UK STAMP DUTY RATES 2018

Highlights:

SDLT Rates 2018

(England, Wales* & NI)

RESIDENTIAL
Buyer: private person
BandRate
up to £125K0%
£125K+ to £250K2%
£250K+ to £925K5%
£925K+ to £1.5M10%
£1.5M+12%
This table of the most commonly required stamp duty rates applies to Freehold transactions as well as any lease premium element of Leasehold transactions.

Reference: GOV.UK on Residential Property Rates.
RESIDENTIAL (2nd home / BTL)
Buyer: private person*
BandRate
up to £125K3%
£125K+ to £250K5%
£250K+ to £925K8%
£925K+ to £1.5M13%
£1.5M+15%
* The threshold for second homes / BTL transactions is £40,000; below this price, no SDLT is due.

NOTE 1: If the exchange of contracts occurred before 26th November 2015, these higher rates may not apply.

NOTE 2: These higher stamp duty rates and bands do not apply to leasehold transactions entailing an Assigned Lease (see the 2018 Glossary of Stamp Duty Terms for a definition) with less than 7 years to run.

NOTE 3: These higher stamp duty rates and bands also do not apply where a third party holds a lease on the property with over 21 years still to run.

NOTE 4: Mixed-use properties are also exempt; instead, they are treated as Non-Residential.

NOTE 5: Further exceptions are outlined in the reference (below).

Reference: GOV.UK on Buying an Additional Residential Property.
RESIDENTIAL
Buyer: company
BandRate
up to £125K3%
£125K+ to £250K5%
£250K+ to £925K8%
£925K+ to £1.5M13%
£1.5M+15%
NOTE 1: A special stamp duty rate of 15% on residential property transactions over £500,000 is charged to "non-natural persons" (i.e. companies, partnerships, etc.), except for the cases outlined in the reference (below); in those cases (which include the very common one wherein a company procures a residential property for development or buy to let purposes), the rates in this table apply (and for now, this website's Full Calculator assumes that company transactions fall within this table's scope).

Reference: GOV.UK on SDLT for Corporate Bodies.

NOTE 2: The threshold for company stamp duty rates is £40,000; below this price, no SDLT is due.

NOTE 3: These higher company stamp duty rates do not apply where a third party holds a lease on the property with over 21 years still to run.

Reference (for Notes 2 & 3): GOV.UK on Higher Rates for Additional Properties.
NON-RESIDENTIAL* / MIXED USE**
Buyer:private person or company
BandRate
up to £150K0%
£150K+ to £250K2%
£250K+5%
* Non-Residential refers to commercial buildings, farm land, forest land, any property that is not used as a residential dwelling, or (somewhat paradoxically in terms of the nomenclature), 6 or more residential dwellings acquired in one transaction.

** Mixed Use refers to properties that incorporate both commercial and residential elements, for example, a shop with a flat above it.

Reference: GOV.UK on Non-Residential & Mixed Use Rates.



Rates for
Net Present Value of rent
(applies to new leases only)

NET PRESENT VALUE* (RESIDENTIAL)
BandRate
up to £125K0%
£125K+1%
* Net Present Value (NPV) is a statistical representation of a lease's rent in today's monetary values.

For the most in-depth article on the web on NPV, complete with formulae and a downloadable version of the information, see this website's page on Net Present Value.
NET PRESENT VALUE (NON-RESIDENTIAL)
BandRate
up to £150K0%
£150K+ to £5M1%
£5M+2%


NOTE 1: Special rules also apply for:

Shared Ownership Property
Land and Property Transfers
Linked Transactions

NOTE 2: There are also Reliefs and Exemptions for certain conditions.


* From April 2018, property transactions in Wales will no longer be subject to SDLT; instead, they will fall under the forthcoming Land Transaction Tax (LTT) rules.

See the LTT rates tables on this page for more details.

Primary Sources:

GOV.UK Residential Rates
GOV.UK Non-Residential Rates

LTT Rates April 2018

(Wales only)

RESIDENTIAL
Buyer: private person
BandRate
up to £180K0%
£180K+ to £250K3.5%
£250K+ to £400K5%
£400K+ to £750K7.5%
£750K+ to £1.5M10%
£1.5M+12%
This first table of Land Transaction Tax rates applies to Freehold transactions only and accordingly applies to the same most commonly required conditions as the first stamp duty rates table on this page does.

More tables and information to follow as further details of the new Welsh Land Transaction Tax emerge. (LTT will be the April 2018 successor to Stamp Duty).

Reference: Wales Online News, 3 Oct 2017.
RESIDENTIAL (2nd home / BTL)*
Buyer: private person
BandRate
up to £180K3%
£180K+ to £250K6.5%
£250K+ to £400K8%
£400K+ to £750K10.5%
£750K+ to £1.5M13%
£1.5M+15%
This table applies to Freehold transactions only.

* The provisional assumption (absent explicit detail from the devolved Welsh government) is that the threshold will be £40,000, below which price no LTT will be due.

More information to follow when the Welsh government reveals further details.
NON-RESIDENTIAL / MIXED USE
Buyer:private person or company
BandRate
up to £150K0%
£150K to £250K1%
£250K to £1M5%
£1M+6%
NOTE: Fuller details are unknown at this time.
NON-RESIDENTIAL NET PRESENT VALUE
BandRate
up to £150K0%
£150K to £2M1%
£2M+2%
NOTE: Fuller details are unknown at this time.

LBTT Rates 2018

(Scotland only)

RESIDENTIAL*
Buyer: private person
BandRate
up to 145K0%
145K+ to 250K2%
250K+ to 325K5%
325K+ to 750K10%
750K+12%
* A residential property transaction is specifically defined by REVENUE.SCOT in compliance with the relevant Scottish Law (LBTT(S)A 2013 section 24(3)).
RESIDENTIAL ("Additional Dwelling")*
Buyer: private person**
BandRate
up to 145K3%
145K+ to 250K5%
250K+ to 325K8%
325K+ to 750K13%
750K+15%
* Additional Dwelling is a Scottish term referring to a residential property acquired as a second home or as a buy to let.

** The threshold for Additional Dwellings is £40,000; below this price, no LBTT is due.
RESIDENTIAL
Buyer: company / trust / etc. *
BandRate
up to 145K3%
145K+ to 250K5%
250K+ to 325K8%
325K+ to 750K13%
750K+15%
* All Scottish residential property acquisitions by companies and most forms of trusts are automatically subject to Additional Dwelling Supplement. See the 2018 Glossary of Stamp Duty Terms for more details.
NON-RESIDENTIAL*
Buyer:private person or company
BandRate
up to 150K0%
150K+ to 350K3%
350K+4.5%
* Largely non-residential transactions entailing a residential property component (i.e. "mixed use" transactions) are generally treated as though they are wholly non-residential property transactions, as are transactions entailing 6 or more dwellings.

For more details, see REVENUE.SCOT's definition of Non-Residential.



Rates for Scottish Leases

RESIDENTIAL LEASES
LBTT does not generally apply to residential property leases*.
* See REVENUE.SCOT's commentary on this for further details.
NON-RESIDENTIAL LEASES
NET PRESENT VALUE*
OF LEASE'S RENT
BandRate
Up to £150K0%
£150K+1%
* Net Present Value (NPV) is a representation in today's money of the value of future rents.

NPV for Scottish leases is calculated using the formula shown on the documentation on Land and Buildings Transaction Tax (Scotland) Act 2013.

For a full treatment of NPV in general (albeit within the context of SDLT), see this website's Net Present Value page.

NOTE 1: If there is also a lease premium (or "grassum") or other chargeable consideration in connection with the transaction, that element may be separately subject to LBTT at the triple-band Non-Residential rates shown above.

NOTE 2: Unlike the case with SDLT, in Scotland an additional LBTT return must be filed on every 3 year anniversary of the lease's Effective Date (see 2018 Glossary of Stamp Duty Terms for definition of Effective Date) to reflect any interim changes to it.
Primary Sources:

REVENUE.SCOT LBTT Rates
REVENUE.SCOT Residential Rates
REVENUE.SCOT Non-Res. Rates
REVENUE.SCOT LBTT on Leases

How will Wales' forthcoming LTT compare with SDLT and LBTT?


At the standard residential freehold rates and bands, LTT looks like an "LBTT-lite"; perhaps the Welsh are keen to avoid the same condemnation that has plagued LBTT.

Graph: SDLT-LBTT-LTT Comparison (Standard Residential Rates)


The curves below show how the rates and bands translate into de facto, cumulative rates charged for any given property transaction price under the three regimes' stamp duty rates.

Graph: SDLT-LBTT-LTT Comparison (Cumulative, de facto Stamp Due)


The final graph (below) shows the real-world stamp tax payable under the three systems. While plainly LBTT and LTT have been designed to generate more tax on mid-to-high price property transactions, the respective devolved governments (Scotland and Wales) will point out that most property transactions occur towards the lower end of the price spectrum, where both LBTT and LTT are more favourable to the buyer than SDLT is.

Conversely, property investors interested in mid-to-high priced buy to let properties already find Scotland, and will (to a lesser degree) find Wales, considerably less appealing than England and Northern Ireland, the remaining SDLT realms.

Graph: SDLT-LBTT-LTT Comparison (Tax Payable)

Calculating SDLT & LBTT: To work out SDLT or LBTT now, use the calculators on the main Stamp Duty Calculator page, which replicate much of the features of the government's own calculators, but in an easier-to-use way.

Calculating LTT: To work out LTT now (even though the new "Welsh stamp duty" won't come into effect until April 2018), use the Land Transaction Tax Calculator.

SDLT Rates & Bands Reference: GOV.UK Stamp Duty Land Tax page
LBTT Rates & Bands Reference: REVENUE.SCOT Land & Buildings Transaction Tax page

HELP SUSTAIN THIS RESOURCE...

How?

By kindly placing a link on your website that points back to this page.

It costs you nothing, it helps your readers find a useful resource and it helps this website's standing on the search engines.