Stamp Duty Land Tax

Everyone talks about it, but how many of us really understand it?

Stamp Duty Land Tax (SDLT) is a tax you pay when you purchase a property in England.

SDLT is the tax payable on any residential property that costs over £125,000.

The amount payable is dependent on your personal circumstances and the property value.

Threshold

The threshold for the tax is currently at £125,00 for residential properties.

Rate bands:

• £0 – £125,000 = No SDLT
• £125,000 – £250,000 = 2% on the amount between £125,000 and £250,000
• £250,000 – £925,000 = 5% on the amount between £250,000 and £925,000

An additional 3% is payable on any additional properties that cost more than £40,000, i.e. a second home or a buy to let property.

First time buyers:

First time buyers will not have to pay Stamp Duty Land Tax on properties up to £300,000.