SEARCH

Save search for email alerts?

Stamp Duty

New Search

STAMP DUTY RATES

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England, Wales and Northern Ireland.

The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.  You pay SDLT on increasing portions of the property price above the threshold.

You pay tax when you:

  • buy a freehold property
  • buy a new or existing leasehold
  • buy a property through a shared ownership scheme
  • are transferred land or property in exchange for payment, eg, you take on a mortgage or buy a share in a house

Residential Property Rates

There are several rate bands for Stamp Duty.  The tax is calculated on the part of the property purchase price that falls within each band.

  • Up to £125,000            0%
  • £125,001 - £250,000    2%
  • £250,001 - £925,000    5%
  • £925,001 - £1.5m        10%
  • Above £1.5m              12%

For 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

First Time Buyers

From 22nd November 2017, first time buyers paying £300,000 or less for a residential property will pay no Stamp Duty Land Tax (SDLT).  First time buyers paying between £300,000 and £500,000 will pay SDLT at 5% on the amount of the purchase price in excess of £300,000.

A first time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.

First time buyers purchasing a property for more than £500,000 will not be entitled to any relief and will pay SDLT at the normal rates.

The revised rates and thresholds for residential property purchasers worth £500,000 or less by first time buyers is as follows:

  • Up to £125,000 = 0%
  • Over £125,000 and up to £300,000 = 0%
  • Over £300,000 and up to £500,000 = 5%

Buy-to-Let or Second Home Purchases

For anyone buying an additional property, including buy-to-let landlords and those buying second homes and holiday homes, you will have to pay an extra 3% on top of the normal SDLT rates.  The second home and buy-to-let stamp duty rates are tiered, just like residential stamp duty rates.

  • Up to £125,000            3%
  • £125,001 - £250,000    5%
  • £250,001 - £925,000    8%
  • £925,001 - £1.5m        13%
  • Over £1.5m                 15%

For example, if you buy a house for £275,000, the SDLT you owe is calculated as follows:

  • 3% on the first £125,000 = £3,750
  • 5% on the next £125,000 = £6,250
  • 8% on the final £25,000 = £2,000
  • Total SDLT = £12,000

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

If there is a delay selling your main residence and it has not been sold on the day you complete your new purchase:

  • you will have to pay higher rates because you own two properties
  • you may be able to get a refund if you sell your previous main home within 36 months

Further guidance is available by visiting: www.gov.uk/stamp-duty-land-tax/overview or alternatively for further information, please contact:

Sales Team: 01827 311412 or email: sales@taylorcole.co.uk

Request a Valuation

SIMPLY FILL IN THE FORM BELOW

Thank you for contacting us.
There was an error while sending your message.
Please wait...
IE8 Alert! Cookie Alert!

To get the best possible experience using our website we recommend you upgrade to a modern web browser. More info