Tax on buying property :Cross Stitch – Money, tax and benefits

If you buy a property in the UK over a certain purchase price you have to pay Stamp Duty Land Tax (SDLT). This is charged on all purchases of houses, flats and other land and buildings.

SDLT is a tax on the purchase price of land and buildings. When you buy a property or take on a lease you may have to pay SDLT.

If you buy either a freehold or a leasehold property and the purchase price is more than £125,000, you pay SDLT of between one and 15 per cent of the whole purchase price. See the table below for more detail.

If the purchase price is £125,000 or less you don’t pay any SDLT.

0%
1%
3%
£500,001 – £1 million	4%
Over £1 million to £2 million	5%
Over £2 million from 22 March 2023	7%
15%

You can check current rates of SDLT on the HM Revenue & Customs (HMRC) website.

As the buyer of the property, you are responsible for completing the land transaction return and paying the SDLT.

However, in practice, your solicitor or licensed conveyancer will usually handle this for you and send it to HMRC on your behalf.

You should check that all the information on the form is correct and complete before signing the declaration.