What is Stamp Duty Land Tax?
SDLT is a government tax on property purchases over £125,000 in England and Northern Ireland. Rates are tiered, here's how to calculate yours.
Stamp Duty Land Tax (SDLT) is the government tax on residential property purchases in England and Northern Ireland. Scotland has LBTT; Wales has LTT. Each is calculated separately.
How the bands work. SDLT is tiered, not flat. On a £400,000 standard purchase: - £0 to £125,000: 0% = £0 - £125,001 to £250,000: 2% = £2,500 - £250,001 to £400,000: 5% = £7,500 - Total: £10,000
Each portion of the price is taxed at the band it falls in, so you never pay the highest rate on the whole amount.
When it applies. You pay SDLT on: - Residential purchases over £125,000 (or £300,000 for first-time buyers under the relief) - Additional properties (second homes, buy-to-lets): every band gets a 5% surcharge - Non-UK residents: a further 2% surcharge - Commercial property: different bands apply
Who pays it. The buyer. Your solicitor files the SDLT return within 14 days of completion and transfers the tax directly to HMRC. You don't pay anything to us. Your conveyancing fee is separate.
Don't forget. SDLT comes out of your cash, not your mortgage. Most mortgage lenders won't include SDLT in your borrowing, so you need to have the amount saved alongside your deposit and fees.
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