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Stamp Duty News
Stamp duty for first time buyers has been abolished for most purchasers.
Stamp duty for buy to let property has increased substantially from April 2016 following the introduction of a 3 percent surcharge.
Stamp duty for a second homes has also increased because of the 3 percent surcharge. Mobile homes, caravans and houseboats are exempt.
Stamp duty refunds are available for home movers replacing their main residence. The original home must be sold within 3 years.
Stamp duty calculations are different in England and Northern Ireland to LBTT calculations in Scotland and LTT calculations in Wales.
SDLT Rates in England and N.Ireland
Stamp duty rates on UK property transactions are linked to the property selling price.
Stamp duty rates
Rates of stamp duty (SDLT) increase in line with property value and there are a number of SDLT thresholds giving clear demarcation between the different rates. Stamp duty rates are different for residential and non residential property.
Residential SDLT rates
A dwelling is regarded as being "residential" if it complies with certain criteria. In most cases the definition of a residential dwelling applies to:
- Any building that is used or is suitable for use as a dwelling, or is in the process of being constructed or adapted for such use.
- Land that is or forms part of the garden or grounds of a dwelling (including any building or other structure on such land).
- An interest in or right over land that subsists for the benefit of a dwelling, eg a right of way for access.
What are the residential SDLT rates?
The freehold residential stamp duty rates in England and Northern Ireland are shown in the table below:
| Tax Band | Normal Rate | Additional Property |
|---|---|---|
| less than £250k | 0% | 5%* |
| £250k to £925k | 5% | 10% |
| £925k to £1.5m | 10% | 15% |
| rest over £1.5m | 12% | 17% |
| * An additional property purchased for less than £40k will attract 0% tax. For purchases from £40k to £250k the SDLT rate will be 5% on full purchase price. | ||
SDLT rates for buy to let and second homes
Under the current stamp duty system a 5% surcharge applies to all transactions involving the purchase of an additional property. Additional property types include buy to let investments and second homes. The surcharge applies to the full purchase price above an initial threshold of £40,000.
Replacing a main residence
A stamp duty exemption normally applies if someone is replacing their main residence. In such a case the higher stamp duty rates would not apply. For a definition of a main residence please refer to our stamp duty for second homes section.
