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Stamp Duty Land TAX (SDLT)

Stamp Duty is a tax you pay the government when you do one of the following:

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  • Buy a freehold property

  • Buy a new or existing leasehold

  • Buy a property through a shared ownership scheme

  • Are transferred land or property in exchange for payment, e.g. you take on a mortgage or buy a share in a house

 

We will file your SDLT return and pay the tax on your behalf on the day of completion.  We will also claim any relief that you are eligible for, such as if you’re a first-time buyer.

FIRST TIME BUYER'S RELIEF

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Note: If the price is over £500,000, you will not qualify for the first time buyer's relief.

You are eligible for the first time buyer’s relief if:

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  • You, and anyone else you are buying with, are first-time buyers

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  • The property will become your only or main residence

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  • You complete your purchase on or after 22 November 2017

RATES IF YOU HAVE OWNED A HOME BEFORE

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HIGHER RATES FOR ADDITIONAL PROPERTIES

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You will usually have to pay 3% on top of the normal SDLT rates if buying a new residential property means that you will own more than one.

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You won’t pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.

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If there is a delay selling your main residence and it hasn’t been sold on the day you complete your new purchase:

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  • you will have to pay higher rates because you own 2 properties

  • you may be able to get a refund if you sell your previous main home within 36 months

IS YOUR PURCHASE SUBJECT TO THE HIGHER RATES?

ONE

How many properties will you own at the end of the day? (The day of completion)

TWO

The transaction is not subject to the higher rates, regardless of what the property is used for.

Is the property being purchased replacing your main residence?

NO

The transaction is subject to the higher rates.

NO

YES

Is your main residence being sold simultaneously?

YES

The transaction is subject to the higher rates but a refund may be available if the previous main residence is sold within 36 months.

The transaction is not subject to the higher rates.

The rules relating to SDLT are detailed and complex and this information sheet is not designed to be a definitive guide. A guidance note has been issued by HM Revenue and Customs which you can view at https://www.gov.uk/stamp-duty-land-tax

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