Stamp Duty (SDLT)
Stamp Duty Land Tax (SDLT) is a tax you have to pay when you buy a house or a flat with a purchase price above £125,000. It applies to both freehold and leasehold properties and also if you buy a plot of land, although the rate will differ on land.
In Scotland a Land & Building Transaction Tax is payable.
Stamp Duty is payable when you buy a new or existing leasehold property, a property through a shared ownership scheme or a freehold property.
Your Solicitor will normally take the Stamp duty fee from you and pay it directly to HMRC. If you are buying a property for less than £125,000 then you will have to pay nothing but your conveyancing solicitor will still send in a tax return on your behalf to HMRC unless there is an exemption.
How Much Stamp Duty Will You Pay?
- Purchase Price £125,000 – No Stamp Duty to Pay
- The next £125,000 (£125,001 to £250,000) – 2%
- The next £675,000 (£250,001 to £925,000) – 5%
- The next £575,000 (£925,001 to £1.5 Million – 10%
- Remaining amount above £1.5 Million – 12%
As an example
If you purchase a property for £285,000
- 0% on the first £125,000 = £0
- 2% on the next £125,000 = £2,500
- 5% on the final £35,000 = £1,525
Total = £4,025
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