Stamp Duty Rates In The UK
Stamp Duty Rates In The UK.
What Is Stamp Duty?
Stamp Duty is a tax you pay when buying a residential property or land in England or Northern Ireland over a certain price. You usually pay Stamp Duty on increasing portions of the property price when you buy residential property.
Stamp Duty must be paid on all properties costing more than £125,000, unless you’re a first-time buyer.
Stamp duty on a second home still incurs an extra 3% Stamp Duty on properties costing more than £40,000 at the relevant rate.
SDLT applies to both freehold and leasehold properties and whether you’re buying outright or with a mortgage.
The amount you pay depends on:
when you bought the property
how much you paid for it
| Property Value | Sdlt Rate |
|---|---|
| less than £125k | 0% |
| £125k to £250k | 2% |
| £250k to £925k | 5% |
| £925k to £1.5m | 10% |
| rest over £1.5m | 12% |
Stamp Duty On A Second Home.
If you’re buying an additional property, such as a holiday home or a buy to let, you will have to pay an extra 3% in Stamp Duty on top of the normal rate. This applies to all purchases over £40,000.
It doesn’t apply to caravans, mobile homes or houseboats.
Government rates of Stamp Duty are, at first glance, fairly straightforward, although different types of ownership will incur a variety of charges. The most straightforward SDLT calculation is for residential buyers simply changing their only home. The cost of Stamp Duty for first time buyers also differs, depending on the value of the property.
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|
|
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|---|---|---|---|---|---|
| £0 | £500,000 | 3% | |||
| £500,001 | £925,000 | 8% | |||
| £925,001 | £1.5 MILLION | 13% | |||
| Over £1.5 million | 15% |
Non Residential And Mixed Use Land.
There are also separate rules for what is termed ‘non-residential and mixed use land’, which includes commercial property such as retail units and offices, land used for agriculture and forestry, any non-residential land or six or more residential units that are bought in one transaction.
You pay SDLT on increasing portions of the property price (or ‘consideration’) when you pay: £150,000 or more for non-residential or mixed use land or property.
- The purchase of multiple dwellings
- A home bought by a building company
- An employee’s home bought by his or her employer
- A property bought by a local authority as a compulsory purchase
- The transfer of a property from one company to another
- Charities, right-to-buy or registered social landlords.