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This guide is a freeview at a glance guide. Subscribers see here

SDLT applies to properties in England and Northern Ireland:

At a glance

From 1 April 2016 SDLT is charged at a higher rate on the purchase of:

For individuals, the higher rate applies to your purchase if at the end of the day you buy the property conditions A to D are all met:

Condition A: The chargeable consideration for the purchase is £40,000 or more.

Condition B: On the effective date of the transaction the property you are purchasing:
(a) is not subject to a lease, or
(b) is subject to such a lease but the lease has 21 years or less left to run on it.

Condition C: At the end of the day that is the effective date of the transaction:
(a) you have a major interest in another dwelling other than the one you are buying,
(b) that interest has a market value of £40,000 or more, and
(c) that interest is not reversionary on a lease which has a remaining term of more than 21 years.

Condition D: You are not replacing your only or main residence.

For companies, any purchase of a dwelling is subject to higher rates if conditions A and B are met.

The bands and higher rates are as follows:

Band: market price £ Additional  SDLT dwellings/dwellings from 1 April 2016.
0- 40,000 0%
0 -125,000 3%
125,001 – 250,000 5%
250,001 – 925,000 8%
925,001 – 1,500,000 13%
1,500,001 and over 15%

 

What's new?

See Subscriber Guide: SDLT Residential Property Higher Rates

What do the higher rates apply to?

The higher rate only applies to purchases of major interests in dwellings.

What is a dwelling?

‘Dwelling’ takes its everyday meaning and is a building or part of a building that is:

The definition of a dwelling is related to the definition of a residential property (for SDLT), however it has not the same meaning.

A dwelling includes:

The following are not treated as dwellings and the higher rate charge does not apply:

SDLT FAQs

See Subscriber Guide: SDLT Residential Property /what is a dwelling?

Multiple dwellings relief (MDR): purchase of more than one dwelling

What does HMRC say about mixed use properties?

See What is residential property for SDLT?

Is there any relief if property is purchased for use as a dwelling in a trade?

Yes but only in limited circumstances. See Subscriber Guide: SDLT Residential Property Higher Rates

Married couples

Joint ownership

If two or more people own or purchase property jointly, if any of the joint purchasers has two or more properties at the end of the transaction date and they are not replacing a main residence, the whole of the consideration is subject to the higher rates of SDLT.

Special rules for business partners

When a partnership in which you are a partner owns a dwelling used for the partnership’s trade. See Subscriber Guide: SDLT Residential Property Higher Rates

Special rules for inherited properties

What is classed as my main residence?

What are the conditions for relief if I am replacing my main residence?

Links to our useful guides:

SDLT: Residential property (dwellings): higher rate
A guide to the SDLT higher rate charge on residential property, when it applies and what reliefs are available.

SDLT: Annexes and multiple dwelling relief
What is multiple dwellings relief? When does it apply and how is it claimed?