Stamp Duty Land Tax in the UK

How much you pay depends on whether the land or property is:

• residential and whether you’re a first-time buyer
• non-residential or mixed-use

You can use HM Revenue and Customs’ (HMRC) Stamp Duty Land Tax calculator to work out how much tax you’ll pay.

You may be able to reduce the amount of tax you pay by claiming relief, such as if you’re a first-time buyer or purchasing more than one property (‘multiple dwellings’).

The total value you pay SDLT on (sometimes called the ‘consideration’) is usually the price you pay for the property or land.

Sometimes it might include another type of payment like:

• goods
• works or services
• release from a debt
• transfer of a debt, including the value of any outstanding mortgage

Find out how to work out the consideration if your situation is complicated.

You must send an SDLT return to HMRC and pay the tax within 14 days of completion.

If you have a solicitor, agent or conveyancer, they’ll usually file your return and pay the tax on your behalf on the day of completion and add the amount to their fees. They’ll also claim any relief you’re eligible for, such as if you’re a first-time buyer.

If they do not do this for you, you can file a return and pay the tax yourself.

There are certain situations where you do not need to send a return.

You may be charged penalties and interest if you do not file your return and make your payment within 14 days of completion.

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.

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’).

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:

• SDLT calculator
• guidance on leasehold purchases

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 residential property

• You pay SDRT on paperless transactions when you buy:
  • shares in a UK company
  • shares in a foreign company with a share register in the UK
  • an option to buy shares
  • rights arising from shares already owned
  • interest in shares, like an interest in the money made from selling them

• Unit trusts and open-ended investment companies (OEICs)
  • Unit trusts and OEICs are dealt with under special rules. When you buy units from a fund manager you’re not charged SDRT. But when units are surrendered the fund manager is charged SDRT. The fund manager pays the SDRT directly to HMRC and usually passes this on to the unit holders through management charges.
  • If you buy units in unit trusts yourself you’ll need to notify HMRC and pay any SDRT due.
  • If you are a financial institution dealing with units in unit trusts or shares in an OEIC you’ll need to send an SDRT notice along with the correct payment to HMRC by the 14th of the month.