Stamp Duty Land Tax (SDLT) in the UK is a tax paid by purchasers on the purchase price of a property.
Properties valued at below £125,000 are below the SDLT threshold and no SDLT is payable upon the purchase price.
For properties valued £125,001 – £250,000 SDLT is payable at 1% of the full purchase price and not just the amount over the £125,000 threshold. From £250,001 – £500,000 the rate is 3%, from £500,001 – £1,000,000 it is 4% and above £1,000,001 it is 5%.
For more detailed information on current Stamp Duty Tax bands click here (also includes download of all HMRC tax rates & allowances for 2011-2012)
Unlike other taxes, eg income tax there is no gradient to the tax payable. Once you are in the higher tax bracket for SDLT the tax is paid on the full purchase price. This “slab” taxation method is held by many to be unfair and to distort the property market.
The 1808 Campaign was setup to campaign for Government reform of SDLT. It is supported by many property professionals including; the National Association of Estate Agents (NAEA), Association of Residential Letting Agents (ARLA) and the Council of Mortgage Lenders (CML), to name but a few.
If you would like more information on the history of SDLT and/or to see a reform of SDLT you can download a document detailing the information from this link “1808 Campaign to reform Stamp Duty”.
This article is intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.
