Every buyer of property or land in either England or Northern Ireland must pay the Stamp Duty Land Tax (SDLT) over a certain price threshold. However, if the land or property is in Scotland, buyers will pay the land and buildings tax and in Wales, the buyer will pay the land transaction tax.
The tax applies when you:
· Buy a freehold property
· Buy a new or existing leasehold
· Buy a property through the shared ownership scheme
· Are transferred land or property in exchange for a payment, e.g., taking on a mortgage or buying a share in a house.
What are the thresholds?
From the 1st July 2021 the stamp duty rates for residential property and land purchases:
· Below £250,000 – 0%
· £250,001 - £925,000 – 5%