculate the SDLT on the average for each property.
OVERSEAS INVESTORS – a 2% surcharge on SDLT for non-residents purchasing residential property introduced from April 2021.
Confused about SDLT? Get in touch and we will be happy to explain.