*Calculation based on the Chancellors Autumn Statement on 03/12/2014
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.
Different rates apply in Scotland from 1 April 2015 when Land and Buildings Transaction Tax (LBTT) replaces SDLT.
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.
SDLT rates from 4 December 2014
SDLT is charged at different rates depending on the portion of the purchase price that falls into each rate band.
Before 4 December 2014, SDLT was charged as a single percentage of the property price.
Where contracts have been exchanged on or before 3 December 2014, and the transaction is completed on 4 December or later, you can choose whether you follow the new or the old rules.
|Purchase price of property||Rate of SDLT (percentage of the total purchase price)|
|£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%|
SDLT is charged at 15% on residential dwellings costing more than £500,000 bought by bodies like:
- collective investment schemes
There are some exceptions. For example, you pay SDLT based on the new rates and bands where the property is used for:
- a property rental business
- a property development or resale trade
- providing admission to visitors on a commercial basis
If your residential lease is for more than £125,000, you’ll pay 1% SDLTon 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)|
|Up to £150,000 – annual rent is less than £1,000||Zero|
|Up to £150,000 – annual rent is £1,000 or more||1%|
|Over £150,000 to £250,000||1%|
|Over £250,000 to £500,000||3%|