Stamp duty on shares
Buying shares usually attracts a 0.5% charge. Electronic purchases are subject to Stamp Duty Reserve Tax. Shares bought using a stock transfer form attract Stamp Duty if the transaction exceeds £1,000.
SDLT: England and Northern Ireland
Residential property
| Price band | Rate |
|---|---|
| £0 – £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| £1,500,001 and above | 12% |
Rates may rise by 5 percentage points where further residential properties costing over £40,000 are bought.
First-time buyer relief
| Price band | Rate |
|---|---|
| £0 – £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| Purchases over £500,000 | Normal rates apply |
Non-residential property
| Price band | Rate |
|---|---|
| £0 – £150,000 | 0% |
| £150,001 – £250,000 | 2% |
| Over £250,000 | 5% |
LBTT: Scotland
Residential property
| Price band | Rate |
|---|---|
| £0 – £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| £750,001 and above | 12% |
Non-residential property
| Price band | Rate |
|---|---|
| £0 – £150,000 | 0% |
| £150,001 – £250,000 | 1% |
| Over £250,000 | 5% |
LTT: Wales
Residential property
| Price band | Rate |
|---|---|
| £0 – £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1,500,000 | 10% |
| £1,500,001 and above | 12% |
Higher residential rates
| Price band | Rate |
|---|---|
| £0 – £180,000 | 5% |
| £180,001 – £250,000 | 8.5% |
| £250,001 – £400,000 | 10% |
| £400,001 – £750,000 | 12.5% |
| £750,001 – £1,500,000 | 15% |
| £1,500,001 and above | 17% |
Non-residential property
| Price band | Rate |
|---|---|
| £0 – £225,000 | 0% |
| £225,001 – £250,000 | 1% |
| £250,001 – £1,000,000 | 5% |
| Over £1,000,000 | 6% |
How to pay
An SDLT return and any tax due must be submitted within 14 days of completion. Your solicitor usually calculates and files it, but you remain legally responsible. Keep a copy of the return and proof of payment.
Frequently Asked Questions
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Who has to Pay SDLT?
Anyone buying residential or non-residential property above the threshold has to pay Stamp Duty Land Tax in England and Northern Ireland. This includes homebuyers, landlords, companies and investors. Scotland and Wales have their own equivalent taxes, LBTT and LTT. Your solicitor usually works out and files the return, but you remain legally responsible for making sure it is correct and paid on time.
How Is It Calculated?
SDLT is calculated in bands. Each rate applies only to the part of the purchase price that falls within that band, rather than to the whole price. For example, on a residential purchase the first £125,000 is taxed at 0%, the next slice up to £250,000 at 2%, and so on. Because the bands add up, the final bill is usually lower than people expect. We can work out the figure for you before you commit to a purchase.
When Must It Be Paid?
An SDLT return and any tax due must be submitted within 14 days of completion. Your solicitor usually handles this on your behalf. It is sensible to keep a copy of the return and proof of payment for your records. If you are buying without a solicitor, make sure you allow enough time to prepare the return.
What are the SDLT Rates for Residential Property In England and Northern Ireland?
The rates are 0% on the first £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1,500,000 and 12% above £1,500,000. Rates may rise by 5 percentage points where further residential properties costing over £40,000 are bought. If you are buying an additional property, it is worth checking the extra charge before you proceed.
How Does First-Time Buyer Relief Work?
First-time buyers pay 0% on the first £300,000 and 5% on the portion between £300,001 and £500,000. If the purchase price is over £500,000, the relief does not apply and the normal rates are used. Checking your eligibility before you exchange contracts helps you plan your costs accurately.
What are the SDLT Rates for Non-Residential Property?
For non-residential property in England and Northern Ireland, the rates are 0% on the first £150,000, 2% on the portion from £150,001 to £250,000 and 5% on anything above £250,000. These rates apply to purchases such as shops, offices and commercial land. Because each rate only applies to the slice within its band, the total tax is built up gradually.
How Do Property Taxes Differ In Scotland and Wales?
Scotland uses Land and Buildings Transaction Tax (LBTT), and Wales uses Land Transaction Tax (LTT). Both have their own bands and rates, which are different from SDLT. For example, residential LBTT starts charging above £145,000, while residential LTT starts above £225,000. Wales also has higher residential rates for additional properties. Make sure you use the right tax for the location of the property.
Is Stamp Duty Charged When Buying Shares?
Yes. Buying shares usually attracts a 0.5% charge. Electronic purchases are subject to Stamp Duty Reserve Tax, and shares bought using a stock transfer form attract Stamp Duty if the transaction exceeds £1,000. The charge is normally built into the cost of the trade, but it is worth knowing about it when planning investments. We can help you understand how it affects your transactions.