It is payable by the purchaser of the property whether it be an individual, partner or a limited company.
There are several rate bands for Stamp Duty. The tax is calculated on the part of the property purchase price falling within each band. A table summarising this is shown to the left of the screen.
Purchase Of Property By First Time Buyer
If you are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:
Purchase Of Main Home (Not First Time Buyer)
If you buy a house for £350,000, the Stamp Duty Land Tax you owe is calculated as follows under the standard rates of stamp duty:
Purchase Of A Second Or More Homes
If you are buying an additional property, such as a second home you will have to pay an extra 3% in Stamp Duty on top of the standard rates - these are also known as higher rates of stamp duty.
These higher rates only apply to properties bought for £40,000 or more.
If you buy a second house for £300,000, the Stamp Duty Land Tax you owe is calculated as follows under the higher rates of stamp duty:
If the second home your purchased was for under £40,000, no stamp duty would be payable.
There may be circumstances where Stamp Duty may not be payable. Some examples might include:
You must tell HMRC about most England and Northern Ireland land and property transactions using a Stamp Duty Land Tax (SDLT) return. This must be within 14 days of the ‘effective date’ of the transaction, even if you do not owe any tax. The effective date is normally the date of completion.
The filing or reporting date is also the date the stamp duty is paid over to HMRC.
The filing of the stamp duty returns, and payment off any tax is generally performed by the buyers' solicitors however it can be filed by the buyer themselves by completing a paper SDLT1 return. The paper return can be ordered from HMRC online or by phone.
Companies will not get the first-time buyer reliefs available to individuals on the first property purchased. The rates of stamp duty will be chargeable at the higher rates and apply to all property purchases of £40,000 or more.