You usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price above £125,000 when you buy residential property, for example a house or flat.
There are different rules if you’re buying your first home and the purchase price is £500,000 or less. You usually pay Use the SDLT calculator to work out how much tax you’ll pay.
You must still send an SDLT return for transactions under £125,000 unless they’re exempt.
Rates on your first home
You can claim a discount (relief) so you do not pay any tax up to £300,000 and 5% on the portion from £300,001 to £500,000.
You’re eligible if:
- you, and anyone else you’re buying with, are first-time buyers
- you complete your purchase on or after 22 November 2017
If the price is over £500,000, you follow the rules for people who’ve bought a home before.
If you paid SDLT on a shared ownership property between 22 November 2017 and 29 October 2018
You can apply for a refund if you paid SDLT but you did not get relief.
Write to HMRC and include:
- the Unique Transaction Reference Number (UTRN) from your SDLT return - ask your solicitor if you’re not sure
- how much you overpaid
- your bank or building society account name, number and sort code
You must get your application to HMRC by 28 October 2019.
You can also ask HMRC to send the refund to someone else, for example your solicitor.
Rates if you’ve bought a home before
Freehold sales and transfers
You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’).
| Property or lease premium or transfer value | SDLT rate |
|---|---|
| Up to £125,000 | Zero |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
ExampleIf you buy a house for £275,000, the SDLT you owe is calculated as follows:
- 0% on the first £125,000 = £0
- 2% on the next £125,000 = £2,500
- 5% on the final £25,000 = £1,250
- Total SDLT = £3,750
New leasehold sales and transfers
When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the ‘lease premium’) using the rates above.
If the total rent over the life the lease (known as the ‘net present value’) is more than £125,000, you also pay SDLT of 1% on the portion over £125,000 - unless you buy an existing (‘assigned’) lease.
You can work out how much SDLT you’ll pay for your new residential lease using HMRC’s:
Higher rates for additional properties
You’ll usually have to pay 3% on top of the normal SDLT rates if buying a new residential property means you’ll own more than one.
Use the SDLT calculator to work out how much tax you’ll pay.
You may not have to pay the higher rates if you exchanged contracts before 26 November 2015.
If you’re replacing your main residence
You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.
If there’s a delay selling your main residence and it has not been sold on the day you complete your new purchase:
- you’ll have to pay higher rates because you own 2 properties
- you may be able to get a refund if you sell your previous main home within 36 months
There are special rules if you own property with someone else or already own a property outside England, Wales and Northern Ireland.
Special rates
There are different SDLT rules and rate calculations for:
- corporate bodies
- people buying 6 or more residential properties in one transaction
- shared ownership properties
- multiple purchases or transfers between the same buyer and seller (‘linked purchases’)
- purchases that mean you own more than one property
- companies and trusts buying reside
