Stamp Duty or Stamp Duty Land Tax (SDLT) as it is properly known is a tax charged on land and property transactions in England, payable by the buyer (other taxes are in place for the rest of the UK).
SDLT is a progressive tax on the purchase price of a property and is charged at different rates depending on the portion of the purchase price that falls within each rate band. The tax that is charged depends on both the purchase price and the nature of the buyers.
Due to the Covid-19 pandemic the SDLT threshold increased with reduced rates being in place until the 30 September 2021. These rates are now coming to an end with SDLT returning to its pre Covid-19 rates on the 1st October 2021.
From the 1st October the SDLT rates will be as follows:
- Purchase Price: £0 – £125,000 > 0%
- Purchase Price: £125,001 – £250,000 > 2%
- Purchase Price: £250,001 – £925,000 > 5%
- Purchase Price: £925,001 – £1.5m > 10%
- Purchase Price: £1.5m+ > 12%
Different rates apply to purchasers of residential property if you are a first-time buyer, already own a property and are buying an additional property or you’re not a UK resident.
Laura Finnigan leads the Thompson Smith and Puxon Residential Property team. The team can help with all of your property matters and can be contacted on 01206 574431 or by email at movinghome@tsplegal.com
