Stamp Duty is the tax you pay when you buy property or shares. You pay 'Stamp Duty Land Tax' (SDLT) when you buy property like houses, flats, other buildings and land.
If the purchase price is £125,000 or less you don't pay any SDLT at all. If it's more than £125,000, you pay between one and four per cent of the whole purchase price.
Residential property – purchase price |
Rate of Stamp Duty Land Tax |
Up to £125,000 |
0% |
£125,001 - £250,000 |
1% |
£250,000 - £500,000 |
3% |
£500,001 or more |
4% |
Example (1):
Purchase Price is £240,000 the SDLT rate will be 1% and tax payable will be £2,400
Example (2):
Purchase Price is £260,000 the SDLT rate will be 3% and tax payable will be £7,800
If you're buying a property an area designated by the government as 'disadvantaged', you don't pay any Stamp Duty Land Tax if the purchase price is £150,000 or less.