Stamp Duty/ Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) on land and buildings (On full consideration paid)

2016-17
Rate Residential Property** Rate Non-residential
  £   £
Nil 0 - 125,000 Nil 0 - 150,000
2% 125,001 - 250,000 2% 150,001 - 250,000
5% 250,001 - 925,000* 5% 250,001 - or more
10% 925,001 - 1,500,000*   N/A
12% 1,500,001 and above*   N/A

From 4th December 2014,SDLT rates on residential property will apply at marginal rates rather than the previous "slab" system.  for example, a residential property costing £400,000 would result in SDLT of ((£125,000 x 0%)+(£125,000 x 2%)+(£150,000 x 5%)) £10,000.  For non-residential property, the slab system was abolished on 17th March 2016.

 

* From 20 March 2014, SDLT is charged at 15 per cent on interests in residential dwellings costing more than £500,000 purchased by certain non-natural persons (previously the limit was £2 million). This broadly includes bodies corporate, for example limited companies, collective investment schemes and all partnerships with one or more members who are either a body corporate or a collective investment scheme. There are exclusions for companies acting in their capacity as trustees for a settlement and property developers who meet certain conditions as well as properties let at arms length rates.  Exemption must be claimed where qualifying criteria are met. 

The Annual Tax on Enveloped Dwellings also applies to these properties, at tiered rates from £2m (April 2013), £1m (April 2015) and £500,000 (April 2016).

** From 1st April 2016 an additional 3% SDLT charge will be made on the purchase of additional residential properties in England, Wales and Northern Ireland where consideration is greater than £40,000.

Leases are charged at 1% where the net present value of rents exceeds £125,000 (residential) or £150,000 (non-residential), or 2% for mixed use or non-residential leases where the net present value of rents exceeds £5m.

Shares and securities - 0.5% rounded up to next multiple of £5 (i.e. £5 per £1000 of consideration or part thereof).  No charge for consideration under £1,000.

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