Stamp Duty Land Tax

Our highly regarded and friendly New Build team have extensive experience and knowledge when advising and dealing with Stamp Duty Land Tax on all property transactions.

When buying a residential property, it is likely you will have to pay Stamp Duty Land Tax. SDLT is a Government tax payable on land transactions over £250,000 (accurate on 23/09/22). It applies when you buy a freehold property, buy a new or existing leasehold property, buy a shared ownership property or are 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 PriceSDLT rate
up to £250,0000%
£250,001 to £925,0005%
£925,001 to £1,500,00010%
over £1,500,00012%

SDLT is calculated on each part of the purchase price which falls within the above band.

I Am a First-time Buyer, How Does SDLT Apply?

If the purchase price of your property is less than £425,000 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 £425,000 – £625,000 then SDLT is calculated on that part only at 5%. If the price is over £625,000 then normal rates of stamp duty apply to the full price, and no relief is given.

What Is the 3% Surcharge Introduced by the Government?

The 3% surcharge was introduced on 1st April 2016 and affects anyone who is buying an additional residential property for £40,000 or more. This could mean a holiday home, buy-to-let or even a main residence you plan to live in.

Stamp Duty Land Tax for New Build Homes

It is only when completion takes place that you will need to pay Stamp Duty Land Tax and the property will be registered in your name at the Land Registry.

Some developers may provide extra benefits such as paying for your SDLT.

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