Stamp Duty Land Tax (SDLT) is a form of tax that needs to be paid to HM Revenue & Customs when purchasing a property or land in England and Northern Ireland. The specific amount of SDLT payable, or whether it needs to be paid at all, is determined by both the purchase price of the property or land and the buyer’s individual circumstances.
The total value you SDLT on is usually the price you pay for property or land. The consideration is defined as money or money’s worth.
Sometimes it might include another type of payment like:
A 3% surcharge will apply on top of the rates stated above if the purchase of your new residential dwelling means you will own more than one.
However, if you are replacing your current main residence that has been sold then the extra 3% surcharge will not apply.
If you cannot sell your property in time but you do manage to sell it within 3 years you can apply for a refund from HMRC for the additional amount of tax
SDLT is charged at 15% on residential properties costing more than £500,000 bought by corporate bodies or non-natural persons:
The 15% does not apply if property is bought by a company acting as a trustee of a settlement.
There is relief available as long as one of the conditions in the legislation can be satisfied.
An additional 2% surcharge will apply on purchases of Residential property by non-UK residents. The surcharge also applies to certain UK resident companies that are controlled by non-UK residents. The additional 2% doesn’t apply to mixed use or non-residential properties.
This depends on the following:
The Legislation allows for a number of reliefs and exemptions which could reduce the amount of tax paid by the purchaser.
Relief for First time buyers