Stamp Duty Land Tax basics.

What is Stamp Duty?

SDLT is a transaction tax based mainly on the chargeable consideration for a property or land transaction. The rules can differ for residential property, commercial property, additional properties and corporate buyers.

When can it apply?

SDLT starts to apply to a single residential property above £125,000. A first-time buyer may qualify for relief up to £500,000, with no SDLT up to £300,000 and 5% on the portion from £300,001 to £500,000. A 5% higher-rate surcharge normally applies to additional residential properties.

How is it calculated?

For a single residential property, the current bands are 0% to £125,000, 2% on the next £125,000, 5% on the next £675,000, 10% on the next £575,000 and 12% above £1.5 million. Reliefs, non-resident surcharges and buyer status can change the result.

Returns and deadlines

The buyer or their adviser normally submits the SDLT return and pays any tax due within 14 days of the effective transaction date. Keep the submission confirmation with the transaction records.

Buyer responsibilities

• Confirm which UK property tax applies.
• Check the buyer’s status and any surcharge.
• Use current rates and reliefs.
• Submit the return and pay on time.
• Keep contracts, completion statements and supporting evidence.

Related guides.

Check rates, thresholds and deadlines for the correct tax year before you rely on them.