Residential property rates

You usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price when you buy residential property, for example a house or flat. SDLT only applies to properties over a certain value.

The amount you pay depends on:

  • when you bought the property
  • how much you paid for it

Use the SDLT calculator to work out how much tax you’ll pay.

You must send an SDLT return if you pay more than £40,000 for a property - even if there’s no SDLT due. There are some exemptions.

Rates from 8 July 2020 to 31 March 2021

You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’).

Property or lease premium or transfer value SDLT rate
Up to £500,000 Zero
The next £425,000 (the portion from £500,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

Example In March 2021 you buy a house for £625,000. The SDLT you owe will be calculated as follows:

  • 0% on the first £500,000 = £0
  • 5% on the remaining £125,000 = £6,250
  • total SDLT = £6,250

Use the SDLT calculator to work out how much tax you’ll pay.

Rates from 1 April 2021

These rates also apply if you bought a property before 8 July 2020.

You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’).

Property or lease premium or transfer value SDLT rate
Up to £125,000 Zero
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

Example In May 2021 you buy a house for £275,000. The SDLT you owe will be calculated as follows:

  • 0% on the first £125,000 = £0
  • 2% on the next £125,000 = £2,500
  • 5% on the final £25,000 = £1,250
  • total SDLT = £3,750

Use the SDLT calculator to work out how much tax you’ll pay.

If you’re buying your first home

You can claim a discount (relief) if you buy your first home before 8 July 2020 or from 1 April 2021. This means you’ll pay:

  • no SDLT up to £300,000
  • 5% SDLT on the portion from £300,001 to £500,000

You’re eligible if you and anyone else you’re buying with are first-time buyers.

If the price is over £500,000, you follow the rules for people who’ve bought a home before.

New leasehold sales and transfers

When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the ‘lease premium’) using the rates above.

If the total rent over the life of the lease (known as the ‘net present value’) is more than the SDLT threshold), you’ll pay SDLT at 1% on the portion of net present value over:

  • £500,000 for purchases from 8 July 2020 to 31 March 2021
  • £125,000 for purchases from 1 April 2021

This does not apply to existing (‘assigned’) leases.

You can work out how much SDLT you’ll pay for your new residential lease using HMRC’s:

Higher rates for additional properties

You’ll usually have to pay 3% on top of SDLT rates if buying a new residential property means you’ll own more than one.

Use the SDLT calculator to work out how much tax you’ll pay.

You may not have to pay the higher rates if you exchanged contracts before 26 November 2015.

If you’re replacing your main residence

You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.

If you have not sold your main residence on the day you complete your new purchase you’ll have to pay higher rates. This is because you own 2 properties.

You can apply for a refund if you sell your previous main home within 36 months.

There are special rules if you own property with someone else or already own a property outside England, Wales and Northern Ireland.

If it takes longer than 36 months to sell your previous main home

You may still be able to get a refund of the extra 3% SDLT if:

  • you purchased your new home on or after 1 January 2017
  • the delay was outside your control, for example because of coronavirus (COVID-19) or a public authority blocking the sale
  • you have now sold your old home

To claim a refund, write to HMRC and explain why the sale took longer than 36 months.

Include:

  • your details
  • details of the main buyer - if different to your own
  • details of the property where higher rate SDLT was paid - including the address, date of purchase and SDLT unique transaction reference number
  • details of the previous main residence - including the address, date of sale and SDLT unique transaction reference number
  • the amount of higher rate SDLT paid
  • the amount of tax you’re asking for a repayment of
  • a bank account and sort code for the person receiving the payment

Special rates

There are different SDLT rules and rate calculations for: