Stamp Duty Land Tax

Stamp Duty Land Tax replaced Stamp Duty in December 2003 and is a tax on the documents that transfer ownership of a property. When you buy a property you may have to pay Stamp Duty Land Tax.

Paying Stamp Duty Land Tax
You don't have to pay any Stamp Duty Land Tax on residential property costing £125,000 or less.

Above this amount you pay between one and four per cent of the purchase price.

Purchase price of residential property Rate of Stamp Duty Land Tax (percentage of the total purchase price)

• £0 - £125,000 0%
• £125,001 - £250,000 1%
• £250,001 - £500,000 3%
• £500,001 or more 4%

You can check current rates of Stamp Duty Land Tax on the HMRC website. The information contained on this web page is accurate as at 16/05/2006.
Stamp Duty Land Tax rates from HMRC (external link) (opens new window)

Stamp Duty Land Tax exemption in 'disadvantaged areas'
Certain areas, known as 'disadvantaged areas', have special Stamp Duty Land Tax treatment. There are around 2,000 of these areas in the UK.

You do not have to pay any Stamp Duty Land Tax if all of the following apply to the property you are buying:

• it is in a designated 'disadvantaged area'
• it is residential
• the purchase price is £150,000 or less

You can check the HMRC website to see if the property you are buying is in a 'disadvantaged area'.
List of disadvantaged areas from HMRC (opens new window)

The information contained on this page is for information purposes only.

This site contains information for clients looking for a mortgage broker and remortgage advice.