You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England, Wales and Northern Ireland.
You usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price above £125,000 when you buy residential property, eg a house or flat.
There are different rules if you’re buying your first home and the purchase price is £500,000 or less.
Use the Stamp Duty calculator to work out how much tax you’ll pay.
You must still send an SDLT return for transactions under £125,000 unless they’re exempt.
Rates if you’re buying your first home:
You can claim a discount (relief) so you don’t pay any tax up to £300,000 and 5% on the portion from £300,001 to £500,000.
You’re eligible if:
- you, and anyone else you’re buying with, are first-time buyers
- you complete your purchase on or after 22 November 2017
If the price is over £500,000, you follow the rules for people who’ve bought a home before.
Rates if you’ve bought a home before:
- Freehold sales and transfers
- You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’).
Property or lease premium or transfer value SDLT rate:
Up to £125,000 = Zero
The next £125,000 (the portion from £125,001 to £250,000) = 2%
The next £675,000 (the portion from £250,001 to £925,000) = 5%
The next £575,000 (the portion from £925,001 to £1.5 million) = 10%
The remaining amount (the portion above £1.5 million) = 12%
Example: If you buy a house for £275,000, the SDLT you 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
Total SDLT = £3,750
New leasehold sales and transfers:
- When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the ‘lease premium’) using the rates above.
- If the total rent over the life the lease (known as the ‘net present value’) is more than £125,000, you also pay SDLT of 1% on the portion over £125,000 - unless you buy an existing (‘assigned’) lease.
Higher rates for additional properties:
You’ll usually have to pay 3% on top of the normal SDLT rates if buying a new residential property means you’ll own more than one.
You may not have to pay the higher rates if you exchanged contracts before 26 November 2015.
If you’re replacing your main residence:
You won’t pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.
If there’s a delay selling your main residence and it hasn’t been sold on the day you complete your new purchase:
- you’ll have to pay higher rates because you own 2 properties
- you may be able to get a refund if you sell your previous main home within 36 months
There are special rules if you own property with someone else or already own a property outside England, Wales and Northern Ireland.