Stamp Duty Land Tax and reliefs

Stamp Duty Land Tax (SDLT) is paid when you buy a property or land over a certain price in England, Wales and Northern Ireland. The threshold is currently £125,000 for residential properties and £150,000 for non-residential land and properties.

SDLT has traditionally been paid at a single slab rate on the whole purchase price, resulting in big jumps in the amount levied when the value tipped into a new band. From 4 December 2014, the SDLT regime for residential property was reformed, which means that now:

  • there is no tax on the first £125,000 paid
  • two per cent tax is paid on the portion up to £250,000
  • five per cent tax is paid on the portion up to £925,000
  • ten per cent tax is paid on the portion up to £1.5 million
  • 12 per cent is paid on everything above £1.5 million.

While the new system offers substantial tax savings on residential properties valued at up to £937,000, there are various SDLT reliefs available that can further enhance tax efficiency on land and property transactions.

Milsted Langdon Chartered Accountants in Bath, Bristol, London, Taunton and Yeovil can assist with the pre-planning and structuring of transactions to maximise the value any appropriate reliefs. Transactions that qualify for reliefs, subject to certain conditions being met, include:

  • the purchase of multiple dwellings
  • when a construction company or property developer buys a home from someone who is buying a new home from them
  • an employer buys an individual’s house because they are moving for work
  • transfers of property between companies in a group
  • Right to Buy property purchases
  • purchases of property by charities.

For more information on how our chartered accountants can assist with property tax in Bath, Bristol, London, Taunton and Yeovil, please contact us.