Stamp duty rates for UK residents

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Stamp Duty Land Tax (SDLT) is a tax charged on the purchase or acquisition of property or land over a certain price in England and Northern Ireland. The tax is different if the property or land is situated in Scotland or Wales.

Where a property is a second property and costs more than £40,000, the rate will be 5% above the standard rates. Where there is a non-resident buying all or part of a property there is an additional 2% surcharge on the whole of any property costing more than £40,000.

Stamp Duty Land Tax Rates for residential properties in England and Northern Ireland (UK residents only) – Updated for Autumn Budget on 30th October 2024

If you are purchasing an additional property higher rates of SDLT will apply. You will pay an additional 5% above the standard rates of SDLT where you already own a property. They do not apply to purchases of property under £40,000 or purchases of caravans, mobile homes and houseboats.

If you are considering purchasing a property we would strongly advise that you read these FAQ’s to find an answer to your particular situation. If you are still none the wiser, please, do NOT assume anything but get in touch and be certain of the SDLT position before you do anything.

Number of residential properties owned before purchase:	Zero	One or more
Property or lease premium cost or transfer value:
Up to £40,000 only	0%	0%

Up to £250,000 (where cost is greater than £40,000)	0%	5%
The next £675,000 (the portion from £250,001 to £925,000)	5%	10%
The next £575,000 (the portion from £925,001 to £1.5 million)	10%	15%
The remaining amount (the portion above £1.5 million)	12%	17%

The higher rate of Stamp Duty does not apply to the following:
1. The property is worth less than £40,000
2. The property has a mixture of residential and non-residential aspects (for example a shop and a flat above)

Transferring Property with an outstanding mortgage

Joint owners of a property may agree that just one of them will take over ownership of a property they originally bought together, including any outstanding mortgage. If the share of the outstanding mortgage that is being transferred plus any consideration is more than £40,000 there will be SDLT due on the proportion of the outstanding mortgage that belongs to the share of the property being transferred even when no money is being exchanged. The 5% additional SDLT rate is not applied when an individual is purchasing a property from their spouse/civil partner provided that both individuals are living together (they do not have to be living in the property that is being transferred).

There is no SDLT due on a gift of a property provided that no outstanding mortgage is taken over. If the mortgage is more than £40,000, there may be a SDLT charge.

Land Transaction Tax Rates for residential properties in Scotland and Wales

The relevant rates for the Scotland and Wales can be found at the following.

Scotland – Land and Buildings Transaction Tax – https://revenue.scot/taxes/land-buildings-transaction-tax

Wales – Land Transaction Tax – https://gov.wales/land-transaction-tax-calculator

DISCLAIMER
© Thandi Nicholls Ltd 2024 All Rights Reserved – The above articles are provided for guidance only and may not cover your personal circumstances so you should not rely on them. It is important that you seek appropriate professional advice which takes into account your personal circumstances where you can provide the full facts of the case and all documents related to your case. Thandi Nicholls Ltd t/a uklandlordtax.co.uk cannot be held responsible for the consequences of any action or the consequences of deciding not to act.

Stamp duty rates for UK residents

Stamp Duty Land Tax Rates for residential properties in England and Northern Ireland (UK residents only) – Updated for Autumn Budget on 30th October 2024

Land Transaction Tax Rates for residential properties in Scotland and Wales

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