| Property value |
SDLT payable |
| £125,000 or less |
Nil |
| Over £125,000 up to 250,000 |
1% |
| Over £250,000 up to £500,000 |
3% |
| Over £500,000 |
4% |
The starting threshold is increased to £150,000 if you are buying property in an area designated as ‘disadvantaged’ (an Enterprise Area - your estate agent or solicitor should be able to confirm if this applies). The threshold is also £150,000 for non-residential properties.
A higher threshold of £250,000 applies in all areas for first time buyers where completion is on or after 25 March 2010 and before 24 March 2012 and they intend to occupy the property as their main home. To help fund this temporary tax relief an additional rate of SDLT will be introduced at 5% on residential properties costing £1 million or more, where the transaction is completed after 5 April 2011.
Example: You are buying a property for £400,000. SDLT is 3% x £400,000 = £12,000.
Tax tip: Where a property is being sold for a price just above a SDLT threshold, you may be able to pay separately for furnishings and fittings to reduce the tax payable. For example, tax on a £501,000 property is £20,040 (i.e. 4%), whereas on a £500,000 property it is £15,000. Provided that the valuation of the furnishings and fittings is genuine, paying £500,000 for the house and £1,000 for the furnishings and fittings would save £5,040 in tax.
