The value you pay SDLT on (the consideration)
The total value you pay SDLT on (sometimes called the consideration) is usually the price you pay for the property or land.
Sometimes it might include another type of payment like:
- goods
- works or services
- release from a debt
- transfer of a debt, including the value of any outstanding mortgage
How and when to pay
You must send an SDLT return to HMRC and pay the tax within 30 days of completion.
If you have a solicitor, agent or conveyancer, they’ll usually file your return and pay the tax on your behalf on the day of completion and add the amount to their fees. They’ll also claim any relief you’re eligible for, such as if you’re a first-time buyer.
If they don’t do this for you, you can file a return, and pay the tax yourself.
Residential property rates
You usually pay SDLT on increasing portions of the property price above £125,000 when you buy residential property, e.g. a house or flat.
The standard rates are as follows:
| Property or lease premium or transfer value | SDLT rate |
| Up to £125,000 | Zero |
| 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 £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
There are different rules if you’re buying your first home and the purchase price is £500,000 or less.
Rates if you’re buying your first home
You can claim a discount (relief) so you don’t pay any tax up to £300,000 and 5% on the portion from £300,001 to £500,000.
You are eligible if:
- you, and anyone else you’re buying with, are first-time buyers
- you complete your purchase on or after 22 November 2017
Higher rates for additional properties
You’ll usually have to pay 3% on top of the normal SDLT rates if buying a new residential property means you’ll own more than one – see article SDLT – additional rate if new home
SDLT is charged at 15% on residential properties costing more than £500,000 bought by corporate bodies. They may also need to Annual Tax on Enveloped Dwellings – see article Annual Tax on Enveloped Dwellings
The 15% rate does not apply to property bought by a company that is acting as a trustee of a settlement or bought by a company to be used for:
- a property rental business
- property developers and trader
- property made available to the public
- financial institutions acquiring property in the course of lending
- property occupied by employees
- farmhouses
Non-residential (commercial) and mixed use land and property rates
You pay SDLT on increasing portions of the property price when you pay £150,000 or more for non-residential or mixed-use land or property.
Non-residential property includes:
- commercial property, e.g. shops or offices
- agricultural land
- forests
- any other land or property which is not used as a residence
- 6 or more residential properties bought in a single transaction
A ‘mixed use’ property is one that has both residential and non-residential elements, e.g. a flat connected to a shop, doctor’s surgery or office.
The standard rates are as follows:
| Property or lease premium or transfer value | SDLT rate |
| Up to £150,000 | Zero |
| The next £100,000 (the portion from £150,001 to £250,000) | 2% |
| The remaining amount (the portion above £250,000) | 5% |