What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a self-assessment tax on property transactions. With calculations influenced by both property attributes and purchaser tax status, existing online calculators fail to include all rates and reliefs. The task of calculating SDLT often falls to the solicitor or conveyancer. With so many rates and reliefs to take into account the risk of liability leads conveyancers to use standard calculators or formulas, erring on the side of caution, which frequently results in customers overpaying. 4STAMP offers instant certified values or immediate direct access to professional tax advisors who can certify the precise amount of SDLT.
How Much Stamp Duty Land Tax is Payable?
Stamp Duty Land Tax (SDLT) is a tax paid when buying a residential property in England or Northern Ireland. It applies to freehold, leasehold, and shared ownership properties valued over £250,000. Different taxes apply in Scotland and Wales.
Before 2014, SDLT was calculated as a percentage of the entire property price. Since 2014, a new system was introduced where the tax is calculated on different portions of the property price based on price bands. This means that the amount of SDLT paid can vary depending on the property's value.
The following Stamp Duty Land Tax (SDLT) rates apply to residential property purchases in England and Northern Ireland and will remain in place until 31st March 2025. These rates are for those buying a property to replace their main home.
Properties valued up to £250,000: No Stamp Duty to pay.
Properties valued between £250,001 and £925,000: 5% tax on the portion of the price above £250,000.
Properties valued between £925,001 and £1.5 million: 10% tax on the portion of the price above £925,000.
Properties valued over £1.5 million: 12% tax on the portion of the price above £1.5 million.
Certified Advice with Rationale
For all transactions where a subjective assessment is required, or there are multiple options, our certified experts will update the case directly with the rationale for the tax calculation. For example, this could be for transactions that include multiple properties, or whether a property meets the specific criteria for uninhabitable relief.
This rationale is also included on the downloadable certificate that can be stored with other documents relating to the property transaction.
Should HMRC question the amount of SDLT paid for the transaction Mirador Advisory will respond on your clients behalf to HMRC. SDLT calculations generated by Check My SDLT are covered by Mirador Advisory Professional Indemnity Insurance.
4Corners Property & Mirador Advisory
4Corners Property is a Solihull based Property-Tech business founded in 2017, focused on streamlining and transforming the conveyancing process when buying and selling property. We have created solutions which shorten property purchase times by up to 48%, and reducing fall through rates to just 2.4%.
Mirador, established in 2023 in response to the need for expert high-quality property tax advice to be available to all property professionals. Mirador employs former Deloitte and KPMG property tax experts who have a combined 40 years of taxation expertise and over 20 years of SDLT experience. Mirador Advisory will act as your representative with HMRC for any certified calculation that is later queried by HMRC. The cost of that representation is included in the fees paid at the time of certification.
Our expertise is in-house so we do not hand off to third parties for transactions where the Stamp Duty calculation is complex or subjective. We provide a certified calculation which is covered by our professional indemnity insurance. We have Professional Indemnity insurance of £1,000,000 for any single claim.
