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.
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 - see below.
|Purchase price of property||Rate of SDLT (percentage of the total purchase price)|
|£0 - £125,000||0%|
|£125,001 - £250,000||1%|
|£250,001 - £500,000||3%|
|£500,001 - £1 million||4%|
|Over £1 million - £2 million||5%|
|Over £2 million||7%|
|Over £2 million bought by corporate bodies||15%|
SDLT is charged at 15% on residential dwellings costing more than £2 million bought by bodies like:
- collective investment schemes
There are some exceptions. You’ll only need to pay 7% if you meet certain criteria. For example, 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% SDLT on 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%|
HM Revenue and Customs (HMRC) has SDLT calculators you can use to work out how much to pay.