In this section:
- Stamp Duty Land Tax (SDLT): the basics
- Stamp Duty Land Tax rates and thresholds
- Stamp Duty Land Tax for different types of transaction
- Stamp Duty Land Tax reliefs and exemptions
- Completing and filing the Stamp Duty Land Tax Return
- Stamp Duty Land Tax filing deadlines and payment
- Amending an SDLT return or certificate
- HMRC enquiries into SDLT returns
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.
On this page:
- SDLT rates for residential property
- SDLT rates for non-residential or mixed use properties
- Using the HMRC SDLT online calculators
- SDLT and Stamp Duty rates up to September 2008
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 thresholds from September 2008
The £175,000 threshold shown in the table applies from 3 September 2008 until 31 December 2009 inclusive (unless the lease is for less than 21 years - see the later section on this). The new threshold means that Disadvantaged Areas Relief, previously available for properties in areas designated as 'disadvantaged', doesn't apply during this period. Read more about this relief in section 'Properties bought in a disadvantaged area'.
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 £175,000 (until 31 December 2009 - see note above) | Zero |
| Over £175,000 to £250,000 | 1% |
| Over £250,000 to £500,000 | 3% |
| Over £500,000 | 4% |
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 £180,000 is charged at 1 per cent, so £1,800 must be paid in SDLT. A house bought for £350,000 is charged at 3 per cent, so SDLT of £10,500 is payable.
Special rules for residential leases of less than 21 years
Note that the temporary SDLT threshold of £175,000 for residential property transactions does not apply to:
- the assignment of an existing lease which has less than 21 years to run
- the grant of a lease for a term of less than 21 years
In these cases the normal thresholds of £125,000 (£150,000 if the property is situated in a disadvantaged area) apply.
Properties bought in a disadvantaged area
Disadvantaged Areas Relief (whereby residential properties bought in areas designated by the government as 'disadvantaged' had a higher SDLT threshold of £150,000) will not apply for residential only property purchases between 3 September 2008 and 31 December 2009 inclusive. Instead the SDLT threshold will be the same as for all other residential property as shown above. The only exception is where the lease is for less than 21 years - as described earlier.
Some property transactions in a disadvantaged area may have both residential and non-residential parts - eg a shop with a flat above. In this case the temporary £175,000 threshold between 3 September 2008 and 31 December 2009 inclusive does not apply. For SDLT purposes, the property value is apportioned on a fair and reasonable basis between the two uses. If the amount attributed to the residential element does not exceed £150,000 then Disadvantaged Areas Relief will apply to that element and a separate £150,000 threshold applies to the non-residential element.
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).
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 threshold depends on the length of the lease.
SDLT on rent for new leasehold properties (residential)
| Net present value of rent - residential | SDLT rate |
|---|---|
| £0 - £175,000 | Zero |
| Over £175,000 | 1% of the value that exceeds £125,000 |
If the NPV exceeds £175,000 tax is due at 1% on the excess over the normal £125,000 threshold not the new temporary level of £175,000
For example, if the NPV of the rent on a new residential lease totals £200,000, then the SDLT on this rent is 1% of £75,000, or £750. This charge is then added to the SDLT charged on the premium paid for the new lease, shown in the previous table.
Different rates apply for mixed use purchases - see the later section on this.
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.
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
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.
SDLT and Stamp Duty rates up to September 2008
Follow the links below to check SDLT and Stamp Duty rates in earlier tax years.
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
