Stamp and property taxes | Baker Tilly Mooney Moore | Belfast

Engalnd and Northern Ireland

Stamp duty land tax

Stamp duty land tax (SDLT) on residential property is charged at different rates depending on the portion of the purchase price that falls within a certain rate band.

Rates are applied only to the portion of the property's value that exceeds the relevant band threshold. 

First-time-buyers

Stamp duty land tax has been abolished for first-time-buyers who buy homes under £300,000. First-time-buyers who purchase a home worth between £300,000 and £500,000 will not pay stamp duty on the first £300,000. They will pay 5% on the price above £300,000 up to £500,000 and the normal rates thereafter.

Stamp duty land tax on residential properties - based on slices of value

Higher rates of SDLT are charged on purchases of additional residential properties, such as second homes and buy-to-let properties. The higher rates are 3 percentage points above the current SDLT rates:

Cost  Residential * Cost  Non-residential or mixed use
Up to £125,000  0% Up to £150,000  0% 
 £125,001 to £250,000  2% £150,001 to £250,000  2% 
 £250,001 to £925,000  5% Over £250,000  5% 
 £925,001 to £1,500,000  10%    
Over £1,500,000   12%    

First time buyers pay nothing on the first £300,000 and then 5% on the next £200,000. If the property is over £500,000, the rates in the above table apply.

For purchases by companies and other non-natural persons in excess of £500,000 a rate of 15% applies, subject to certain exclusions.

Scotland

Land and buildings transaction tax 

Cost  Residential * Cost  Non-residential or mixed use
Up to £145,000  0% Up to £150,000  0% 
 £145,001 to £250,000  2% £150,001 to £350,000  3% 
 £250,001 to £325,000  5% Over £350,000  4.5% 
 £325,001 to £750,000  10%    
Over £750,000   12%    


Wales 

Land transaction tax from 1 April 2018

Cost  Residential * Cost  Non-residential or mixed use
Up to £180,000  0% Up to £150,000  0% 
 £180,001 to £250,000  3.5% £150,001 to £250,000  1% 
 £250,001 to £400,000  5% £250,0001 to £1m  5% 
 £400,001 to £750,000  7.5%  Over £1m 6%
£750,000 to £1.5m  10%    
Over £1.5m   12%    

* Additional 3% rate applies to certain second properties over £40,000.

Partnerships

Stamp duty applies to transfers of partnership interests, but the amount payable will not exceed the amount that would have been payable on the value of any shares or securities included in the transfer.

SDLT applies to the transfer of an interest in land into or out of a partnership or the transfer of an interest in a partnership (where the partnership property includes an interest in land). The charge is based on the reported value of the land and the proportionate interest transferred and it applies only to partnerships whose sole or main activity is investing in or dealing in land. There is no longer an SDLT charge on transfers of partnership interests in other partnerships such as professional partnerships, farming partnerships or partnerships carrying on a trade which is not land-related.

New leases

The rates bands and thresholds for rent paid under a lease are:

Net present value of rent Rate
£0-£150,000  0%
 £150,001 - £5,000,000  1%
 £5,000,000 +  2%

Note in Wales the 1% band is from £150,000 to £2 million and then 2% thereafter.