Stamp Duty Land Tax Rate Changes

Stamp Duty Land Tax rates

From 4th December 2014, Stamp Duty Land Tax rates have changed. The Standard Duty Land Tax rates is now charged depending on the portion of the purchase price that falls within rate bands.

What is Stamp Duty Land Tax?

When you buy a property over a certain price in the UK, you will have to pay Stamp Duty Land Tax (SDLT).

The rate you pay is dependant on:

  • The price of purchase
  • If the property is residential

(SDLT may also apply if you lease a property.)

December changes

Before 4th December 2014, SDLT was charged as a single percentage of the property price. However, after 4th December 2014,  The Standard Duty Land Tax rates is now charged depending on the portion of the purchase price that falls within rate bands.

What Stamp Duty will I have to pay?

For residential land or property, Stamp Duty Land Tax will be worked out as follows:

Stamp Duty Land Tax Rates Correct from 4th December 2014

To calculate how much Stamp Duty Land Tax you’ll need to pay, you can use HMRC’s Stamp Duty Land Tax calculator here. This calculator is up-to-date using the rules which have been effective since 4th December 2014.

How to pay Stamp Duty

To pay Stamp Duty you will need to submit a Stamp Duty Land Tax return and pay what you owe in 30 days from the date of completion (this is when all contracts are signed and dated).  If you take longer than 30 days you could face a fine.

If your property is below the threshold and you have nothing to pay, you still have to submit a return.

Corporate bodies

For residential properties costing over £500,000, bought by bodies such as companies and collective investment schemes, SDLT is charged at 15%.

However, there are some exceptions. If the property is used for: a property rental business, a property development or resale trade or providing admission to visitors on a commercial basis, you will pay SDLT based on the new rates and bands.

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Please note this blog is for information purposes only.

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