What is Stamp Duty Land Tax?
If you buy a property in the UK over a certain purchase price you have to pay Stamp Duty Land Tax (previously known as Stamp Duty). This is charged on all purchases of houses, flats and other land and buildings. Stamp Duty Land Tax replaced Stamp Duty in December 2003 and is a tax on the documents that transfer ownership of a property. When you buy a property you may have to pay Stamp Duty Land Tax. You don’t have to pay any Stamp Duty Land Tax on residential property costing 120,000 or less. Above this amount you pay between one and four per cent of the purchase price. 0 – 120,000 = 0% 120,001 – 250,000 = 1% 250,001 – 500,000 = 3% 500,001 or more = 4% NB – these figures are set by the Government, and are subject to change.
Stamp duty land tax (SDLT) is payable on purchases of houses, flats and other UK land and buildings and certain leases. Under SDLT, your solicitor or licensed conveyancer will ask you to sign a land transaction return – SDLT1. This can be ordered from the HM Revenue & Customs (HMRC) Orderline on Tel 0845 302 1472. You can download a sample of the land transaction return form from the HMRC website (PDF) – Opens in a new window. Land transaction return guidance notes SDLT6 will be sent with the return, or you can view the land transaction guidance notes on the HMRC website – Opens in a new window. The completed return will contain all the information required by HMRC regarding the purchase. As the buyer or tenant you are responsible for the return and payment of the SDLT. Normally the completion of the form and its submission will be handled by the solicitor or licensed conveyancer acting for you in the purchase. Upon receipt of a completed return and payment of SDLT, HMRC will issue a c
