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Tax Rates & Allowances

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Land Tax Duties

Stamp Duty Land Tax

Residential Land or property

Stamp Duty Land Tax (SDLT) is charged on transactions of land or buildings located in England or Northern Ireland. The amount due is calculated at each rate on the portion of the purchase price which falls within each rate band. The tax is payable within 14 days on the completion date of the deal.

Rates from 23 September 2022 to 31 March 2025:

Rate Property value band
0% Up to £125,000
5% £250,000 - £925,000
10% £925,000 - £1,500,000
12% Over £1,500,000

From 1 October 2021 to 22 September 2022

Rate Property value band
0% Up to £125,000
2% £125,000 - £250,000
5% £250,000 - £925,000
10% £925,000 - £1,500,000
12% Over £1,500,000

From 1st July 2021 to 30 September 2021 the following rates were applied

Rate Property value band
0% Up to £125,000
5% £250,000 - £925,000
10% £925,000 - £1,500,000
12% Over £1,500,000

From 1April 2016 a supplement of 3% applies where purchaser owns an interest in two or more homes at the end of the day of the transaction, and the property is not a replacement for their main home, or the purchaser is a corporate body.

First Time buyers' relief

This can apply where all the purchasers of the property have never owned an interest in a residential property.

From 23 September 2022 to 31 March 2025, first time buyers' relief applies so the first £425,000 is charged at 0%, if the total purchase price does not exceed £625,000.

From November 2017, the relief applies 0% SDLT up to £300,000, with reduced liability up to £500,000. Any purchases above £500,000 would attract the normal stamp duty rates on the whole purchase price.

Non-Residential or mixed property

Rate from 17 March 2016 Purchase price/lease premium or transfer value
0% Up to £150,000
2% £150,001 - £250,000
5% Over £250,000

Lease rentals

Effective date Residential property Non-residential or mixed property Rate
NPV of rents NPV of rents %
From 23 September 2022 to 31 March 2025 Up to £250,000 Up to £150,000 0
Over £250,000 £150,001 to £5m 1
N/A Over £5m 2
From 1 October 2021 to 22 September 2022 Up to £125,000 Up to £150,000 0
Over £125,000 £150,001 to £5m 1
N/A Over £5m 2
From 1 July 2021 to 30 September 2021 Up to £250,000 Up to £150,000 0
Over £250,000 £150,001 to £5m 1
N/A Over £5m 2

Where the chargeable consideration includes rent, SDLT is payable on the lease premium and on the 'net present value' (NPV) of the rent payable.

Where the annual rent for the lease of non-residential property amounts to £1,000 or more, the 0% SDLT band is unavailable in respect of any lease premium.

Land and buildings transaction tax

Residential Land or property

Land and buildings transaction tax (LBTT) is charged on transactions concerning property located in Scotland from 1 April 2015.

Rates from 1 April 2021:

Main Rate ADS rate (from 16 December 2022) Property value band
0% 6% Up to £145,000
2% 6% £145,000 - £250,000
5% 6% £250,001 - £325,000
10% 6% £325,001 to £750,000
12% 6% Over £750,000

The additional dwelling supplement (ADS) applies to the whole of the value where purchaser owns an interest in two or more homes at the end of the day of the transaction, and the property is not a replacement for their main home, or the purchaser is a corporate body. The ADS may apply to mixed-use properties where the non-residential rates apply.

Non-Residential or mixed property

Rate from 7 February 2020 Purchase price/lease premium or transfer value
0% Up to £150,000
1% £150,001 - £250,000
5% Over £250,000

Lease rentals

Rate from 7 February 2020 NPV of rents
0% Up to £150,000
1% £150,001 to £2 million
2% Over £2 million

Land Transaction Tax

Land transaction tax (LTT) applies to transactions of land and property located in Wales from 1 April 2018

Residential property

Rates from 10 October 2022

Wholly residential property value: Main rate % Wholly residential property value: Higher rates %
Up to £225,000 0 Up to £180,000 4.0
£225,001 - £400,000 6.0 £180,001 - £250,000 7.5
£400,001 - £750,000 7.5 £250,001 - £400,000 9.0
£750,001 - £1,500,000 10.0 £400,001 - £750,000 11.5
Over £1,500,000 12.0 £750,001 - £1,500,000 14.0
Over £1,500,000 16.0

The higher rates apply to purchases of residential property for £40,000 or more, by an individual or connected individuals that already own one or more other properties, or where the purchaser is a company.

Non-residential and mixed use.

Rates from 22 December 2020

Purchase price Rate for freehold purchase or lease premium
Up to £225,000 0%
£225,000 to £250,000 1%
£250,000 to £1 million 5%
Over £1 million 6%

Lease rentals

NPV of rents threshold Rate
Up to £225,000 0%
£225,000 to £2 million 1%
Over £2 million 2%

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