UK Stamp Duty: Understanding the Basics

Stamp Duty Land Tax (SDLT) is a tax imposed by the UK government on the purchase of property or land. It applies to residential and commercial properties in England, Wales, and Northern Ireland. In Scotland, a similar tax called the Land and Buildings Transaction Tax (LBTT) is applicable.

SDLT is calculated based on the purchase price of the property in question. The rates and thresholds for SDLT can vary depending on the type of property and the value. The rates are usually progressive, meaning that different portions of the property’s value are taxed at different rates.

The following are the basic SDLT rates for residential properties in England, Wales, and Northern Ireland:

– Up to £125,000: 0%
– £125,001 to £250,000: 2%
– £250,001 to £925,000: 5%
– £925,001 to £1.5 million: 10%
– Above £1.5 million: 12%

Additional rates may apply for properties classified as second homes or buy-to-let investments. The rates for commercial properties can differ.

It’s important to note that SDLT rates and thresholds are subject to change, so it’s recommended to consult the official UK government sources or seek professional advice to ensure you have the most up-to-date and accurate information regarding stamp duty.

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