Stamp Duty Land Tax (SDLT) was introduced on 1st December 2003 to replace stamp duty. Stamp duty was a charge on documents and was easily avoided by ensuring that there was no 'stampable' document. SDLT does not depend on documents. It is a tax on land transactions and aims to capture any transfer or creation of value in land for consideration.
Stamp Duty Land Tax (SDLT) was introduced on 1st December 2003 to replace stamp duty. Stamp duty was a charge on documents and was easily avoided by ensuring that there was no 'stampable' document. SDLT does not depend on documents. It is a tax on land transactions and aims to capture any transfer or creation of value in land for consideration.
Strict time limits for reporting land transactions and for paying the tax are reinforced by automatic penalties and interest charges. The Land Registry cannot register a notifiable transaction without confirmation that SDLT has been properly dealt with.
SDLT can be charged on any;
in or over land in the United Kingdom.
You will pay 0% for the first £125,000, 2% on the portion up to £250,000, 5% up to £925,000, 10% up to £1.5m and 12% on anything above that.
For example, if you purchase a home worth £420,000, you pay no SDLT on the first £125,000, £2,500 on the portion up to £250,000 and a further £8,500 on the remaining £170,000. Therefore, your total SDLT will be £11,000.
Your lawyer will normally pay stamp duty for you on completion of the sale.
You can avoid SDLT if:
Yes, you will pay an extra 3% on each tier.
First-time buyers have to pay the same stamp duty rates as everybody else.
No, stamp duty is not payable on things like domestic appliances (washing machines, dishwashers), carpets, curtains and furniture. If these items are included in the price you pay for the house, they can be deducted so they are not included in the figure used to calculate SDLT.
If you have any questions about SDLT, please contact an experienced property law solicitor.