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Stamp Duty Land Tax rates and thresholds

Stamp Duty Land Tax (SDLT) is charged on land and property transactions in the UK. The tax is charged at different rates and has different thresholds for different types of property and different values of transaction.

The tax rate and payment threshold can vary according to whether the property is in residential or non-residential use, and whether it is a freehold or leasehold. SDLT relief is available for certain kinds of property or transaction.

This guide provides an overview of the SDLT rates and provides links to related guidance where necessary.

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SDLT rates for residential property

The table below applies for all freehold residential purchases and transfers and the premium paid for a new lease or the assignment of an existing lease. (If the property will be used for both residential and non-residential purposes the rates differ - please see the section 'SDLT for non-residential or mixed use property').

New leases

If the transaction involves the purchase of a new lease with a substantial rent there may be an additional SDLT charge to that shown below, based on the rent. See the next section and further table 'SDLT on rent for new leasehold properties (residential)' for more detail.

Residential land or property SDLT rates and thresholds

Purchase price/lease premium or transfer value

SDLT rate

Up to £125,000

Zero

Over £125,000 to £250,000

1%

Over £250,000 to £500,000

3%

Over £500,000 to £1 million

4%

Over £1 million to £2 million

5%

Over £2 million from 22 March 2012 7%
Over £2 million (purchased by certain persons including corporate bodies) from 21 March 2012 15%

If the value is above the payment threshold, SDLT is charged at the appropriate rate on the whole of the amount paid. For example, a house bought for £130,000 is charged at 1%, so £1,300 must be paid in SDLT. A house bought for £350,000 is charged at 3%, so SDLT of £10,500 is payable.

£2 million threshold for wholly residential property

From 22 March 2012 SDLT on residential properties over £2 million is charged at 7%. It does not apply to non-residential or mixed-use properties.

If you exchanged contracts before the higher rate came into force on 22 March 2012 the 5% rate will apply.

Higher rate for corporate bodies

From 21 March 2012 SDLT is charged at 15% on interests in residential dwellings costing more than £2 million purchased by certain non-natural persons. This broadly includes bodies corporate, for example companies, collective investment schemes and all partnerships with one or more members who are either a body corporate or a collective investment scheme. There are exclusions for companies acting in their capacity as trustees for a settlement and property developers who meet certain conditions.

If you exchanged contracts before the higher rate charge came into force on 21 March 2012, the 5% will apply.

Annual Tax on Enveloped Dwellings is a tax payable by companies on high value residential property (a dwelling) and came into effect on 1 April 2013 and is payable each year.

Information about Annual Tax on Enveloped Dwellings

Properties bought in a disadvantaged area

Disadvantaged Areas Relief was abolished for transactions with an effective date on or after 6 April 2013.

All claims to this relief must be made on or before 5 May 2014. Claims made after that date will not be accepted.

If the property is in an area designated by the government as 'disadvantaged' a higher threshold of £150,000 applies for residential properties.

Disadvantaged areas - residential land or property SDLT rates and thresholds

Purchase price/lease premium or transfer value

SDLT rate

Up to £150,000

Zero

Over £150,000 to £250,000

1%

Over £250,000 to £500,000

3%

Over £500,000 to £1 million

4%

Over £1 million to £2 million

5%

Over £2 million from 22 March 2012 7%
Over £2 million (purchased by certain persons including corporate bodies) from 21 March 2012 15%

Read more about Disadvantaged Areas Relief

SDLT on rent - new residential leasehold purchase

When a new residential lease has a substantial annual rent, SDLT is payable on both of the following, which are calculated separately and then added together:

  • the lease premium (purchase price) - see the table above
  • the 'net present value' (NPV) of the rent payable

The NPV is based on the value of the total rent over the life of the lease and can be worked out using HMRC's online calculator (link below).

SDLT on rent for new leasehold properties (residential)

Net present value of rent - residential

SDLT rate

£0 - £125,000

Zero

Over £125,000

1% of the value that exceeds £125,000

Read more about calculating SDLT for leasehold purchases

Go to the SDLT lease calculator

If six or more residential properties form part of a single transaction

If six or more properties form part of a single transaction the rules, rates and thresholds for non-residential properties apply. The amounts paid for all the properties in the transaction must be added together in order to establish the rate of tax payable.

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SDLT rates for non-residential or mixed use properties

Non-residential property includes:

  • commercial property such as shops or offices
  • agricultural land
  • forests
  • any other land or property which is not used as a dwelling
  • six or more residential properties bought in a single transaction

A mixed use property is one that incorporates both residential and non-residential elements.

The table below applies for freehold and leasehold non-residential and mixed use purchases and transfers.

If the transaction involves the purchase of a new lease with a substantial annual rent, there may be additional SDLT charge to that shown below, based on the rent. See the later section and table for more detail.

Non-residential land or property rates and thresholds

Purchase price/lease premium or transfer value (non-residential or mixed use)

SDLT rate

Up to £150,000 - annual rent is under £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%

Note that for the above purpose the annual rent is the highest annual rent known to be payable in any year of the lease, not the net present value used to determine any tax payable on the rent as described below.

SDLT on rent - new non-residential or mixed use leasehold purchase

When a new non-residential or mixed use lease has a substantial annual rent, SDLT is payable on both of the following which are calculated separately and then added together:

  • the lease premium or purchase price - see the table above
  • the net present value of the rent payable (this is based on the value of the total rent over the life of the lease and can be worked out using HMRC's online calculators)

SDLT on rent for new leasehold properties (non-residential or mixed use)

Net present value of rent - non-residential

SDLT rate

£0 - £150,000

Zero

Over £150,000

1% of the value that exceeds £150,000

Read more about calculating SDLT for leasehold purchases

Go to the SDLT lease calculator

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Using the HMRC SDLT online calculators

HMRC has developed online calculators which work out the amount of SDLT payable on residential, non-residential and mixed transactions in land and property.

Go to HMRC's SDLT calculators

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SDLT and Stamp Duty rates before 25 March 2012

Follow the links below to check SDLT and Stamp Duty rates in earlier tax years.

SDLT rates from 6 April 2011 until 24 March 2012

SDLT rates from 25 March 2010 until 5 April 2011

SDLT rates from 1 January 2010 until 24 March 2010

SDLT rates 22 April 2009 until 31 December 2009

SDLT rates 3 September 2008 until 21 April 2009

SDLT rates from 12 March 2008 until 2 September 2008

SDLT rates from 23 March 2006 until 11 March 2008

SDLT rates from 17 March 2005 until 22 March 2006

SDLT rates from 1 December 2003 until 16 March 2005

Rates of Stamp Duty on land transfers before December 2003

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