LEGAL
Bevin Woby, Director at Shared Direction Conveyancing, explains everything you will need to understand about Stamp Duty Land Tax All You Need To Know About Stamp Duty Land Tax
Stamp Duty Land Tax (SDLT) is paid on all properties.
The standard rates are as follows: 9 Property price up to £125,000 Nil
9 The portion from £125,001 to £250,000 2% 9 The portion from £250,001 to £925,000 5% 9 The portion from £925,001 to £1.5m 10% 9 The portion above £1.5m 12%. There are reliefs available to first time buyers and provisions that require additional SDLT to be paid by people who are buying an “additional property” or where a property is bought by an overseas resident. FIRST TIME BUYER RELIEF A property purchase by first time buyers will be exempt from SDLT if the purchase price is below £300,000. For purchases between £300,000 and £500,000 the first £300,000 is exempt, which is a saving of £5,000. First Time Buyer Relief isn’t available if the purchase price is higher than £500,000. To qualify for the relief you must not have owned or part-owned a residential property at any time, either now or in the past, anywhere in the world. In the case of joint buyers, this must apply to you both. SDLT PAYABLE ON ADDITIONAL PROPERTIES An additional 5% SDLT is payable in addition to the SDLT calculated at standard rates by anyone buying an “additional property”. The extra duty is payable by anyone who already owns a property (such as their main residence) but then buys an additional residential property, such as a second home or buy-to-let property. In the case of joint buyers this applies if any of the buyers owns another property. Although appearing to be straightforward, the rules can be complex
in certain circumstances, for example there are regulations in relation to your rights to a refund of any additional SDLT paid should you sell your main residence within a prescribed period of time after buying the additional property. If you think that this might be relevant to you, we would urge you to read the guidance issued by the Government on this subject*.
above apply to you or whether you should pay SDLT at standard rates by signing an SDLT Reply Form and providing the same. Based on the declaration, you will then be sent a Land Transaction Return Form for you to sign which we will send to the Inland Revenue on completion and an SDLT 5 will be issued to evidence the same. *Shared Direction Conveyancing does not give tax advice. If you are unsure on the tax position in relation to your transaction then we would advise that you to speak to a professional tax adviser prior to exchange of contracts for advice. Shared Direction Conveyancing is the only law firm in the UK dedicated solely to acting for purchasers of new build and Shared Ownership properties. If you are buying a new build or Shared Ownership property, Shared Direction Conveyancing is your ideal choice of law firm to share your journey into homeownership, as we have the experience and expertise to guide you through the process as quickly and simply as possible.
SURCHARGE FOR NON-UK RESIDENTS
There is a 2% surcharge on residential properties bought by non-UK residents. This applies on top of all other residential rates of SDLT including the higher rates for additional dwellings. The rules surrounding this are complex and beyond the scope of this brief summary. If you think that this might apply to you, please read the guidance issued by the UK Government. SDLT REPLY FORM You will be required to advise your legal representative as to whether any of the
For further information visit sdc-legal.co.uk or for an instant quotation call 0808 273 0273
110 First Time Buyer June/July 2026
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