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Stamp Duty Land Tax
Stamp Duty Land Tax (SDLT) is a tax levied by the government that you have to pay when you buy any property in the UK. This is charged on all purchases of houses, flats and other land and buildings.
SDLT replaced Stamp Duty in December 2003 and is technically a tax on the documents that transfer ownership of a property.
You do not have to pay any SDLT on residential property costing £125,000 or less (effective 23 March 2006). Above this amount you pay between one and four per cent of the purchase price:
Purchase Price
up to £125,000 : 0% SDLT
£125,001-£250,000 : 1% SDLT
£250,001-£500,000 : 3% SDLT
£500,001 and over : 4% SDLT
Certain areas of the country, known as 'disadvantaged areas', have special SDLT treatment. There are around 2,000 of these areas in the UK. You do not have to pay any SDLT if you buy a residential property in a disadvantaged area, where the purchase price you are paying is no more than £150,000.
Paying Stamp Duty Land Tax
As the buyer of the property, you are responsible for completing the land transaction return and paying the SDLT to HM Revenue & Customs (HMRC). In most cases your solicitor or licensed conveyancer will usually handle the documentation for you and send the tax to HMRC on your behalf.
Further information about payment of SDLT is available from the HM Revenue & Customs website. You should check that all the information on the form is correct and complete before signing the declaration.
Remember, buying a property involves serious legal obligations and if you have the slightest doubt about what you are doing then you should consider taking advice from a solicitor or other suitably qualified property professional. These notes are offered as a general guide only and do not constitute legal or financial advice.
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