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HMRC internal manual

Stamp Duty Land Tax Manual

Estate Agent Introductory Fees

Example 2

I attended an open day to view a flat. I made an offer of £175,000 for the flat. I was told that the seller would accept my offer only if I agreed to pay the estate agent a fee to secure the property. The fee would be £2,500 (including VAT), payable on completion, for “introducing” me to the property. I agreed to this before contracts were exchanged.

The chargeable consideration given for the property is £177,500 (purchase price plus estate agent introductory fee).

The SDLT due on £177,500 = £1,050.

Here is a breakdown of how the SDLT was calculated

Purchase Price Bands (£) Percentage rate SDLT due (£)
Up to 125,000    
Above 125,000 and up to 250,000 2 1050
Above 250,000 and up to 925,000 5  
Above 925,000 and up to 1,500,000 10  
Above 1,500,000+ 12