Residential property rates

From 8 July 2020 the SDLT threshold for residential properties is changing. This page will be updated soon.

You usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price above £125,000 when you buy residential property, for example a house or flat.

There are different rules if you’re buying your first home and the purchase price is £500,000 or less.

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

You must still send an SDLT return for transactions under £125,000 unless they’re exempt.

Rates on your first home

You can claim a discount (relief) so you do not pay any tax up to £300,000 and 5% 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
  • you complete your purchase on or after 22 November 2017

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

If you paid SDLT on a shared ownership property between 22 November 2017 and 29 October 2018

You can apply for a refund if you paid SDLT but you did not get relief.

Write to HMRC and include:

  • the Unique Transaction Reference Number (UTRN) from your SDLT return - ask your solicitor if you’re not sure
  • how much you overpaid
  • your bank or building society account name, number and sort code

You must get your application to HMRC by 28 October 2019.

You can also ask HMRC to send the refund to someone else, for example your solicitor.

Rates if you’ve bought a home before

Freehold sales and transfers

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 If you buy a house for £275,000, the SDLT you owe is 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

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 the lease (known as the ‘net present value’) is more than £125,000, you also pay SDLT of 1% on the portion over £125,000 - unless you buy an existing (‘assigned’) lease.

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 the normal 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: