If you're renting or buying commercial property you may need to
know about Stamp Duty Land Tax (SDLT).  For our comprehensive
guide, click
here.  For the current 2015 thresholds - which we assume
you're here for! - read on.

SDLT Residential Thresholds

The residential thresholds change on 4th December
2014.  If you exchanged contracts on or before the
3rd, and completed on 4 December 2014, you have the
option pay SDLT at either the old or new rates.

The current rates are as follows:

  • Property purchase price of up to £125,000 - Zero SDLT
  • Property purchase price of £125,001 - £250,000 - 2 per cent
    SDLT
  • Property purchase price of £250,001 - £925,000 - 5 per cent
    SDLT
  • Property purchase price of £925,001 - £1.5 million - 10 per
    cent SDLT
  • Property purchase price of £1.5 million and up - 12 per cent
    SDLT

IMPORTANT: These rates are not flat.

SDLT is charged in portions: you pay zero on the first £125,000,
then two per cent on any value up to £250,000, and so on.

For example, if a buyer has purchased a house worth £275,000,
they will pay:

  • 0 per cent on the first £125,000
  • 2 per cent on the next £125,000 (amounting to £2,500)
  • 5 per cent on the final £25,000 (amounting to £1,250)

 

So their total SDLT would be £3,750.

This can seem pretty complex if you've not dealt with it before,
but handily HMRC has a calculator ready and waiting to be used,
which you can find here.

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