Stamp Duty Land Tax rates
You have to pay Stamp Duty Land Tax (SDLT) if you buy a property in the UK over a certain price. This is charged on all purchases of houses, flats and other land and buildings.
The SDLT rate depends on:
- the purchase price of the property
- whether the property is residential
SDLT may also be due if you lease a property.
Rates from 4 December 2014
Previously, SDLT was charged at a single rate for the entire price of a property. From 4 December, SDLT is charged at increasing rates for each portion of the price.
You can choose to pay SDLT at the old or the new rates if you exchanged contracts on or before 3 December 2014, and completed on 4 December or later.
What stamp duty rate will I pay?
|Purchase price of property||Rate of SDLT (percentage of the total purchase price)|
|£0 – £125,000||0%|
|on the next £125,000||2%|
|on the next £675,000||5%|
|on the next £575,000||10%|
|on the rest (above £1.5 million)||12%|
If you are purchasing a second property add 3% to all the stages ie £0-£125,000 would become 3% on the next £125,000 would become 5%
If you buy a property for £275,000, you’ll pay £3,750 of SDLT. This is made up of:
- nothing on the first £125,000
- £2,500 on the next £125,000
- £1,250 on the remaining £25,000
If you buy a 2nd property for £275,000, you’ll pay £12,000 of SDLT. This is made up of:
- 3% on the first £125,000 = £3,750
- 5% on the next £125,00 = £6,250
- 8%on the next £25.000 = £2,000
- collective investment schemes
- a property rental business
- a property development or resale trade
- providing admission to visitors on a commercial basis
SDLT is charged at 15% on residential dwellings costing more than £500,000 bought by bodies like:
There are some exceptions. You’ll only need to pay 7% if you meet certain criteria. For example, where the property is used for:
If your residential lease is for more than £125,000, you’ll pay 1% SDLT on the amount above the £125,000 threshold.
Non-residential and mixed-use properties
|Purchase price/lease premium or transfer value||Rate of SDLT (percentage of the total purchase price)|
|£0 – Up to £15,000 – annual rent is less than £1,000||0%|
|Up to £150,000 – annual rent is £1,000 or more||1%|
|Over £150,001 to £250,000 – rent is £1,000 or more||1%|
|Over £250,001 to £500,000 – rent is £1,000 or more||3%|
|Over £500,000 – rent is £1,000 or more||4%|
Last updated: 30 July 2014