Stamp duty land tax

What is Stamp Duty Land Tax?

Stamp Duty Land Tax (SDLT) is a vital consideration for anyone purchasing property in the UK. This tax is applied when you buy a property or land over a certain price threshold and can vary based on the value and type of property.

The tax rate is progressive, meaning the more expensive the property is, the higher the tax you’ll pay. Below are the current SDLT rates for residential property purchases in England and Northern Ireland:

Higher rate stamp duty land tax for purchases of additional residential properties

What is the 5% Stamp Duty surcharge and who pays it?

England and Northern Ireland:

The 5% stamp duty surcharge is an addition to existing Stamp Duty rates (set out in the table above).
The extra tax applies to anyone, whether you are resident or non-resident, who is buying additional residential properties, for example, a buy-to-let or holiday home, within England and Northern Ireland. To see the official guidance please download the following resource.

Scotland and Wales have devolved taxes as follows:

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

Stamp duty land tax surcharge for non residents

Non UK residents and UK companies controlled by non UK residents pay an additional 2% surcharge on the purchase of any residential property costing more than £40,000. 

Non UK resident for these purposes means that you were not present in the UK for at least 183 days prior to the date of purchase. So, whilst you may be resident for Income Tax purposes, you may not be resident for Stamp Duty Land Tax purposes.

To discuss any of the above further please Contact Us – UK Landlord Tax

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