You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England, Wales and Northern Ireland.

The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.

Stamp duty rates have increased for anyone purchasing an additional property. From April 2016 a 3% surcharge has been applied on top of the normal SDLT rate. This means buy to let purchases now attract higher levels of SDLT unless individual ownership is limited to a single property.

From November 2017, stamp duty will not be payable on properties up to £300,000 for first time buyers. First-time buyers of homes worth up to £500,000 will not pay STLD on the first £300,000 of the price. You will pay Stamp Duty on the remaining amount, up to £200,000 at 5%.

Property Price   Ownership First Time Buyer
Price Band Rate % Taxable Amount Tax To Pay
Up to £125,000 0%£125,000£0
Between £125,000 & £250,000 2%£125,000£2,500
Between £250,000 & £925,000 5%£125,000£6,250
Between £925,000 & £1,500,000 10%£0£0
Above £1,500,000 12%£0£0
Effective Tax Rate 2.33%
Total Tax £8,750

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