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%|
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%|
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