You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England, Wales and Northern Ireland.
The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.
SDLT no longer applies in Scotland. Instead you pay Land and Buildings Transaction Tax when you buy a property.
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, eg you take on a mortgage or buy a share in a house
How much you pay depends on whether the land or property is:
- non-residential or mixed-use
You can use HM Revenue and Customs’ (HMRC) Stamp Duty Land Tax calculator to work out how much tax you’ll pay.
You may be able to reduce the amount of tax you pay by claiming relief, eg if you buy more than one property (‘multiple dwellings’).
The value you pay SDLT on (the ‘consideration’)
The total value you pay SDLT on (sometimes called the ‘consideration’) is usually the price you pay for the property or land.
Sometimes it might include another type of payment like:
- 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
You must send an SDLT return to HMRC and pay the tax within 30 days of completion.
If you have a solicitor, agent or conveyancer, they’ll usually file your return and pay the tax on your behalf on the day of completion and add the amount to their fees.
If they don’t do this for you, you can file a return and pay the tax yourself.
There are certain situations where you don’t need to send a return.
You may be charged penalties and interest if you don’t file your return and make your payment within 30 days of completion.