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What is Stamp Duty Land Tax (SDLT)? What are the rates of Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax (SDLT) is paid on the purchase of an interest in land as a percentage of the purchase consideration. Different rates apply according to the type of property and the type of purchaser.

SDLT rates

Residential Property rates

From 8 July 2020 to 31 March 2021

 

Band: market price

£

Basic SDLT rate Higher SDLT rate First Time Buyer

Up to 500,000

0% 3% 0%

500,001 – 925,000

5% 8% 5%

925,001 – 1,500,000

10% 13% 10%

1,500,001 and over

12% 15% 12%

 

From 1 April 2016 to 7 July 2020

 

Band: market price

£

Basic SDLT rate

Higher SDLT rate

Property costs £40,000 or less

0% 0%

0 -125,000

0%

3%

125,001 – 250,000

2% 5%

250,001 – 925,000

5% 8%

925,001 – 1,500,000

10% 13%

1,500,001 and over

12% 15%

 

First Time buyers

From 22 November 2017 to 7 July 2020

Proportion of consideration   Rate
0-300,000 0%
300,001-500,000 5%

 

Non-UK residents from April 2021

 

Band: market price

£

Non-resident SDLT rate

Property costs £40,000 or less

0%

0 -125,000

5%

125,001 – 250,000

7%

250,001 – 925,000

10%

925,001 – 1,500,000

15%

1,500,001 and over

17%

 

Companies & Non-Natural Persons (NNPs)

The 3% surcharge higher rate (as above) applies on the purchase of residential property.

NNPs pay a 15% rate on certain higher value residential property

Cost

SDLT

rate

From 20/3/2014 over £500,000 15%
From 2/2012 to 19/3/2014 over £2m

 

Non-Natural Persons include:

See SDLT: Residential property higher rates


How SDLT works

Apply the rates specified to the proportion of the purchase price falling within each band.

E.g. A house purchased on 30 June 2020 for £950,000 by a buyer (who is not subject to the higher charge) will attract SDLT of £38,750.

Proportion of consideration   Rate

Amount

£

0 -125,000 0% 0
125,001 – 250,000 2% 2,500
250,001 – 925,000 5% 33,750
925,001 -950,000 10% 2,500
Total   £38,750

 

Non-residential property rates

The SDLT regime for non-residential and mixed-use property changed to a banding system on 17 March 2016.

Non-residential property includes:

Non-residential rates are as follows: 

Band: market price £ 

Non-residential 

0-150,000

0%

150,001 - 250,000

2%

Over 250,000

5%

 

 

SDLT At a glance

Since 1 April 2018 SDLT only applies to properties in England and Northern Ireland.

Coronavirus: temporary reduced rate

Between July 8 2020 to 31 March 2021 a temporary extension to the nil rate threshold (to £500,000) applies for both basic SDLT and higher rates due to the coronavirus. See SDLT: Summer economic update. It was announced at Budget 2021 that this would be extended to 30 June 2021 at the same rate, with a £250,000 limit to apply between 1 July 2021 and 30 September 2021. This is included in draft Finance Bill 2021.

Coronavirus: on 3 June 2020 HMRC updated their guidance on exceptional circumstances that allow refunds following a sale outside of the normal three-year limit to specifically include the impact of COVID-19 preventing the sale. See HMRC higher rates of SDLT

The change to the guidance in England and Northern Ireland follows the Scottish Parliament temporarily extending its refund period for land and buildings transaction tax from 18 months to three years.

Time limits and penalties

The deadline for filing an SDLT Return and paying any tax due is 14 days (30 days to 1 March 2019) from the effective date of the transaction.

There is no penalty for late payment but interest is charged from the due date up to the payment date.

Penalties for late filing:

Tax geared penalties of between 0% and 100% apply if errors are made in a document which leads to a loss of tax, see Penalties: Errors in returns and documents.

See: SDLT: Amending returns

Special SDLT rules