Stamp Duty
SDLT, or Stamp Duty Land Tax to give it its full name, is a lump sum tax paid by anyone buying property (or land for that matter) in England or Northern Ireland.
Whether you are purchasing the property for freehold, leasehold, through a shared ownership scheme, or exchange as part payment, Stamp Duty will need to be paid but the amount will depend on several factors.
For all residential properties, the current minimum threshold is £250,000 but in certain circumstances, you may be eligible for a discount. For example, first-time buyers currently receive Stamp Duty Relief if the property is under £425,000.
You may also be able to reduce the amount of Stamp Duty if you are purchasing Multiple Dwellings. For more information, speak to one of our advisers or head over to the GOV.UK website.
If the property you are purchasing is an additional Buy to Let or second property, there will be an additional 5% stamp duty surcharge.
Property bought in Scotland is instead liable for Land and Buildings Transaction Tax and property in Wales has Land Transaction Tax.
IMPORTANT NOTICE: CHANGES TO STAMP DUTY LAND TAX (SDLT)
Following the government’s recent budget announcement, the temporary increase to the Stamp Duty Land Tax (SDLT) thresholds will end on 31 March 2025, with SDLT rates set to rise from 1 April 2025.
While we always strive to facilitate the completion of transactions as quickly as reasonably possible, we cannot guarantee completion before 31 March 2025. We strongly recommend that you plan your finances accordingly, taking into account the potential increase in SDLT rates that may apply to your transaction.
To find out about current Stamp Duty Tax bandings, and future rates or use our Stamp Duty Calculator, read on…
Stamp Duty Calculator
The current bandings for residential properties are:
| Purchase Price | Investor | FT Buyer (Residential) | Next Time Buyer (Residential) | |||||||||
Up to £250,000 | 5% | 0% | 0% | |||||||||
£250,000.01 – £425,000 £425,000.01 – £925,000 | 10% 10% | 0% 5% | 5% 5% | |||||||||
£925,000.01 – £1,500,000 | 15% | 10% | 10% | |||||||||
> £1,500,000.01 | 17% | 12% | 12% | |||||||||
Bandings for residential properties are from 1 April 2025:
| Purchase Price | Investor | FT Buyer (Residential) | Next Time Buyer (Residential) | |||||||||
Up to £125,000 | 5% | 0% | 0% | |||||||||
£125,000.01 – £250,000 | 7% | 0% | 2% | |||||||||
£250,000.01 – £300,000 £300,000.01 – £925,000 | 10% 10% | 0% 5% | 5% 5% | |||||||||
£925,000.01 – £1.5 million | 15% | 10% | 10% | |||||||||
> £1,500,000.01 | 17% | 12% | 12% | |||||||||
When purchasing any property we strongly recommend that you seek professional tax advice as well, as upon disposal of your property, purchase costs including stamp duty can be offset to mitigate your CGT liability
Coupled with the recent changes to personal taxation – Limited Company Mortgages are becoming more popular than ever before.
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