Stamp Duty Land Tax
Stamp Duty Land Tax, (SDLT) or Stamp Duty, as it used to be known, is a tax paid by the purchaser of a property.
It is payable on all residential property purchases if the purchase price exceeds £125,000.
The relevant percentage tax is payable on the whole purchase price. For example, the tax due on a property costing £275,000 would be £8,250. (3% of the whole £275,000 purchase price.)
Residential Property Stamp Duty Land Tax rates:
| Purchase Price | SDLT Rate |
|---|---|
| Up to and including £125,000 | 0% |
| £125,001 to £250,000 | 1% |
| £250,001 to £500,000 | 3% |
| £500,001 to £1,000,000 | 4% |
| £1,000,001 to £2,000,000 | 5% |
| £2,000,001 and above | 7% |
If a property is bought in what is known as a 'disadvantged area' a different scale applies.
If a property with a purchase price in excess of £2,000,000 is bought by a corporate entity, an SDLT rate of 15% will apply.
More information on Stamp Duty Land Tax is available from HM Revenue & Customs.
