Stamp Duty Land Tax (SDLT)


SDLT is charged on land and property transactions in the UK. The tax is charged at different rates and has different thresholds for different types of property and different values of transaction.

Stamp Duty Land Tax (SDLT) Calculator

The tax rate and payment threshold can vary according to whether the property is in residential or non-residential use, and whether it is a freehold or leasehold. SDLT relief is available for certain kinds of property or transaction.

Please see the usual rates that apply.

New leases (predominantly in commercial transactions) attract different rates and a lease calculator is provided by HMRC to calculate tax due in those transactions.

Stamp Duty for First Time Buyers is Scrapped as of 22 November 2017

Source: The Independent

Stamp duty will be scrapped immediately for first-time buyers of homes below £300,000, as the Chancellor put Britain's housing crisis at the heart of his Budget.

Philip Hammond said the move would cut the tax for 95 per cent of first-time buyers — and abolish it altogether for 80 per cent of them.

Mr Hammond added that, in London and other property hotspots, stamp duty would be axed on the first £300,000 of a purchase price up to £500,000 — a cut of up to —5,000.

The move came as he promised a wide-ranging package to boost housebuilding, setting a target of an annual 300,000 homes built by the middle of the next decade.

Higher capital funding, loans and guarantees, plus measures to boost the supply of skills, resources and land, would add up to £44bn, he said.

The stamp duty cut – the clear Budget "rabbit — is likely to be criticised by some for risking a further fuelling of house price inflation, until mores homes are built.

But it was welcomed as a "promising move from the Government which will no doubt be welcomed by thousands of younger buyers", by Jeremy Duncombe, director of the Legal & General Mortgage Club.

"For too long, stamp duty has stood as just another barrier to homeownership, another cost to overcome, but with this exemption the path to owning a home has been made just that bit easier," he said.

Residential land or property SDLT rates and thresholds (as of 2012)

Purchase price/lease premium
or transfer value
SDLT rate SDLT rate
for first-time buyers
Up to £125,000 Zero Zero
Over £125,000 to £250,000 1% Zero
Over £250,000 to £500,000 3% 3%
Over £500,000 to £1 million 4% 4%
Over £1 million 5% 5%

Note
Information regarding thresholds taken from http://www.hmrc.gov.uk/sdlt/intro/rates-thresholds.htm

There are two notable exceptions to the above which come up frequently at the moment.  The first is disadvantaged area relief which means that certain postcodes do not pay stamp duty until a property reaches £150,000.00

The next is for first time buyers – when SDLT is not payable until the property exceeds £250,000.00 – see below for more.

Please note that once you pass a threshold – the tax is payable on ALL of the figure paid.

e.g. if you bought a house at £125,000.00 then you would pay nothing but if you paid £125,001.00 then you would pay £1,250 in SDLT.

To discuss any of the above or if you have any specific queries, please do not hesitate to contact us on 0844 412 5857.
Call Conveyancing Expert