Stamp Duty Land Tax rates
You have to pay Stamp Duty Land Tax (SDLT) if you buy a property in the UK over a certain price. This is charged on all purchases of houses, flats and other land and buildings.
The SDLT rate depends on:
- the purchase price of the property
- whether the property is residential
SDLT may also be due if you lease a property – see below.
Residential properties
| Purchase price of property | Rate of SDLT (percentage of the total purchase price) |
|---|---|
| £0 – £125,000 | 0% |
| £125,001 – £250,000 | 1% |
| £250,001 – £500,000 | 3% |
| £500,001 – £1 million | 4% |
| Over £1 million – £2 million | 5% |
| Over £2 million | 7% |
| Over £2 million bought by corporate bodies | 15% |
Corporate bodies
SDLT is charged at 15% on residential dwellings costing more than £2 million bought by bodies like:
- companies
- collective investment schemes
There are some exceptions. You’ll only need to pay 7% if you meet certain criteria. For example, where the property is used for:
- a property rental business
- a property development or resale trade
- providing admission to visitors on a commercial basis
Residential leases
If your residential lease is for more than £125,000, you’ll pay 1% SDLT on the amount above the £125,000 threshold.
Non-residential and mixed-use properties
| Purchase price/lease premium or transfer value | Rate of SDLT (percentage of the total purchase price) |
|---|---|
| Up to £150,000 – annual rent is less than £1,000 | Zero |
| Up to £150,000 – annual rent is £1,000 or more | 1% |
| Over £150,000 to £250,000 | 1% |
| Over £250,000 to £500,000 | 3% |
| Over £500,000 | 4% |
HM Revenue and Customs (HMRC) has SDLT calculators you can use to work out how much to pay.