What are the UK Stamp Duty rates and who needs to pay it? | Home

Thursday 24 August 2023

Stamp Duty is a Land Tax that must be paid when purchasing property in the UK for an amount over £250,000. The total amount you owe in SDLT will depend on the purchase date, how much the property costs and if you qualify for a discount or exemption.

SDLT applies to residential and commercial properties, with three different rates for each type of purchase depending on the value of the transaction.

The rates for a single property are:

The first-rate is 0%, which applies to purchases up to £250,000. This means no Stamp Duty will need to be paid if you buy a property worth this amount or less.

The second rate is 5%, which applies to any amount between £250,001 -£925,000.

The third rate is 10%, which applies to any amount over £925,000 - £1.5 million.

Exemption for first-time homeowners:

First-time homeowners can claim relief if it is their first property purchase of a value up to £625,000. This will allow them to have no SDLT on purchases up to £425,000 and a 5% SDLT rate on the remaining portion from £425,001 - £625,000.

Any purchases above £625,000 for first-time landlords mean they will not be eligible for the tax relief.

Rates for additional properties:

If you were to expand your portfolio, any additional properties will usually incur an extra 3% surcharge on top of the standard rates as you own more than one property.

If you were to sell your main residence within 36 months of purchasing another property, you can apply for a refund of the additional charges on the Government website.

Rates for overseas investors:

For overseas property investors (defined as not present in the UK for at least 183 days (6 months) during the 12 months before your purchase), the rules surrounding Stamp Duty are a little different. Usually, if you are not a UK resident and you are purchasing property in England, you will incur a 2% surcharge on top of any other rates. This could vary depending upon individual circumstances such as previous ownership status, etc.

Furthermore, non-UK residents who intend to rent out their newly acquired assets must also pay Non-Resident Landlord (NRL) tax, which currently stands at 20%. This applies even when no rental income is generated from that particular property.

Calculating your SDLT:

A tool on the UK Government website allows you to calculate how much tax you will need to pay on your next property investment by clicking here.

However, if you want to avoid paying Stamp Duty Land Tax on your next investment, check out this unique investment opportunity below:

It's always best practice, before investing in any new properties – that investors carry out their own due diligence and seek professional advice.

*Featured Investment Opportunity With FREE STAMP DUTY*

We have a fantastic investment opportunity in Burton-On-Trent, offering investors modern apartments in The Plough Maltings development.

The Plough Maltings is a converted Grade II listed building located only a 3-minute walk to Burton-On-Trent's town centre.

This development is completing Q3 this year and is ideally situated between Derby and Birmingham, providing investors with solid yields of up to 14.99%.

Prices start at just £146,034 - with the FREE stamp duty incentive, these remaining apartments won't be around long!

Get in touch for more details: 


Download our Brochure