Due to the complex nature of stamp duty and tax planning, this information is offered as a guide only and professional advice should be taken before taking any action.

Stamp Duty Land Tax (SDLT)

2021/2022
Stamp duty is usually 05% on shared over £1,000 All of the UK-residential rates may increase for additional residential properties
UK and NI Residential Band Rate 
0 – £500,000*0%
*£500,001 – £925,0005%
£925,001 – £1,500,00010%
Over £1,000,00012%
*£250,000 from 1 July 2021. From 1 October 2021,0% up to £125,00 0,2% from £125,001 – £250,000 and 5% from £250,001  – £925,000
UK and NI Non-Residential Band 
0 – £150,0000%
£150,001- £250,0002%
Over £250,0005%
UK and NI Net Present Value of Lease* 
0 – £150,0000%
£150,001- £5,000,0001%
Over £5,000,0002%
Residential leases 1% above £125,000

 

2023/2024
Stamp duty is usually 05% on shared over £1,000 All of the UK-residential rates may increase for additional residential properties
UK and NI Residential Band Rate 
0 – £250,000*0%
£250,001 – £925,0005%
£925,001 – £1,500,00010%
Over £1,500,00012%
*£250,000 from 1 July 2021. From 1 October 2021,0% up to £125,00 0,2% from £125,001 – £250,000 and 5% from £250,001  – £925,000
UK and NI Non-Residential Band 
0 – £150,0000%
£150,001- £250,0002%
Over £250,0005%
2022/2023
Stamp duty is usually 05% on shared over £1,000 All of UK-residential rates may increase for additional residential properties
UK and NI Residential Band Rate 
0 – £500,000*0%
*£500,001 – £925,0005%
£925,001 – £1,500,00010%
Over £1,000,00012%
*£250,000 from 1 July 2021. From 1 October 2021,0% up to £125,00 0,2% from £125,001 – £250,000 and 5% from £250,001  – £925,000
UK and NI Non-Residential Band 
0 – £150,0000%
£150,001- £250,0002%
Over £250,0005%
UK and NI Net Present Value of Lease* 
0 – £150,0000%
£150,001- £5,000,0001%
Over £5,000,0002%
Residential leases 1% above £125,000

 

Residential Property

From 4th December 2014 onwards

Transfers of property are subject to Stamp Duty Land Tax on the portion of the purchase price that falls into each of the following rate bands:

Value up to £125,000*Nil
£125,001 to £250,0002%
£250,001 to £925,0005%
£925,001 to £1,500,00010%
Over £1,500,00012%

* The limit for residential property in disadvantaged areas is £150,000. Special rules apply for new zero-carbon homes. A 15% rate applies to properties over £500,000 purchased by certain "non-natural persons".

From 22nd March 2012 to 3rd December 2014

Transfers of property were subject to Stamp Duty Land Tax at the following rates:

Value up to £125,000*Nil
£125,001 to £250,0001%
£250,001 to £500,0003%
£500,001 to £1,000,0004%
£1,000,001 to £2,000,0005%
Over £2,000,0007%

The limit for residential property in disadvantaged areas is £150,000. Special rules apply for new zero-carbon homes. A 15% rate applies to properties over £500,000 purchased by certain "non-natural persons".

Where contracts were exchanged on or before 3 December 2014, and the transaction is completed on 4 December or later, you can choose whether you follow the new or the old rules.

First Time Buyers*

From 22nd November 2017 onwards

Transfers of property are subject to Stamp Duty Land Tax on the portion of the purchase price that falls into each of the following rate bands:

Value up to £300,000Nil
£300,001 - £500,0005%
Over £500,000Standard rates apply

* A first time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.

Non-Residential Property

Up to and including 16th March 2016

Transfers of property are subject to Stamp Duty Land Tax at the following rates:

Value up to £150,000Nil
£150,001 to £250,0001%
£250,001 to £500,0003%
Over £500,0004%
From 17th March 2016 onwards

Transfers of property are subject to Stamp Duty Land Tax on the portion of the purchase price that falls into each of the following rate bands:

Value up to £150,000Nil
£150,001 to £250,0002%
Over £250,0005%
Lease Rentals

SDLT is charged according to the Net Present Value (NPV) of all the rental payments over the term of the lease, with a single rate of 1% on residential NPVs over £125,000 and on non-residential NPVs over £150,000. From 17th March 2016, there is a new 2% rate for high value leases with NPVs over £5m.

VAT is excluded from treatment as consideration provided the landlord has not opted to charge VAT by the time the lease is granted.

Lease Premiums

SDLT on premiums is the same as for transfers of land (except that the zero rate does not apply where rent of over £1,000 annually is also payable).

Buy to Let / Additional Residential Properties

Purchases before 1st April 2016

Where Buy to Let properties or additional residential properties are purchased before 1 April 2016, SDLT is charged at the same rates as Residential Property above.

Purchases on or after 1st April 2016

Additional SDLT rates have been introduced on Buy to Let or additional residential properties purchased on or after 1 April 2016. The full list of rates is as follows:

Transfers of property are subject to Stamp Duty Land Tax on the portion of the purchase price that falls into each of the following rate bands:

£0* - £125,0003%
£125,000 - £250,0005%
£250,001 to £925,0008%
£925,001 to £1,500,00013%
Over £1,500,00015%

*Transactions under £40,000 are charged at 0%. This does not mean that the first £40,000 is taxable at 0%. If the purchase price is £45,000, the full £45,000 is charged 3% stamp duty land tax.

Please note from 22 November 2017 relief from the additional rate can be claimed in the following circumstances:

  • a court order issued on a divorce or dissolution of a civil partnership prevents someone from disposing of their interest in a main residence
  • a spouse buys property from their spouse
  • a person buys a property in a child’s name or on a child’s behalf, where they are doing so in their capacity as the deputy of that child
  • a purchaser adds to their interest in their main residence

Welsh SDLT

The above rates applied to Wales until SDLT was devolved to Wales on 1 April 2018.

Wales – Land Transactions Tax (LTT)

LTT main residential tax rates – freehold transactions
When you buy a residential property the following rates will apply to the portion of the price you pay in each band.

Price ThresholdRate
The portion up to and including £180,0000%
The portion over £180,000 up to and including £250,0003.5%
The portion over £250,000 up to and including £400,0005%
The portion over £400,000 up to and including £750,0007.5%
The portion over £750,000 up to and including £1,500,00010%
The portion over £1,500,00012%

When you buy a residential property and you already own one or more residential properties you may need to pay the higher residential rates. However, if you are replacing your main residence the higher rates may not apply. When companies buy residential properties they will have to pay the residential higher rates and when trusts buy residential properties they may have to pay the residential higher rates. The LTT higher rates are 3% on top of the main residential rates.

LTT main non residential tax rates – freehold transactions

When you buy a non-residential property the following rates will apply to the portion of the price you pay in each band.

Price ThresholdRate
The portion up to and including £150,0000%
The portion over £150,000 up to and including £250,0001%
The portion over £250,000 up to and including £1,000,0005%
The portion over £1,000,0006%

LTT leasehold transactions

When you buy a non-residential leasehold property you may be required to pay LTT on the purchase price of a newly granted lease (the ‘lease premium’) using the rates above. However, if you also pay rent on the grant of a lease, rules may apply that remove the 0% threshold.The rent over the term of a newly granted lease may be liable to LTT and is calculated on its net present value (NPV).

NPV ThresholdRate
The portion up to and including £150,0000%
The portion over £150,000 up to and including £2,000,0001%
The portion over £2,000,0002%

Land and Buildings Transaction Tax (LBTT)

On 1 April 2015, SDLT in Scotland was replaced by Land and Buildings Transaction Tax (LBTT). LBTT is charged at different rates depending on the portion of the purchase price that falls into each of the following rate bands:

Residential conveyances

First time buyers are entitled to LBTT relief up to £175,000.

10%
Value up to £145,000Nil
£145,001 to £250,0002%
£250,001 to £325,0005%
£325,001 to £750,000
Over £750,00012%
Non-Residential Property

Proposed addition of new 2% band from 7 February 2020.

Value up to £150,000Nil
£150,001 to £2,000,0001%
Over £2,000,0002%
Lease Rentals for Residential Property

These are exempt from LBTT unless they are for longer than 175 years.

Lease Rentals for Non-Residential Property

Duty is charged according to the NPV of all the rental payments over the term of the lease, with a single rate of 1% on non-residential NPVs over £150,000.

Lease Premiums

LBTT on premiums is the same as for transfers of land (except that the zero rate does not apply where rent of over £1,000 annually is also payable).

Buy to Let

Purchases before 1st April 2016

Where Buy to Let properties or additional residential properties are purchased before 1 April 2016, LBTT is charged at the same rates as Residential Property above.

Purchases on or after 1st April 2016

Additional LBTT rates have been introduced on Buy to Let or additional residential properties purchased on or after 1 April 2016. The full list of rates is as follows:

Transfers of property are subject to Land and Buildings Transaction Tax on the portion of the purchase price that falls into each of the following rate bands:

Up to £40,000Nil
£40,001 to £145,0004%
£145,001 to £250,0006%
£250,001 to £325,0009%
£325,001 to £750,00014%
Over £750,00016%

*Transactions under £40,000 are charged at 0%. This does not mean that the first £40,000 is taxable at 0%. If the purchase price is £45,000, the full £45,000 is charged 3% LBTT (4% for transactions entered into from 12th December 2018).

Please contact us for further information