Stamp Duty Land Tax
Stamp Duty
When you buy shares, you usually pay a tax or duty of 0.5% on the transaction. If you buy shares electronically Stamp Duty Reserve Tax (SDRT) is payable. For shares purchased using a stock transfer form, you will pay Stamp Duty if the transaction is over £1,000.
Stamp Duty Land Tax
SDLT is payable on land and property transactions in England and Northern Ireland.
Property transactions in Scotland are subject to Land and Buildings Transaction Tax (LBTT).
Property transactions in Wales are subject to Land Transaction Tax (LTT) from 1 April 2018. Prior to April 2018 SDLT applied in Wales.
Residential property
The rates apply to the portion of the total value which falls within each band.
| Consideration (£) | Rate (%) |
|---|---|
| 0 – 125,000 | 0 |
| 125,001 – 250,000 | 2 |
| 250,001 – 925,000 | 5 |
| 925,001 – 1,500,000 | 10 |
| 1,500,001 and above | 12 |
From April 2016 these rates may be increased by 3% where further residential properties, costing over £40,000, are acquired.
First time buyers
From 22 November 2017 first time buyers may be eligible for first time buyer relief on purchases of residential property up to £500,000. The rates apply to the portion of the total value which falls within each band.
| Consideration (£) | Rate (%) |
|---|---|
| 0 – 300,000 | 0 |
| 300,001 – 500,000 | 5 |
| Over 500,000 | Normal rates apply |
Non-residential property
The rates apply to the portion of the total value which falls within each band.
| Consideration (£) | Rate (%) |
|---|---|
| 0 – 150,000 | 0 |
| 150,001 – 250,000 | 2 |
| Over 250,000 | 5 |
Land and Buildings Transaction Tax
Land and Buildings Transaction Tax (LBTT) is payable on land and property transactions in Scotland.
Residential property
| Consideration (£) | Rate (%) |
|---|---|
| 0 – 145,000 | 0 |
| 145,001 – 250,000 | 2 |
| 250,001 – 325,000 | 5 |
| 325,001 – 750,000 | 10 |
| 750,001 and above | 12 |
The rates apply to the portion of the total value which falls within each band. Rates may be increased by 3% where further residential properties, costing over £40,000, are acquired.
Non-residential property
| Consideration (£) | Rate (%) |
|---|---|
| 0 – 150,000 | 0 |
| 150,001 – 350,000 | 3 |
| Over 350,000 | 4.5 |
The rates apply to the portion of the total value which falls within each band.
Land Transaction Tax
Land Transaction Tax (LTT) is payable on land and property transactions in Wales from 1 April 2018. Prior to 1 April 2018 SDLT applied in Wales.
Residential property
| Consideration (£) | Rate (%) |
|---|---|
| 0 – 180,000 | 0 |
| 180,001 – 250,000 | 3.5 |
| 250,001 – 400,000 | 5 |
| 400,001 – 750,000 | 7.5 |
| 750,001 – 1,500,000 | 10 |
| 1,500,000 and above | 12 |
The rates apply to the portion of the total value which falls within each band. Rates may be increased by 3% where further residential properties, costing over £40,000, are acquired.
Non-residential property
| Consideration (£) | Rate (%) |
|---|---|
| 0 – 150,000 | 0 |
| 150,000 – 250,000 | 1 |
| 250,001 – 1,000,000 | 5 |
| Over 1,000,000 | 6 |
The rates apply to the portion of the total value which falls within each band.
For more information on Stamp Duty Land Tax, Book a Free Consultation
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