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Stamp Duty & Land Tax – Current Rates

The current Stamp Duty Land Tax (SDLT) threshold is £125,000 for residential properties. These are the current rates payable:-

Property or lease premium or transfer value SDLT 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%

When a new residential leasehold property is bought, you pay SDLT on the purchase price of the lease (the ‘lease premium’) using the rates above.

If the total rent over the life of the lease (known as the ‘net present value’) is more than £125,000, you also pay SDLT of 1% on the portion over £125,000 – unless you buy an existing (‘assigned’) lease.

Shared ownership property
When a shared owner buys into a shared ownership property, they can choose to either:-

– Make a one-off payment based on the market value of the property (‘market value election’)
– Pay SDLT in stages. They would pay SDLT on the premium paid and then would pay additional SDLT payments upon stair-casing/final stair-casing.

Rates if you are buying your first home
You can claim a discount (relief) so you don’t pay any tax up to £300,000 and 5% on the portion from £300,001 to £500,000.
You’re eligible if:

– You, and anyone else you’re buying with, are first-time buyers
– You complete your purchase on or after 22 November 2017

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