Residential property rates
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.
You must still send an SDLT return for transactions under £125,000 unless they’re exempt.
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 valueSDLT rateUp to £125,000ZeroThe 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%
ExampleIf you buy a house for £275,000, the SDLT you owe is calculated as follows:
0% on the first £125,000 = £02% on the next £125,000 = £2,5005% on the final £25,000 = £1,250 Total SDLT = £3,750
New leasehold sales and transfers
When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the ‘lease premium’) using the rates above.
If the total rent over the life the lease (known as the ‘net present value’) is more than £125,000, you also pay SDLT of 1% on the portion over £125,000 – unless you buy an existing (‘assigned’) lease.
How much you’ll pay
You can work out how much SDLT you’ll pay for your new residential lease usingHMRC’s:
Higher rates for additional properties
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.
You may not have to pay the higher rates if you exchanged contracts before 26 November 2015.
If you’re replacing your main residence
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 propertiesyou may be able to get a refund if you sell your previous main home within 36 months
There are special rules if you own property with someone else or already own a property outside England, Wales and Northern Ireland.
There are different SDLT rules and rate calculations for:
corporate bodiespeople buying 6 or more residential properties in one transactionshared ownership propertiesmultiple purchases or transfers between the same buyer and seller (‘linked purchases’)purchases that mean you own more than one propertycompanies and trusts buying residential property
Info provided by from HMRC website 2016