Stamp Duty Land Tax SDLT rates 2019
Stamp Duty Land Tax (SDLT) rates 2019
Stamp Duty Land Tax (SDLT) is a tax the purchaser pays on the purchase price of land and buildings. When you buy a property or take on a lease you may have to pay this property tax to HMRC. The legislation surrounding SDLT is complex, there are exemptions and allowances. At Conveyancing Marketing Services Ltd. we have qualified property lawyers available to discuss your SDLT or LTT queries without obligation. Give us a quick call on 01638 576478 or email: Sharon@cms-uk.co.uk.
SDLT is calculated on the value of the property and there are separate calculations depending on whether you are:-
1. A first time buyer
2. Replacing your main residence
3. Buying a second or subsequent property
4. Buying a property in Wales – Land Transaction Tax
5. Whether the property is residential property such as a house or a flat or a Commercial property.
Residential properties
Freehold purchases and transfers
These rates are for purchasers who have owned a property before or who are moving house, selling their existing property to buy a new residence.
| Property or lease premium or transfer value | SDLT rate |
|---|---|
| Up to £125,000 | 0% |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
First time Buyers SDLT relief
You can claim a discount (relief) so you do not pay any tax up to £300,000 and 5% on the portion from £300,001 to £500,000.
You’re eligible if:
- you and any co-purchaser must both be first time buyers.
- you and any co-purchaser have never owned a property or a share in a property in the UK or anywhere else in the world.
If the price is over £500,000, you follow the rules for people who’ve bought a home before.
| Property or lease premium or transfer value | SDLT rate |
|---|---|
| Up to £300,000 | 0% |
| 300,001 – £500,000 | 5% |
| The next £425,000 (the portion from £500,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
Second Property or multiple property owners
SDLT on a second or subsequent property starts at £40,000 and is 3% higher than the rate for buying or replacing a main residence.
|
SDLT rate |
|---|
| Up to £40,000 | 0% |
| The next £85,000 (the portion from £40,001 to £125,000) | 3% |
| The next £125,000 (the portion from £125,001 to £250,000) | 5% |
| The next £575,000 (the portion from 250,001 to £925,000) | 8% |
| over £925,000 and up to £1.5 millionOver £1.5 million | 13%15% |
Welsh Land Transaction Tax – LTT
| Property or lease premium or transfer value | SDLT rate |
|---|
| Up to £180,000 | 0% |
| £180,001 to £250,000 | 3.5% |
| The next £150,000 (the portion from £250,001 to £400,000) | 5% |
| The next £350,000 (the portion from £400,001 to 750,000) | 7.5% |
| The next £750,000 (the portion from 750,001 to 1.5 million)The remaining amount (the portion above £1.5 million) | 10%12% |