Stamp Duty Land Tax

UK property purchase tax is called Stamp Duty Land Tax (SDLT). SDLT is payable by the purchaser of property or land over a certain value in the UK. It is payable on the purchase of both commercial and residential property.

Non-residential property    

Non-residential property includes commercial property such as shops or offices amongst other things.

The current SDLT threshold for Non-residential properties is £150,000 and is charged on a sliding scale as follows:

Property value                    SDLT rate

Up to £150,000                          0%

The next £100,000                     2%

The remaining amount             5%

Residential property

The current SDLT threshold for residential properties is £125,000 and tax is charged on a sliding scale as follows:

Property value                    SDLT rate

Up to £125,000                          0%

The next £125,000                    2%

The next £675,000                    5%

The next £575,000                   10%

The remaining amount           12%

Following the Summer 2015 budget an additional 3% SDLT is charged on purchases of residential property acquired as second a home or on buy-to-let properties. This therefore increases the top rate of SDLT on these properties to 15%.

Additionally, where owners come under the charge to the Annual Tax on Enveloped Dwellings (ATED), SDLT is charged at a flat rate of 15% upon purchase. ATED is explained in more detail here.