Stamp Duty Land Tax (SDLT) is a progressive tax paid when purchasing residential property in England and Northern Ireland.
Since April 2016 you must now pay 3% on top of the normal SDLT rates if buying a new residential property means that you'll own more than one, even if your other properties are outside of the UK. The table shows the SDLT bands including the 3% higher rate.
What is UK Stamp Duty?
Stamp Duty Land Tax (SDLT) is a progressive tax usually paid when purchasing a residential property in England and Northern Ireland (there's a separate Land & Buildings Transaction Tax that applies in Scotland and Wales).
SDLT is payable to the HMRC 30 days from the date of completion or you may risk a fine. Your solicitor or legal adviser should take care of this for you and ensure you don't miss the deadline. Some buyers prefer to add on the SDLT amount to their mortgage loan. A mortgage provider will be able to give you more details.
SDLT is paid by everyone purchasing a residential or non-residential property in England and Northern Ireland, including overseas buyers, corporate bodies and non-natural persons.
The higher rate for additional properties applies if you already own a property overseas and different SDLT rates and thresholds apply to non-residential property or mixed-use land.
Alternatively, where six or more dwellings are purchased in a single transaction, then the buyer can choose to treat all the properties collectively as a non-residential transaction so that commercial SDLT rates apply. This can sometimes be more favourable than multiple dwellings relief.
As SDLT is only payable on the land purchase, removable fixtures and fittings, or chattels, such as freestanding wardrobes, sofas, fridges, carpets and curtains, are not subject to SDLT and can, therefore, be subtracted from from the total property price. Everything 'attached' to property such as light switches technically form part of the property and are subject to SDLT.
If a seller is willing to leave certain chattels, you should agree to pay a reasonable amount between yourself and the vendor and subtract it from the agreed purchase price. Remember to seek advice from a tax lawyer or conveyancer.