Stamp Duty Land Tax (SDLT) is a tax that is payable when you buy a property or land in England, Wales, or Northern Ireland. The tax is paid to HM Revenue & Customs (HMRC) and is based on the purchase price of the property or land. The current SDLT rates are:
- 0% on properties priced up to £125,000
- 2% on properties priced between £125,001 and £250,000
- 5% on properties priced between £250,001 and £925,000
- 10% on properties priced between £925,001 and £1.5 million
- 12% on properties priced over £1.5 million
For example, if you are buying a property for £300,000, the SDLT calculation would be as follows:
- 0% on the first £125,000 = £0
- 2% on the next £125,000 = £2,500
- 5% on the remaining £50,000 = £2,500
- Total SDLT payable = £5,000
Note that if you are a first-time buyer, you may be eligible for a SDLT relief, which can reduce or eliminate the amount of SDLT you need to pay. Additionally, if you are buying a property as a second home or buy-to-let investment, you may be subject to an additional 3% SDLT surcharge on top of the standard SDLT rates.
Your solicitor or conveyancer will typically calculate the SDLT on your behalf as part of the property purchase process, and you will need to pay the SDLT to HMRC within 14 days of completing the purchase.
