Stamp Duty Land Tax (SDLT) is a tax on properties purchased in England and Northern Ireland. The rate of stamp duty is based on the location of the property and the price of the property. As of September 23, 2022, no stamp duty is charged on properties under £250,000. The amount of stamp duty you pay will depend on the value of your property, and the percentage of purchase price. It is important to consider SDLT when thinking about buying a house, as it could be a significant cost. First-time buyers are only charged SDLT on homes over £425,000, and they have relief available on properties up to £625,000. If a new residential property is purchased and it means you will own more than one, you will usually have to pay 3% on top of the standard SDLT rates. The stamp duty rates are as follow:
Purchase price under £250,000: No stamp duty charged
Purchase price between £250,001 and £925,000: No stamp duty on the first £250,000 and 5% on the portion between £250,001 and £925,000
Purchase price between £925,001 and £1.5m: No stamp duty on the first £250,000, 5% on the portion between £250,001 and £925,000 and 10% on the portion between £925,001 and £1.5 million.
Purchase price over £1.5m: No stamp duty on the first £250,000, 5% on the portion between £250,001 and £925,000, 10% on the portion between £925,001 and £1.5 million, and 12% on the portion over £1.5 million.