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Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) is payable when you buy property or land over a certain price in England and Northern Ireland.

UK Residents

Thresholds

As of the 1st October 2021 the thresholds were:

  • 125,000 for residential properties
  • 150,000 for non-residential land and properties

First time buyers are eligible for a relief providing they are first-time buyers and the purchase price is 500,000 or less.

How much you pay

How much you pay depends on whether the land or property is residential use or non-residential or mixed-use.

If you’re buying a residential property there are different rates of SDLT if:

  • you’re a first-time buyer
  • you already own a property and you’re buying an additional property
  • you’re not a UK resident

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 value you pay SDLT on (the ‘consideration’)

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.

How and when to pay

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.

Non-UK Residents

From 1 April 2021, new increased rates of Stamp Duty Land Tax (SDLT) apply to purchases of residential property in England and Northern Ireland by non-UK residents. The rates are 2% above those applying to UK residents. Property buyers should be aware of the increased rates, so that they can budget for SDLT.

Individuals buying a property will be classed as non-resident if, in the year before their purchase (usually at the date of completion), they have been outside of the UK for 183 days or more. Where two or more people are buying the property, the increased rates will apply if any of them is a non-UK resident.

Different rules apply for purchases by companies, trusts and other non-individual buyers.

Find more information on this change and on SDLT at GOV.UK or contact AJR & Co Ltd for further advice