Stamp Duty Update

Buying a property in the UK over a certain price means you have to pay Stamp Duty Land Tax (SDLT). This tax is charged on all purchases of houses, flats and other land and buildings.

The SDLT rate depends on the purchase price of the property (rates table below) and whether the property is residential. Stamp Duty may also be due if you lease a property.

SDLT Rates from 4 December 2014

SDLT is charged at different rates depending on the portion of the purchase price that falls into each rate band. Prior to 4th December 2014, SDLT was charged as a single percentage of the property price.

Residential Properties

Purchase price of property Rate of SDLT (% of portion of purchase price)
£0 – £125,000 0%
£125,001 – £250,000 2%
£250,001 – £925,000 5%
£925,001 – £1.5 million 10%
Over £1.5 million 12%

E.g. A property with a purchase price of £265,000 will attract 2% tax on £125,000 (£125,001 – £250,000) and then 5% on £15,000 (£250,001 – £925,000)