Calculating Stamp Duty Land Tax

If you are buying a property or land over a certain price in England, Wales or Northern Ireland you are obliged by law to pay Stamp Duty Land Tax (SDLT). Scotland is excluded from SDLT, however you are required instead to pay Land and Building Transaction Tax. When you buy a property the change in land ownership has to be legally registered at the Land Registry. A certificate from HMRC is required for this process which will only be issued once the stamp duty has been paid.

Current SDLT rates are stipulated in the table below. The threshold is £125,000 for residential properties and £150,000 for non­residential properties. Rates differ for residential, non­residential and mixed residential.

Stamp Duty Rates

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 value SDLT rate
Up to £125,000 Zero
The 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%

 

How To Calculate

For example, if you buy a house for £275,000, the SDLT you owe is calculated as follows:

  • 0% on the first £125,000 = £0
  • 2% on the next £125,000 = £2,500
  • 5% on the final £25,000 = £1,250
  • Total SDLT = £3,750

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