Our highly regarded and friendly New Build team have extensive experience and knowledge when dealing with Stamp Duty Land Tax (“SDLT”) on property transactions.
When buying a residential property, it is likely you will have to pay SDLT.
SDLT is a Government tax payable on land transactions over £125,000. SDLT applies whether you are buying a freehold or leasehold property, a shared ownership property or when transferring land or property in exchange for payment.
What Are the Current Rates of SDLT?
There are several rate bands for Stamp Duty Land Tax which are as follows:
| Property Price | SDLT rate |
| up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| over £1,500,000 | 12% |
SDLT is calculated on each part of the purchase price which falls within the above band.
First Time Buyer Relief
If the purchase price of your property is less than £300,000 and you and anyone else buying with you has never owned or had an interest in a property, there will be no SDLT payable.
If the property price is between £300,000 – £500,000 then SDLT is calculated on that part only at 5%. If the price is over £500,000 then normal rates of stamp duty apply to the full price, and no relief is given.
Higher Rates of SDLT
Where you already own another property or are not replacing your main residence when purchasing the new property, you will usually need to pay the higher rate of SDLT, being 5% on top of the usual rates. Higher rates are also payable for non-UK residents or corporate entities. A detailed SDLT calculation will be provided based on the information you supply.
Stamp Duty Land Tax for New Build Homes
SDLT is paid on completion of the purchase, when the property becomes legally yours. Some developers may provide financial incentives, including a contribution towards the SDLT payable.
When purchasing a new build property, it should be considered that there may be additional SDLT payable for extras purchased from the developer. SDLT may be chargeable where extras, including upgrades to the specification, are attached to the building, i.e. a fixture and fittings, such as integrated appliances or tiling.
