SDLT UK

SDLT.md

Stamp Duty Land Tax

A TDD journey through a changing tax.

Step 1

In 2003, Stamp Duty Land Tax (SDLT) was introduced.

House price	Rate (%)
Up to £60,000	nil
Over £60,000 to £250,000	1
Over £250,000 to £500,000	3
Over £500,000	4

Reference

Step 2

In 2005, the zero rate threshold was raised to £120,000.

House price	Rate (%)
Up to £120,000	nil
Over £120,000 to £250,000	1
Over £250,000 to £500,000	3
Over £500,000	4

Reference

Step 3

In 2006, the zero rate threshold was further raised, to £150,000 in disadvantaged areas and £125,000 elsewhere.

Disadvantaged areas:

House price	Rate (%)
Up to £150,000	nil
Over £150,000 to £250,000	1
Over £250,000 to £500,000	3
Over £500,000	4

All other areas:

House price	Rate (%)
Up to £125,000	nil
Over £125,000 to £250,000	1
Over £250,000 to £500,000	3
Over £500,000	4

Reference

Step 4

In 2008 the threshold was raised again, to £175,000, as a temporary measure.

However, this only applied to freehold properties or those with 21 or more years left on the lease.

Freehold, or leasehold with at least 21 years remaining:

House price	Rate (%)
Up to £175,000	nil
Over £175,000 to £250,000	1
Over £250,000 to £500,000	3
Over £500,000	4

Leasehold with under 21 years remaining, in disadvantaged areas:

House price	Rate (%)
Up to £150,000	nil
Over £150,000 to £250,000	1
Over £250,000 to £500,000	3
Over £500,000	4

Leasehold with under 21 years remaining, in all other areas:

House price	Rate (%)
Up to £125,000	nil
Over £125,000 to £250,000	1
Over £250,000 to £500,000	3
Over £500,000	4

Reference

Step 5

In 2009, the £175k zero-rate threshold was extended to leasehold properties with leases under 21 years.

House price	Rate (%)
Up to £175,000	nil
Over £175,000 to £250,000	1
Over £250,000 to £500,000	3
Over £500,000	4

Reference

Step 6

At the start of 2010, the temporary £175k threshold was dropped - see step 3.

Reference

Step 7

Later in 2010 the zero-rate threshold was increased £250,000, but only for first time buyers.

Disadvantaged areas:

House price	Rate (%)	First-time buyer rate (%)
Up to £150,000	nil	nil
Over £150,000 to £250,000	1	nil
Over £250,000 to £500,000	3	3
Over £500,000	4	4

All other areas:

House price	Rate (%)	First-time buyer rate (%)
Up to £125,000	nil	nil
Over £125,000 to £250,000	1	nil
Over £250,000 to £500,000	3	3
Over £500,000	4	4

Reference

Step 8

In 2011, a new 5% rate was added for houses worth more than £1M.

Disadvantaged areas:

House price	Rate (%)	First-time buyer rate (%)
Up to £150,000	nil	nil
Over £150,000 to £250,000	1	nil
Over £250,000 to £500,000	3	3
Over £500,000 to £1,000,000	4	4
Over £1,000,000	5	5

All other areas:

House price	Rate (%)	First-time buyer rate (%)
Up to £125,000	nil	nil
Over £125,000 to £250,000	1	nil
Over £250,000 to £500,000	3	3
Over £500,000 to £1,000,000	4	4
Over £1,000,000	5	5

Reference

Step 9

In 2012 an additional 7% rate was added for houses worth more than £2M.

Also the separate zero-rate threshold for first time buyers was removed.

Disadvantaged areas:

House price	Rate (%)
Up to £150,000	nil
Over £150,000 to £250,000	1
Over £250,000 to £500,000	3
Over £500,000 to £1,000,000	4
Over £1,000,000 to £2,000,000	5
Over £2,000,000	7

All other areas:

House price	Rate (%)
Up to £125,000	nil
Over £125,000 to £250,000	1
Over £250,000 to £500,000	3
Over £500,000 to £1,000,000	4
Over £1,000,000 to £2,000,000	5
Over £2,000,000	7

Reference

Step 10

In early 2014, the separate zero-rate threshold for disadvantaged areas was also removed.

House price	Rate (%)
Up to £125,000	nil
Over £125,000 to £250,000	1
Over £250,000 to £500,000	3
Over £500,000 to £1,000,000	4
Over £1,000,000 to £2,000,000	5
Over £2,000,000	7

Reference

Step 11

In late 2014, the way SDLT is calculated changed completely.

Rather than paying the relevant rate on the whole price, you pay it only on the part of the price that exceeded the previous threshold.

House price	Rate (%)
Up to £125,000	nil
The next £125,000 (the portion from £125,001 to £250,000)	2
The next £675,000 (the portion from £250,001 to £925,000)	5
The next £575,000 (the portion from £925,001 to £1,500,000)	10
The remaining amount (the portion above £1,500,000)	12

Reference

Step 12

In 2016, an additional 3% surcharge was added for purchases of additional properties.

House price	Rate (%)	Additional property rate (%)
Up to £125,000	nil	3
The next £125,000 (the portion from £125,001 to £250,000)	2	5
The next £675,000 (the portion from £250,001 to £925,000)	5	8
The next £575,000 (the portion from £925,001 to £1,500,000)	10	13
The remaining amount (the portion above £1,500,000)	12	15

Step 13

In 2017, special rates were added for first-time buyers of properties worth £500k and under.

First-time buyer, house price of £500k or below:

House price	Rate (%)
Up to £300,000	nil
The next £200,000 (the portion from £300,001 to £500,000)	5

All other purchases:

House price	Rate (%)	Additional property rate (%)
Up to £125,000	nil	3
The next £125,000 (the portion from £125,001 to £250,000)	2	5
The next £675,000 (the portion from £250,001 to £925,000)	5	8
The next £575,000 (the portion from £925,001 to £1,500,000)	10	13
The remaining amount (the portion above £1,500,000)	12	15

Step 14

In 2020, the zero-rate threshold of £500k was extended to all buyers.

House price	Rate (%)	Additional property rate (%)
Up to £500,000	nil	3
The next £425,000 (the portion from £500,001 to £925,000)	5	8
The next £575,000 (the portion from £925,001 to £1,500,000)	10	13
The remaining amount (the portion above £1,500,000)	12	15

Reference

Step 15

In 2021, the zero-rate threshold was dropped to £250k and the special rate for first-time buyers of properties of up to £500k was reintroduced.

First-time buyer, house price of £500k or below:

House price	Rate (%)
Up to £300,000	nil
The next £200,000 (the portion from £300,001 to £500,000)	5

All other purchases:

House price	Rate (%)	Additional property rate (%)
Up to £250,000	nil	3
The next £675,000 (the portion from £250,001 to £925,000)	5	8
The next £575,000 (the portion from £925,001 to £1,500,000)	10	13
The remaining amount (the portion above £1,500,000)	12	15

Reference

Step 16

In 2021 the zero-rate threshold returned to £125,000 - see step 13.

Reference