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. Please bear in mind that reduced rates of Stamp Duty Land Tax (SDLT) will apply for residential properties purchased from 8 July 2020 until 31 March 2021 inclusive.

Use our stamp duty calculator to work out the uk rates of SDLT on your property.

Stamp Duty Land Tax (SDLT) Calculator

Stamp Duty On Residential Properties

If you buy a home in England or Northern Ireland which costs more than £125,000 (or more than £40,000 for second homes), then you usually have to pay Stamp Duty Land Tax (SDLT) to HMRC. This applies to both freehold and leasehold properties and whether you are buying outright or using a mortgage.

If you’re buying a property in Scotland you usually pay Land and Buildings Transaction Tax (LBTT) and in Wales: Land Transaction Tax (LTT) rather than Stamp Duty. Our residential stamp duty calculator for uk property will help you work out normal SDLT rates.

There Are Several Rate Bands For Stamp Duty

The tax is calculated on the part of the property purchase price falling within each band. For example, if you buy a house for £275,000, the Stamp Duty Land Tax (SDLT) you usually 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

However, due to the recent upheaval in the property market due to Covid-19, the Government has introduced SDLT exemptions on Properties under £500,000.

With our residential stamp duty calculator uk, just key in the price of either your main or an additional UK property and know the cost in seconds.
Rates from 8 July 2020 to 31 March 2021 (Via Gov.uk)

Property Value SDLT rate
Up to £500,000 Zero
From £500,001 to £925,000 5%
From £925,001 to £1.5 million 10%
The remaining amount (the portion above £1.5 million) 12%
For Example

In March 2021 you buy a house for £625,000. The SDLT you owe will be calculated as follows:

  • 0% on the first £500,000 = £0
  • 5% on the remaining £125,000 = £6,250
  • total SDLT = £6,250

With our online stamp duty tax calculator, all you need to do is key in the price of either your main or an additional property and you will know the cost in seconds.

Rates from April 2021

Government rates of Stamp Duty are, at first glance, fairly straightforward, although different types of ownership will incur their own unique charges. The most straightforward SDLT calculations occur for residential buyers simply changing their only home. The cost of Stamp Duty for first time buyers also differs, depending on the value of the property. Stamp Duty rates begin at 2% of the price on properties selling for anything above £125,000, rising to 5% on the next £675,000, 10% of any further £575,000 and 12% on any price above £1.5 million

Minimum property purchase price Maximum property purchase price Stamp Duty rate (only applies only to that part of the property price that falls within each band)
£0 £125,000 0%
£125,001 £250,000 2%
£250,001 £925,000 5%
£925,001 £1.5 million 10%
Over £1.5 million 12%

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

The rules become a little more complicated when buying an additional property, such as a buy-to-let, a holiday/second home or for family reasons. Buyers of additional residential properties like second homes or buy-to-let properties are normally charged an extra 3% in Stamp Duty on top of current rates. If you own two properties on the day of completion of the purchase of your second property but still legally own your first property and plan to sell, you are still obliged to pay the higher rate of SDLT. A refund is available if you sell your former main residence within 36 months. See our Stamp Duty Land Tax Calculator for a quick and easy way to see how much extra additional buyers would need to budget for.

Residential Property And Mixed-Use Land

There are also separate rules for what is termed ‘non-residential and mixed use land’, which includes commercial property such as retail units and offices, land used for agriculture and forestry, and any non-residential land or six or more residential units that are bought in one transaction.

Mixed use refers to a property that falls into both of the above categories: both residential and non-residential, like flats above shops for example. The threshold for these types of property begins at £150,000: between £150,000 and £250,00, the Stamp Duty rate is 2%, and any amount above £250,000 incurs a charge of 5%.

The value of the property is sometimes known as the ‘consideration’, and in the majority of cases is the amount paid, although payment may include other various factors such as transfer of or release from a debt, which may take into account the value of any mortgage outstanding, services or work or any associated goods.

Sometimes it may be possible to claim relief from SDLT such as:

  • The purchase of multiple dwellings
  • Homes bought by building companies
  • An employee’s home bought by his or her employer
  • A property bought by a local authority as a compulsory purchase
  • Transfer of a property from one company to another
  • Charities, right-to-buy or registered social landlords.

SDLT For First-Time-Buyers

First-time buyers do not have to pay Stamp Duty on properties costing up to £300,000. If the property is worth between £300,000 and £500,000, they pay no Stamp Duty on the first £300,000, but will pay 5% on the remaining amount paid.

Important
Anyone buying a property for whatever amount, even if it is below the threshold, must fill in and send an SDLT return and pay the tax within 30 days of their completion date. It is advisable to leave this in the care of one of our experienced conveyancing experts. We also provide a dependable online stamp duty land tax calculator for homebuyers anywhere in the UK. However, Stamp Duty remains a complex tax so if you need further help please don’t hesitate to contact us, at Conveyancing Expert we want you to be sure you are fully aware of the financial implications of your purchase so there are no nasty surprises.

To discuss any of the above or if you have any specific queries, please do not hesitate to contact us on 0161 794 7799.
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