You pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price above £125,000 when you buy residential property, eg a house or flat.
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 | Breakdown |
|---|---|---|
| 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% | |
| Total | ||
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
Stamp Duty for buy-to-let & second home purchases from April 2016:
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 above.
| Purchase Price Bands (£) | Rate of Stamp Duty | Breakdown |
|---|---|---|
| £0 – £40,000 | 0% | |
| £40,001 – £125,000 | 3% | |
| £125,001 – £250,000 | 5% | |
| £250,001 – £925,000 | 8% | |
| £925,001 – £1.5 million | 13% | |
| Over £1.5 million | 15% | |
| Total | ||
You won’t pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.
If there’s a delay selling your main residence and it hasn’t been sold on the day you complete your new purchase:
- you’ll have to pay higher rates because you own 2 properties
- you may be able to get a refund if you sell your previous main home within 36 months
