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.
On this page:
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').
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.
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 per cent, so £1,300 must be paid in SDLT. A house bought for £350,000 is charged at 3 per cent, so SDLT of £10,500 is payable.
From 22 March 2012 SDLT on residential properties over £2 million is charged at 7 per cent 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 per cent rate will apply. This only applies where the contract is unconditional and unaltered on or after 21 March 2012.
From 21 March 2012 SDLT is charged at 15 per cent 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 per cent rate will apply. This only applies where the contract is unconditional and unaltered on or after 21 March 2012.
If the property is in an area designated by the government as 'disadvantaged' a higher threshold of £150,000 applies for residential properties.
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
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 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).
In practice SDLT only becomes payable on a fairly high rent - starting at around £4,500 a year for a 99-year lease, for example. However the exact amount depends on the length of the lease.
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 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.
Non-residential property includes:
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.
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.
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:
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
HMRC has developed online calculators which work out the amount of SDLT payable on residential, non-residential and mixed transactions in land and property.
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
