Stamp Duty Land Tax & Higher Rate Stamp Duty Land Tax

15th May 2023


Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) formally known as Stamp Duty, is a tax paid by the buyer of a UK residential property to the UK Government. The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there’s no SDLT to pay.

The current SDLT thresholds are:

  • £250,000 for residential properties
  • £425,000 for first-time buyers buying a residential property worth £625,000 or less
  • £150,000 for non-residential land and properties

Higher Rate Stamp Duty Land Tax

Higher rate SDLT applies to anyone buying a second home who isn’t replacing their main residence on the date of completion, for example, a holiday home or buy to let property. This includes the ownership of property anywhere in the world, so, if you own a residential property abroad, and then buy one in the UK, you could find yourself liable for higher rate SDLT. If you purchase a residential property in the name of a company, you will also be liable to the higher rate SDLT.  

The higher SDLT rate is payable on any acquisition over £40,000.00 and the rates range from 3% to 15% of the purchase price depending upon the value of the property.

Are there any exemptions from the higher rate SDLT?

There are several reasons why the higher rate SDLT may not be applicable, some of which are as follows:

  • The freehold property, or your other major interest in a property is worth £40,000 or less
  • Transferral of the property after divorce or dissolution of a civil partnership
  • The property is left in a will

It is advisable to get professional advice in what can be a complicated process, if you need any help in relation to SDLT or any other residential property matters, please get in touch with us and speak to a member of our experienced Residential Conveyancing team.

* Information correct as of May 2023

Share This Post