You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland.
The tax is different if the property or land is in:
- Scotland - pay Land and Buildings Transaction Tax
- Wales - pay Land Transaction Tax if the sale was completed on or after 1 April 2018
You pay the tax when you:
- buy a freehold property
- buy a new or existing leasehold
- buy a property through a shared ownership scheme
- are transferred land or property in exchange for payment, for example you take on a mortgage or buy a share in a house
The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there’s no SDLT to pay.
The current SDLT threshold for residential properties is £250,000.
There were different thresholds and rates for residential properties before 23 September 2022.
The threshold for non-residential land and properties is £150,000.
You’ll get a discount (relief) that means you’ll pay less or no tax if both the following apply:
- you, and anyone else you’re buying with, are first-time buyers
- the purchase price is £625,000 or less
How much you pay
If you’re buying a residential property there are different rates of SDLT if:
- you’re a first-time buyer
- you already own a property and you’re buying an additional property
- you’re not a UK resident
You can use HM Revenue and Customs’ (HMRC) Stamp Duty Land Tax calculator to work out how much tax you’ll pay.
You may be able to reduce the amount of tax you pay by claiming relief, such as if you’re a first-time buyer or purchasing more than one property (‘multiple dwellings’).
The value you pay SDLT on (the ‘consideration’)
The total value you pay SDLT on (sometimes called the ‘consideration’) is usually the price you pay for the property or land.
Sometimes it might include another type of payment like:
- works or services
- release from a debt
- transfer of a debt, including the value of any outstanding mortgage
Find out how to work out the consideration if your situation is complicated.
How and when to pay
You must send an SDLT return to HMRC and pay the tax within 14 days of completion.
If you have a solicitor, agent or conveyancer, they’ll usually file your return and pay the tax on your behalf on the day of completion. They’ll then add the tax to their fees. They’ll also claim any relief you’re eligible for, such as if you’re a first-time buyer.
There are certain situations where you do not need to send a return.
You may be charged penalties and interest if you do not file your return and make your payment within 14 days of completion.