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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 30 June 2021 

Band: market price

£

Basic SDLT rate Higher SDLT rate

Non-resident

Basic SDLT rate

Non-resident

Higher SDLT rate

Up to 500,000*

0% 3% 2% 5%

500,001 – 925,000

5% 8% 7% 10%

925,001 – 1,500,000

10% 13% 12% 15%

1,500,001 and over

12% 15% 14% 17%

 
From 1 July 2021 to 30 September 2021

Band: market price

£

Basic SDLT rate Higher SDLT rate Non-Resident
Basic SDLT rate
Non-Resident
Higher SDLT rate

Up to 250,000

0% 3% 2% 5%

250,001 – 925,000

5% 8% 7% 10%

925,001 – 1,500,000

10% 13% 12% 15%

1,500,001 and over

12% 15% 14% 17%


From 1 October 2021

Band: market price

£

Basic SDLT rate Higher SDLT rate Non-Resident
Basic SDLT rate
Non-Resident
Higher SDLT rate

Up to 125,000

0% 3% 2% 5%

125,001 – 250,000

2% 5% 4% 7%

250,001 - 925,000

5% 8% 7% 10%

925,001 - 1,500,000

10% 13% 12% 15%
over 1,500,000 12% 15% 14% 17%

 

From 1 April 2016 to 7 July 2020

Band: market price

£

Basic SDLT rate

Higher SDLT rate

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 relief

From 22 November 2017 to 7 July 2020 and from 1 July 2021 onwards

First Time buyers receive a discount on the purchase of their first property provided that the consideration is £500,000 or less.

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

 

 If the purchase price is over £500,000 normal SDLT rates apply.

 

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 unless an exemption applies.

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 extension to the nil rate threshold 

Between July 8 2020 to 31 March 2021 a temporary extension to the nil rate threshold (to £500,000) applies to residential property 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. This was updated on 3 June 2021 to include delays caused by government imposed restrictions or public authority action which prevented 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