Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) has replaced Stamp Duty. Subject to certain exceptions, it is payable by the purchaser on property transactions by reference to the purchase price.

 

The rates and bands are as follows:

Price band

Rate for one residential property

Rate for second home or buy to let property

Up to £125,000

0%

3%

£125,001 - £250,000

2%

5%

£250,001 - £925,000

5%

8%

£925,001 - £1.5 million

10%

13%

Over £1.5 million

12%

15%

 

The rates apply to the proportion of the purchase price falling into each band.

The new second home or buy to let rates will apply to anyone purchasing a residential property in England and Wales, where they already own a residential property either in England and Wales or another country.


SDLT is payable only on the purchase price and not on any price that may be agreed separately for the purchase of carpets, curtains and the like; it is payable on fixtures but not on fittings. By allocating part of the purchase monies to the purchase of fittings it may sometimes be possible legitimately to bring a transaction into a lower tax band for SDLT but the allowance for fittings must be reasonable and Inland Revenue may enquire into it.

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