Stamp Duty Land Tax SDLT explained!
Stamp Duty Land Tax (SDLT) is a tax that is charged on the purchase of property in the United Kingdom. The tax is calculated based on the value of the property being purchased, and is payable by the buyer.
Here's a breakdown of how the UK stamp duty works:
SDLT is charged on properties in England, Wales, and Northern Ireland. Scotland has its own version of the tax, called Land and Buildings Transaction Tax (LBTT).
The amount of SDLT payable is based on the purchase price of the property, and is calculated as a percentage of the total value. The percentage charged depends on the price of the property.
If you're buying your first home, you may be eligible for a reduced rate of SDLT. This is known as the First Time Buyer Relief, which allows you to claim relief on the first £300,000 of the purchase price, provided that the property does not exceed £500,000.
If you're buying an additional property, such as a second home or buy-to-let property, you may be required to pay an additional 3% surcharge on top of the standard SDLT rates.
The current 2023 rates of SDLT are:
Up to £125,000 - 0%
£125,001 to £250,000 - 2%
£250,001 to £925,000 - 5%
£925,001 to £1.5 million - 10%
Above £1.5 million - 12%
If you're unsure of how much SDLT you'll need to pay, there are a number of online calculators available that can help you work out the amount due.
You will typically have 30 days from the date of completion to pay the SDLT due, or you may face penalties and interest charges.
It's important to remember that SDLT is just one of the costs associated with buying a property, and you should also consider other fees, such as legal and survey fees, when budgeting for your purchase.