Stamp duty land tax for residential property

You must pay stamp duty land tax for residential property in the United Kingdom. Below is the current stamp duty land tax applicable for buying a UK residential property.

If you buy a FREEHOLD property using a person’s name, Let say, your property purchase price is £2,500,000.

Stamp duty land tax for first property

Purchase price bands %SDLT Due
Up to £125,000 00
Above £125,000 and up to £250,000 2£2,500
Above £250,000 and up to £925,000 5£33,750
Above £925,000 and up to £1,500,000 10£57,500
Above £1,500,000 + 12£120,000
Total SDLT due £213,750

Stamp duty land tax for second property

Purchase price bands%SDLT due
Up to £125,0003£3,750
Above £125,000 and up to £250,0005£6,250
Above £250,000 and up to £925,0008£54,000
Above £925,000 and up to £1,500,00013£74,750
Above £1,500,000 +15£150,000
Total SDLT due£288,750

For LEASEHOLD property, the SDLT rates on your lease premium is the same as above. You also have to pay SDLT on your rent according to your lease, up to £125,000 is zero and above £125,000 is at 1%.

Use the GOV.UK Stamp Duty Land Tax Calculator to work out how much stamp duty you have to pay for your property.

There are different SDLT rules if you are buying your property using a limited company. Property purchased using a limited company may subject to Annual Tax on enveloped dwellings tax.

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