Stamp duty & stamp duty land tax

Stamp Duty

When you buy shares, you usually pay a tax or duty of 0.5% on the transaction. If you buy shares electronically Stamp Duty Reserve Tax (SDRT) is payable. For shares purchased using a stock transfer form, you will pay Stamp Duty if the transaction is over £1,000.

Stamp Duty Land Tax

SDLT is payable on land and property transactions in England, Wales and Northern Ireland.

Property transactions in Scotland are subject to Land and Buildings Transaction Tax.

From April 2018, Land Transaction Tax (LTT) will replace SDLT in Wales.

Residential property

The rates apply to the portion of the total value which falls within each band.

Consideration (£) 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

From April 2016 these rates may be increased by 3% where further residential properties, costing over £40,000, are acquired.

Residential property - first time buyers

Consideration (£) Rate (%)
0 - 300,000 0
300,001 - 500,000 5
Over 500,000 Standard rates apply

Rate (on portion of value above threshold) on or after 22 November 2017 if purchase qualifies for first time buyer relief.

Non-residential property

The rates apply to the portion of the total value which falls within each band.

Consideration (£) Rate (%)
0 - 150,000 0
150,001 - 250,000 2
Over 250,000 5

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