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  • Writer's pictureKaren Lowen

Stamp Duty Land Tax

June 2024

Stamp duty land tax - often abbreviated to SDLT - is a tax paid by many buyers when purchasing a property. It is payable on the purchase of a freehold or leasehold property including part shares.

If you are a first time buyer - meaning that you have never owned, or part-owned a property before, then you are exempt from paying stamp duty on any property that is valued at less than £425,000.

For other buyers for whom the property is going to be their primary residence (where they will live) the rates payable are based on a percentage of the value of the property. There is no stamp duty payable on properties valued at less than £250,000, after which the rates are:

£250,001 - £925,000 - 5%

£925,000 - £1.5 million - 10%

Above £1.5 million - 12%

If you are buying a second property, such as a holiday home or somewhere you are going to rent out, then you will have to pay an extra 3% on the above rates. This includes paying a minimum of 3% on all second property purchases as there is no exempt amount. This is the case even if you are buying only part of a property, for example if you are purchasing a holiday home with other family members or friends.

Stamp duty rates are subject to change so make sure you check how much you will pay before you go ahead and buy a property to ensure that you can afford to either pay the amount due in total or that your mortgage provider is happy to add it to your mortgage.

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