Thursday, 21 January 2010Stamp Duty Land Tax rates and thresholds
Stamp Duty Land Tax (SDLT) is charged on land and property transactions in the UK. The tax is charged at different rates and has different thresholds for different types of property and different values of transaction.
The tax rate and payment threshold can vary according to whether the property is in residential or non-residential use, and whether it is a freehold or leasehold. SDLT relief is available for certain kinds of property or transaction.
SDLT rates for residential property
The table below applies for all freehold residential purchases and transfers and the premium paid for a new lease or the assignment of an existing lease. (If the property will be used for both residential and non-residential purposes the rates differ - please see the section 'SDLT for non-residential or mixed use property'.)
Residential land or property SDLT rates and thresholds
Purchase price/lease premium or transfer value SDLT rate
Up to £125,000 Zero
Over £125,000 to £250,000 1%
Over £250,000 to £500,000 3%
Over £500,000 4%
If the value is above the payment threshold, SDLT is charged at the appropriate rate on the whole of the amount paid. For example, a house bought for £130,000 is charged at 1 per cent, so £1,300 must be paid in SDLT. A house bought for £350,000 is charged at 3 per cent, so SDLT of £10,500 is payable.
SDLT threshold 3 Sept 2008 - 31 December 2009
Note that between 3 September 2008 and 31 December 2009 the starting threshold for SDLT was £175,000 - higher than shown in the table above. The threshold was reduced back to £125,000 from 1 January 2010.
For more information on Stamp Duty Land Tax visit;http://www.hmrc.gov.uk/sdlt/rates-thresholds.htm |