Stamp Duty Land Tax

Contents

1. Overview
2. Residential property rates
3. Rates for non-residential and mixed land and property
4. Land and property transfers
5. Shared ownership property
6. Reliefs and exemptions

Overview

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

The tax is different if the property or land is in:

• Scotland – pay Land and Buildings Transaction Tax
• Wales – pay Land Transaction Tax if the sale was completed on or after 1 April 2018

You pay the 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, for example you take on a mortgage or buy a share in a house

Thresholds

The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there’s no SDLT to pay.

The current SDLT threshold for residential properties is £250,000. This changes on 1 October 2021.

The threshold for non-residential land and properties is £150,000.

Property purchases from 1 October 2021

The SDLT thresholds will be:

• £125,000 for residential properties
• £150,000 for non-residential land and properties

These thresholds are the same as they were before 8 July 2020.

First-time buyers

From 1 July 2021, you’ll get a discount (relief) that means you’ll pay less or no tax if both the following apply:

• you, and anyone else you’re buying with, are first-time buyers
• the purchase price is £500,000 or less

You’ll also be eligible for this discount if you bought your first home before 8 July 2020.

How much you pay

How much you pay depends on whether the land or property is residential use or non-residential or mixed-use.

If you’re buying a residential property there are different rates of SDLT if:

• you’re a first-time buyer
• you already own a property and you’re buying an additional property
• you’re not a UK resident

You can use HM Revenue and Customs’ (HMRC) Stamp Duty Land Tax calculator to work out how much tax you’ll pay.

You may be able to reduce the amount of tax you pay by claiming relief, such as if you’re a first-time buyer or purchasing more than one property (‘multiple dwellings’).

The value you pay SDLT on (the ‘consideration’)

The total value you pay SDLT on (sometimes called the ‘consideration’) is usually the price you pay for the property or land.

Sometimes it might include another type of payment like:

• goods
• works or services
• release from a debt
• transfer of a debt, including the value of any outstanding mortgage

Find out how to work out the consideration if your situation is complicated.

How and when to pay

You must send an SDLT return to HMRC and pay the tax within 14 days of completion.

If you have a solicitor, agent or conveyancer, they’ll usually file your return and pay the tax on your behalf on the day of completion and add the amount to their fees. They’ll also claim any relief you’re eligible for, such as if you’re a first-time buyer.

If they do not do this for you, you can file a return and pay the tax yourself.

There are certain situations where you do not need to send a return.

You may be charged penalties and interest if you do not file your return and make your payment within 14 days of completion.