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What is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax is a tax on real estate investments in England and Northern Ireland. This is a progressive tax, which includes different rates depending on the purchase price of a property (the tax is higher for more expensive properties).

A stamp duty holiday has now been implemented and will be applied to all residential purchases until 31st March 2021.

Transactions involving additional property, including second homes and buy to let investments, will continue to attract a 3% surcharge.

Enter property purchase price

Total Stamp Duty:

£0

Effective Rate: 0%

Tax Band%Taxable SumTax
less than £500k 0% £0 £0
£500k to £925k 5% £0 £0
£925k to £1.5m 10% £0 £0
rest over £1.5m 12% £0 £0

Enter property purchase price

Total Stamp Duty:

£0

Effective Rate: 0%

Tax Band%Taxable SumTax
less than £500k 3% £0 £0
£500k to £925k 8% £0 £0
£925k to £1.5m 13% £0 £0
rest over £1.5m 15% £0 £0

What are the new stap duty rates?

Tax Band Normal Rate Additional property
less than £500k 0% 3%*
£500k to £925k 5% 8%
£925k to £1.5m 10% 13%
rest over £1.5m 12% 15%

An additional property priced under £40k will include 0% tax. The Stamp Duty rates (SDLT) in the above table apply to freehold residential purchases in England and Northern Ireland.

Your Questions Answered

Stamp Duty Land Tax is a tax on the acquisition of land in England and Northern Ireland. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax, instead of SDLT.

SDLT is charged on land transactions in England and Northern Ireland according to the price paid or in some cases the market value. A land transaction is any acquisition of a chargeable interest. This includes not only freeholds and leases, but also interests, rights and powers over land other than exempt interests such as mortgages and licenses to use land.

You can request a refund for the amount above the normal Stamp Duty rates if: you sell your previous main residence within three years, and. you claim the refund within three months of the sale of your previous main residence, or within 12 months of the filing date of your SDLT tax return, whichever comes later.

In most cases, the solicitor or conveyancer will submit the form for you, although the responsibility lies with you to check this is done in time – usually 30 days after the completion of the property transaction.

No. As stamp duty is a tax in itself, you will not be required to pay VAT or any other further tax on it.