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What is Stamp Duty Land Tax?

SDLT is a tax on the purchase price of land and buildings. When you buy a property or take on a lease you may have to pay SDLT.

Paying SDLT

If you buy either a freehold or a leasehold property and the purchase price is more than £125,000, you pay SDLT of between one and 15 per cent of the whole purchase price. See the table below for more detail.

If the purchase price is £125,000 or less you don't pay any SDLT.

You can check current rates of SDLT on the HM Revenue & Customs (HMRC) website.

• SDLT rates from HMRC Opens new window

SDLT Disadvantaged Areas Relief

If you buy property in an area designated by the government as 'disadvantaged' you may qualify for Disadvantaged Areas Relief. In this case the threshold for SDLT is £150,000.

• More on Disadvantaged Areas Relief - HMRC website Opens new window

You can check the HMRC website to see if the property you are buying is in an area designated as disadvantaged. (You'll need to scroll down to use the postcode search tool.)

• More about qualifying areas from HMRC Opens new window

• Use HMRC's Disadvantaged Areas Relief postcode search tool Opens new window

Paperwork

As the buyer of the property, you are responsible for completing the land transaction return and paying the SDLT.

However, in practice, your solicitor or licensed conveyancer will usually handle this for you and send it to HMRC on your behalf.

You should check that all the information on the form is correct and complete before signing the declaration.

More useful links

• Mortgages - how they work and where to find one

• Planning for buying a home

Useful contacts

• Money, tax and benefits contacts