Stamp duty rates

Taxes are usually the biggest amount payable when buying a property in the UK normally with a mortgage loan and are also payable on stock and share transfers. There are many myths surrounding these duties so this site has the latest information.

Stamp duty rates are set by the government (see table of rates) and are mostly unavoidable and this website shows you all the costs.

These rates are fixed and are payable upon completion of a purchase of a property and the applicable stamp duty rates will be deducted by your solicitor on your final account for conveyancing services. So what rates will you pay ?

There are several types of rates that are in the table but the main one people are interested in is the stamp duty land tax which is on residential property.

  • Stamp duty land tax (SDLT) for residential property
  • SDLT for disadvataged areas
  • SDLT on new residential leasehold purchases
  • SDLT on non-residential or mixed use properties
  • Stamp duty on the sale of shares

Stamp Duty Land Tax for Residential Properties

This is the tax that most people will pay when they buy another property. It is generally the purchaser who pays this tax via their solicitor although some sellers will pay this tax for you as part of a sale agreement. The percentage you pay depends on the sale price of your property and is currently only payable on a sale value above £125,000 - the # current rates are as follows:

  • Up to £125,000 - 0%
  • Over £125,000 to £250,000 - 1%
  • Over £250,000 to £500,000 - 3%
  • Over £500,000 - 4%

From 25th March 2010 - First time buyers threshold increased to £250,000 (ie:0% stamp duty paid for homes valued up to £250,000 for first time buyers only). This will last until 31st December 2011.

From April 2010 - 5% rate for homes valued over £1,000,000

Be aware that the stamp duty rate shown is payable on all the amount and is not split according to the percentages. So if you have a sale price of £260,000 then your payment rate is 3% of all of the £260,000. Full breakdown : full budget 2010 stamp duty rates and when they take effect.

SDLT for Disadvantaged Areas

The rates for disadvataged areas of the UK are exactly the same as the above except the 1% rate starts at £150,000 rather than the standard £125,000