Stamp Duty on Property
Due to the complex nature of stamp duty and tax planning this information is offered as a guide only and professional advice should be taken before taking any action. Stamp Duty on the purchase or transfer or shares and securities at a value over £1000 is calculated at 0.5%, rounded up to the nearest £5.
Residential Property
rates refer to England only
From 22nd March 2012 to 3rd December 2014
Transfers of property were subject to Stamp Duty Land Tax at the following rates:
| Value up to £125,000* | Nil |
| £125,000 – £250,000 | 1% |
| 250,001 – £500,000 | 3% |
| £500,001 – £1,000,000 | 4% |
| £1,000,000 – £2,000,000 | 7% |
*The limit for residential property in disadvantaged areas is £150,000. Special rules applied for new zero-carbon homes. A 15% rate applied to properties over £500,000 (£2,000,000 prior to the 20th March 2014) purchased by certain “non-natural persons”.
From 4th December 2014 onwards
Transfers of property are subject to Stamp Duty Land Tax on the portion of the purchase price that falls into each of the following rate bands:
| Value up to £125,000* | Nil |
| £125,000 – £250,000 | 2% |
| 250,001 – £500,000 | 5% |
| £500,001 – £1,000,000 | 10% |
| £1,000,000 – £2,000,000 | 12% |
*The limit for residential property in disadvantaged areas is £150,000. Special rules apply for new zero-carbon homes. A 15% rate applies to properties over £500,000 purchased by certain “non-natural persons”.
Where contracts were exchanged on or before 3 December 2014, and the transaction is completed on 4 December or later, you can choose whether you follow the new or the old rules.
First Time Buyers*
From 22nd November 2017 onwards
Transfers of property are subject to Stamp Duty Land Tax on the portion of the purchase price that falls into each of the following rate bands:
| Value up to £300,000 | Nil |
| £300,001 – £500,000 | 5% |
| Over £500,000 | Standard rates apply |
*A first time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.
Non-Residential Property
Up to and including 16th March 2016
Transfers of property are subject to Stamp Duty Land Tax at the following rates:
| Value up to £150,000 | Nil |
| £150,001 – £250,000 | 1% |
| £250,000 – £500,000 | 3% |
| Over £500,000 | 4% |
From 17th March 2016 onwards
Transfers of property are subject to Stamp Duty Land Tax on the portion of the purchase price that falls into each of the following rate bands:
| Value up to £150,000 | Nil |
| £150,001 – £250,000 | 2% |
| Over £250,000 | 5% |
Lease Rentals
SDLT is charged according to the Net Present Value (NPV) of all the rental payments over the term of the lease, with a single rate of 1% on residential NPVs over £125,000 and on non-residential NPVs over £150,000. From 17th March 2016, there is a new 2% rate for high value leases with NPVs over £5m.
VAT is excluded from treatment as consideration provided the landlord has not opted to charge VAT by the time the lease is granted.
Lease Premiums
SDLT on premiums is the same as for transfers of land (except that the zero rate does not apply where rent of over £1,000 annually is also payable).
Buy to Let / Additional Residential Properties
Purchases before 1st April 2016
Where Buy to Let properties or additional residential properties are purchased before 1 April 2016, SDLT is charged at the same rates as Residential Property above.
Purchases on or after 1st April 2016
Additional SDLT rates have been introduced on Buy to Let or additional residential properties purchased on or after 1 April 2016. The full list of rates is as follows:
Transfers of property are subject to Stamp Duty Land Tax on the portion of the purchase price that falls into each of the following rate bands:
| £0* – £125,000 | 3% |
| £125,001 – £250,000 | 5% |
| £250,001 – £925,000 | 8% |
| £925,001 – £1,500,000 | 13% |
| Over £1,500,000 | 15% |
*Transactions under £40,000 are charged at 0%. This does not mean that the first £40,000 is taxable at 0%. If the purchase price is £45,000, the full £45,000 is charged 3% stamp duty land tax.
Please note from 22 November 2017 relief from the additional rate can be claimed in the following circumstances:
a court order issued on a divorce or dissolution of a civil partnership prevents someone from disposing of their interest in a main residence a spouse buys property from their spouse a person buys a property in a child’s name or on a child’s behalf, where they are doing so in their capacity as the deputy of that child a purchaser adds to their interest in their main residence Welsh SDLT
Please contact us for further information.
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