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You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland.听

The tax is different if the property or land is in:

• Scotland - pay 听听

• Wales - pay if the sale was completed on or after 1 April 2018听听

You pay the tax when you:

• buy a freehold property

• buy a new or existing leasehold

• buy a property through a shared ownership scheme

• are transferred land or property in exchange for payment, for example you take on a mortgage or buy a share in a house

Thresholds

The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there鈥檚 no SDLT to pay.

SDLT starts to apply when you buy property that costs:

• 拢125,000 for residential properties

• 拢300,000 for first-time buyers buying a residential property worth 拢500,000 or less

• 拢150,000 for non-residential land and properties

How much you pay

How much you pay depends on:听听

• whether the land or property will be used as a residential property or as a non-residential or mixed-use property

• whether you are eligible for relief or an exemption听听

For example, if you鈥檙e buying a residential property there are different rates of SDLT if:

• you鈥檙e a first-time buyer

• you already own a property and you鈥檙e buying an additional property

• you鈥檙e not a UK resident

You can use HM Revenue and Customs鈥� (HMRC) to work out how much tax you鈥檒l pay.

The value you pay SDLT on (the 鈥榗onsideration鈥�)

The total value you pay SDLT on (sometimes called the 鈥榗onsideration鈥�) is usually the price you pay for the property or land.

Sometimes it might include another type of payment like:

• goods

• works or services

• release from a debt

• transfer of a debt, including the value of any outstanding mortgage

Find out how to work out the consideration if your situation is complicated.

How and when to pay

Send an SDLT return to HMRC and pay the tax within 14 days of completion.

If you have a solicitor, agent or conveyancer, they鈥檒l usually file your return and pay the tax on your behalf on the day of completion. They鈥檒l then add the tax to their fees.

If they do not do this for you, you can file a return and pay the tax yourself.

You usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price when you buy residential property, for example a house or flat.听

The amount you pay depends on:听

• when you bought the property
• how much you paid for it
• whether you鈥檙e eligible for relief or an exemption

Use the to work out how much tax you鈥檒l pay.听

Rates for a single property

You pay SDLT at these rates if, after buying the property, it is the only residential property you own. You usually pay 5% on top of these rates if you own another residential property.

Property or lease premium or transfer value	SDLT rate
Up to 拢125,000	Zero
The next 拢125,000 (the portion from 拢125,001 to 拢250,000)	2%
The next 拢675,000 (the portion from 拢250,001 to 拢925,000)	5%
The next 拢575,000 (the portion from 拢925,001 to 拢1.5 million)	10%
The remaining amount (the portion above 拢1.5 million)	12%

Use the to work out how much tax you鈥檒l pay.

New leasehold sales and transfers

When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the 鈥榣ease premium鈥�) using the rates above.

If the total rent over the life of the lease (known as the 鈥榥et present value鈥�) is more than the SDLT threshold (currently 拢125,000), you鈥檒l pay SDLT at 1% on the portion over 拢125,000.

This does not apply to existing (鈥榓ssigned鈥�) leases.

You can work out how much SDLT you鈥檒l pay for your residential lease using HMRC鈥檚:

• guidance on leasehold purchases

If you鈥檙e buying your first home

You can claim a discount (relief) if the property you buy is your first home. You鈥檙e eligible if you and anyone else you鈥檙e buying with are first-time buyers.

You鈥檒l pay:

• no SDLT up to 拢300,000
• 5% SDLT on the portion from 拢300,001 to 拢500,000

If the price is over 拢500,000, you cannot claim the relief. Follow the rules for people who鈥檝e bought a home before.

Higher rates for additional properties

You鈥檒l usually have to pay 5% on top of SDLT rates if buying a new residential property means you鈥檒l own more than one.

Use the or check the higher rates to work out how much tax you鈥檒l pay.

If you鈥檙e replacing your main residence

You will not pay the extra 5% SDLT if both of the following apply:

• the property you鈥檙e buying is replacing your main residence
• your previous main residence was sold within 36 months of completing your new purchase

If you have not sold your main residence on the day you complete your new purchase, you鈥檒l have to pay higher rates. This is because you own 2 properties.

Check if you鈥檙e eligible for a refund of the higher rates of SDLT.

Rates if you鈥檙e not a UK resident

If you鈥檙e not present in the UK for at least 183 days (6 months) during the 12 months before your purchase you are 鈥榥ot a UK resident鈥� for the purposes of SDLT.

You鈥檒l usually pay a 2% surcharge if you鈥檙e buying a residential property in England or Northern Ireland.

You may not have to pay a surcharge on certain properties, transactions or if you鈥檙e a particular type of buyer.

Check if you鈥檙e eligible for a refund of the surcharge.

If you have to pay the surcharge, you鈥檒l also have to pay any other rates of SDLT that apply, for example:听

• if you already own a property and you鈥檙e buying an additional property
• if you鈥檙e a first-time buyer听

Use the to work out how much tax you鈥檒l pay.听

Special rates

There are different SDLT rules and rate calculations for:

• corporate bodies
• people buying 6 or more residential properties in one transaction
• shared ownership properties
• multiple purchases or transfers between the same buyer and seller (鈥榣inked purchases鈥�)
• companies and trusts buying residential property

You pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price (or 鈥榗onsideration鈥�) when you pay 拢150,000 or more for non-residential or mixed (also known as 鈥榤ixed use鈥�) land or property.听

Non-residential property includes:

• commercial property, for example shops or offices
• property that is not suitable to be lived in and cannot be made suitable (for example, there is a high risk of structural collapse or the property is radioactive)
• forests
• agricultural land that鈥檚 part of a working farm or used for agricultural reasons
• any other land or property that is not part of a dwelling鈥檚 garden or grounds
• 6 or more residential properties bought in a single transaction

A 鈥榤ixed鈥� property is one that has both residential and non-residential elements, for example a flat connected to a shop, doctor鈥檚 surgery or office.

Use the to work out how much tax you鈥檒l pay.

Freehold sales and transfers

You can also use this table to work out the SDLT rate for a lease premium.听

Property or lease premium or transfer value	SDLT rate
Up to 拢150,000	Zero
The next 拢100,000 (the portion from 拢150,001 to 拢250,000)	2%
The remaining amount (the portion above 拢250,000)	5%

Example

New leasehold sales and transfers

When you buy a new non-residential or mixed leasehold you pay SDLT on both the:听

• purchase price of the lease (the 鈥榣ease premium鈥�) using the rates above
• value of the annual rent you pay (the 鈥榥et present value鈥�)听听

These are calculated separately then added together.

The net present value (NPV) is based on the total rent over the life of the lease. You do not pay SDLT on the rent if the NPV is less than 拢150,000.听

Net present value of rent	SDLT rate
拢0 to 拢150,000	Zero
The portion from 拢150,001 to 拢5,000,000	1%
The portion above 拢5,000,000	2%

How much you鈥檒l pay

You can work out how much SDLT you鈥檒l pay for your non-residential lease using HM Revenue and Customs鈥� (HMRC):

• guidance on buying leasehold properties听

You may have to pay Stamp Duty Land Tax (SDLT) if the ownership of land or property is transferred to you in exchange for any payment (or 鈥榗onsideration鈥�).

The rules around SDLT depend on the specific circumstances surrounding the transfer.

HM Revenue and Customs (HMRC) has guidance on transfers:

• as a result of marriage, civil partnerships or moving in together
• on divorce, separation or the end of a civil partnership
• of jointly owned property or land
• if the larger share is given as a gift
• given as a gift or left in a will
• to or from a company

You may have to pay Stamp Duty Land Tax (SDLT) when you buy a property through a shared ownership scheme run by an approved public body.

This includes:

• local housing authorities
• housing associations
• housing action trusts
• the Northern Ireland Housing Executive
• the Commission for the New Towns
• development corporations

You can choose to either:

• make a one-off payment based on the market value of the property (鈥榤arket value election鈥�)
• pay SDLT in stages

Market value election

Submit a return and pay SDLT at the residential rate. Use the total market value of the property to calculate how much to pay - even if you鈥檙e only buying a share.

You do not pay any more SDLT after this, even if you buy a bigger share in the property later on.听

HM Revenue and Customs (HMRC) has guidance on how much SDLT you鈥檒l pay if you do not have the right to the freehold.

Paying in stages

You make your first SDLT payment on the price you pay for the lease (the 鈥榣ease premium鈥�) if it鈥檚 above the SDLT threshold for residential rates. If the lease premium is below the threshold, you do not pay SDLT at this point - but you still have to submit a return.听

You may have to pay extra SDLT if the total rent over the life of the lease (known as the 鈥榥et present value鈥�) is more than the SDLT threshold.听

Work this out on . You pay SDLT of 1% on the amount over the threshold - add this to any SDLT you鈥檙e paying on the lease premium.听

SDLT if you buy more shares

If you buy any more shares in the property, you do not have to pay any more SDLT or send a return to HMRC until you own more than an 80% share.听听

Once your share of the property goes over 80% you must send a return and pay SDLT on:

• the transaction that took you over 80%

• any transactions after that听

Calculating your SDLT

To work out the SDLT if you buy more shares that take you over 80%:

1. Work out the SDLT due on the total you鈥檝e paid for the property to date - include any amounts you did not pay tax on. Use the residential rate that applies at the time you bought the new share. For example, if you鈥檝e paid 拢260,000 in total so far, the total SDLT due is 拢3,000 (0% on the first 拢125,000, 2% on the second 拢125,000 and 5% on the final 拢10,000).

2. Divide the amount you鈥檙e paying for this share by the total amount you鈥檝e paid for the property to date. For example, if you鈥檙e paying 拢65,000 for this share, divide 拢65,000 by 拢260,000 = 0.25.

3. Multiply the two figures, for example SDLT of 拢3000 multiplied by 0.25 = 拢750. This is the amount you would need to pay in SDLT for this share.

Additional tax if payments are linked

You may have to pay extra SDLT on previous shares if they become 鈥榣inked鈥� to later shares. Shares only become linked once you own over 80% of the property.听

You may be eligible for Stamp Duty Land Tax (SDLT) reliefs if you鈥檙e buying your first home and in certain other situations. These reliefs can reduce the amount of tax you pay.听

HM Revenue and Customs (HMRC) has guidance on SDLT reliefs for:

• first-time buyers
• building companies buying an individual鈥檚 home
• employers buying an employee鈥檚 house
• local councils making compulsory purchases
• property developers providing amenities to communities
• companies transferring property to another company
• charities buying for charitable purposes
• right to buy properties
• registered providers of social housing
• Crown employees
• property investment funds, for example Property Authorised Investment Funds (PAIFs) and Co-ownership Authorised Contractual Schemes (CoACSs)

You can also read guidance on freeport tax sites.

Exemptions

You do not have to pay SDLT or file a return if:

• no money or other payment changes hands for a land or property transfer
• property is left to you in a will
• property is transferred because of divorce or dissolution of a civil partnership
• you buy a freehold property for less than 拢40,000
• you buy a new or assigned lease of 7 years or more, as long as the premium is less than 拢40,000 and the annual rent is less than 拢1,000
• you buy a new or assigned lease of less than 7 years, as long as the amount you pay is less than the residential threshold or non-residential threshold of SDLT听
• you use alternative property financial arrangements, for example to comply with Sharia law, where the alternative financial provider pays SDLT when they buy the property under the arrangements

Read HMRC鈥檚 guidance on transactions that do not need a return.听

You may be able to get a refund of Stamp Duty Land Tax (SDLT) if, for example:

• you paid the higher rates of SDLT on the purchase of a new main home but you鈥檝e sold your previous main home
• you were not resident in the UK and paid a surcharge to purchase residential property in England or Northern Ireland but are now 鈥榓 UK resident鈥� for the purposes of SDLT
• you鈥檙e eligible for a relief or exemption which you did not claim in your original SDLT return
• you paid the residential property rates of SDLT but you should have paid the non-residential rates
• you made a mistake in calculating the amount of SDLT due on your original SDLT return, meaning you have overpaid
• you calculated the correct amount of SDLT on your return, but have paid too much to HM Revenue and Customs (HMRC) in error

How to claim a refund

You must include all purchasers on the claim if there鈥檚 more than one.

How you claim depends on your circumstances.

Use this tool to check how to claim a refund.

How you will get your refund

HMRC will usually make the payment directly into your bank account within 15 working days of receiving your claim.听

HMRC may contact you by post if they need further information.听

After paying a refund, HMRC may find that your claim is wrong. If that happens, you must repay the refund in full along with any interest due.听

You may also be charged a penalty.