SDLT is payable by the purchaser on the acquisition of UK property.
The SDLT rates for residential property are as follows:
Value of property | Rate of SDLT |
Upto £125,000 | 0% |
Next £125,000 | 2% |
Next £675,000 | 5% |
Next £575,000 | 10% |
Above £1.5m | 12% |
SDLT is payable at 15% on residential property acquired by non-natural persons (e.g. companies) with a value of more than £500,000 unless one of the exemptions applies. For example there are exemptions for property letting businesses and property developers.
There is also a 3% surcharge on the regular SDLT rates for purchasers buying a second residential property. There is an exemption for those temporarily owning two homes as a result of moving house.
The SDLT rates for freehold commercial or mixed used property are as follows (leasehold properties are subject to different rates):
Value of property | Rate of SDLT |
Up to £150,000 | 0% |
Between £150,001 and £250,000 | 2% |
Above £250,001 | 5% |
Contact us here for our tax services in relation to property transactions.