Stamp Duty Land Tax (SDLT)

    SDLT is a property transaction tax levied by HMRC. It is incurred by the SPV on purchase of the property. SDLT is only payable on properties worth in excess of £125,000.

    The tax rates are tiered and increase in line with property values as below;

    • 0% SDLT on the first £125,000 of the property price,
    • 2% SDLT on the next £125,000,
    • 5% SDLT on the next £675,000 and
    • 10% SDLT on the next £575,000 and
    • 12% SDLT on the rest i.e. above 12% tax on the purchase price above £1.5 million.

    Here is an example of the tax bill on a property purchased for £1 million:

    • (0% x £125,000) = £0
    • (2% x £125,000) = £2,500
    • (5% x £675,000) = £33,750
    • (10% x £75,000) = £7,500
    • Total tax bill = £43,750.
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