Stamp Duty Land Tax
What is stamp duty?
Stamp Duty Land Tax (SDLT) is a tax paid on all property purchases over a certain value in the UK.
What do I need to know?
In October 2022, the Government introduced the Stamp Duty Land Tax Bill explaining the main changes to stamp duty land tax and how they will be implemented.
The amount of SDLT you’ll need to pay depends on these factors:
- The price of the property you are buying – rates of SDLT are graded based on the price of a property so that more expensive properties pay higher tax rates
- Whether you're a first-time buyer
If you (and anyone else you’re buying with) are a first-time buyer, you may be able to claim a discount on your SDLT. This means you’ll pay:
|Up to £425,000
|£425,001 to £625,000
|£625,000 and above
|Follow the rules for people who’ve bought a home before
You're a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as follows:
0% on the first £425,000 = £0
5% on the remaining £75,000 = £3,750
Total SDLT = £3,750
Non First-Time Buyers
If you aren’t a first-time buyer, the following SDLT rates will apply:
|Up to £250,000
|£250,001 to £925,000
|£925,001 to £1.5 million
You purchase a property for £500,000. The SDLT you owe will be calculated as follows:
0% on the first £250,000 = £0
5% on the remaining £250,000 = £12,500
Total SDLT = £12,500
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