The Stamp Duty Land Tax rate is charged on increasing portions of the property price.
1. Stamp Duty Land Tax rates and thresholds for residential properties
| Purchase price, lease premium or transfer value | Stamp Duty Land Tax rate |
|---|---|
| Up to £125,000 | Zero |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
1.1 Higher rate for corporate bodies
From 20 March 2014, Stamp Duty Land Tax is charged at 15% on interests in residential dwellings costing more than £500,000 purchased by certain non-natural persons.
1.2 Higher rate for additional dwellings
An additional 3% will apply on top of Stamp Duty Land Tax residential rates if buying a new residential property means you’ll own more than one.
The higher rate for additional dwellings applies for purchases which complete on and after 1 April 2016.
Where contracts have been exchanged on or before 25 November 2015 but not completed until on or after 1 April 2016, the higher rates will not apply.
1.3 Rates for first time buyers
From 1 July 2021 to 22 September 2022 the special rules and rates for first time buyers apply.
| Purchase price, lease premium or transfer value | Stamp Duty Land Tax rate |
|---|---|
| Up to £300,000 | Zero |
| The next £200,000 (the portion from £300,001 to £500,000) | 5% |
1.4 Non-resident Surcharge
From 1 April 2021, different rates of Stamp Duty Land Tax will apply to purchasers of residential property in England and Northern Ireland who are not resident in the UK.
The rates are 2 percentage points higher than those that apply to purchases made by UK residents. This surcharge applies to purchases of both freehold and leasehold property, as well as increasing the Stamp Duty Land Tax payable on rents on the grant of a new lease.
The surcharge also applies to certain UK resident companies that are controlled by non-UK residents.
2. Residential leaseholds
If you buy a new residential leasehold, Stamp Duty Land Tax is payable on both the:
- purchase price (lease premium) — use the Stamp Duty Land Tax residential rates
- ‘net present value’ of the rent payable
The ‘net present value’ is based on the value of the total rent over the life of the lease.
| Net present value of rent (residential) | Stamp Duty Land Tax rate |
|---|---|
| Up to £125,000 | Zero |
| The remaining amount (the portion over £125,000) | 1% |
3. Non-residential and mixed use properties
Non-residential property includes:
- commercial property such as shops or offices
- property that is not suitable to be lived in
- forests
- agricultural land that’s part of a working farm or used for agricultural reasons
- any other land or property that is not part of a dwelling’s garden or grounds
- 6 or more residential properties bought in a single transaction
A mixed use property is one that incorporates both residential and non-residential elements.
4. Stamp Duty Land Tax rates and thresholds for sales and transfers on new non-residential or mixed use land or property
The rates in the following table apply to freehold and leasehold non-residential and mixed use purchases and transfers.
The Stamp Duty Land Tax rate is charged on increasing portions of the property price.
| Purchase price, lease premium or transfer value | Stamp Duty Land Tax rate |
|---|---|
| Up to £150,000 | Zero |
| The next £100,000 (the portion from £150,001 to £250,000) | 2% |
| The remaining amount (the portion above £250,000) | 5% |
5. Stamp Duty Land Tax rates and thresholds for rent on new non-residential or mixed use land or property
If you buy a new non-residential or mixed use leasehold property, Stamp Duty Land Tax is payable on both the:
- lease premium or purchase price
- ‘net present value’ of the rent payable (this is based on the value of the total rent over the life of the lease)
These are calculated separately and then added together.
| Net present value of rent | Stamp Duty Land Tax rate |
|---|---|
| Up to £150,000 | Zero |
| Over £150,000 | 1% |
