Stamp Duty (SDLT)

 In Mortgage Law

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.

Stamp Duty (SDLT) Mortgage GuardianStamp Duty applies on residential property purchases in England, Wales or Northern Ireland and the amount payable depends on the purchase price of the property.

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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