Stamp Duty Land Tax – What You Need To Know

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

ConsiderationOnly Property2nd and further properties
UP TO £125k0%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.

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