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.

It's important to note that some buyers may pay more or less SDLT under the new system compared to the old one.

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.

Stamp Duty Land Tax (SDLT) is a tax paid on the purchase of residential or commercial properties in England and Northern Ireland. This includes buyers such as individuals, companies, and overseas investors.

You must pay Stamp Duty Land Tax within 14 days of completing your property purchase. Failure to do so can result in penalties. Your solicitor will usually handle this for you.

You can choose to add Stamp Duty to your mortgage. Discuss this option with your mortgage provider.

First-time buyers can enjoy Stamp Duty relief on property purchases.

• No Stamp Duty is payable on properties costing up to £425,000.

• For properties priced between £425,001 and £625,000, you only pay 5% Stamp Duty on the amount over £425,000.

Since 2016, buyers purchasing additional properties in England and Wales have faced a 3% surcharge on top of standard Stamp Duty rates. This applies to buy-to-let investments and any property purchase that isn't your main home.

HMRC has a list of specific exemptions that mean you do not have to pay the usual stamp duty land tax after the purchase of a residential property.

These include:

• purchase of a freehold property for less than £40,000

• property is left to you in a will

• no money or other payment changes hands for a land or property transfer

• you buy a new or assigned lease of 7 years or more, as long as the amount you pay is less than the residential threshold or non-residential threshold of SDLT

Please Contact Us to discuss your specific scenario with our Tax Experts directly.