Stamp Duty Land Tax, SDLT, (or Land and Buildings Transaction Tax in Scotland) is a lump-sum tax that anyone buying a property or land costing more than a set amount must pay. The rate you’ll pay the tax at is based on the price of the property.  It must be paid within 30 days of the completion of purchase and your conveyancer will normally handle this for you.  Stamp Duty has been waived for first time buyers up to a purchase price of £300,000.  If there are joint buyers, both have tt be first time buyers to qualify for the relief.

Other than for first time buyers, the rate of stamp duty is set out below.

Note that you pay the rate for the proportion of the property that’s at that rate.It’s quite complex, so here’s an example to better illustrate the changes:

Purchase price,                £400,000

You pay nothing below     £125,000

You pay 2% on between    £125,000 and £250,000, which is £2,500

You pay 5% on the value of the property above £250,000, ie £150,000, which is £7,500

In total you’ll pay £10,000 (£0+£2,500+£7,500).

Stamp duty on second homes or buy to let is an additional 3% on top of the rate for a first home.

Stamp duty table (other than fro first time buyers):-

Purchase Price Rate of Stamp Duty on first home Buy to Let/ Additional Home Rate*
£0-£125,000 0% 3%
£125,001 – £250,000 2% 5%
£250,001 – £925,000 5% 8%
£925,001 – £1.5 million 10% 13%
£1.5 million plus 12% 15%