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TAX TIP TUESDAY: Stamp Duty Land Tax – recap and review

Want to save tax this year? Read this week’s short Tax Tip, tailored for UK doctors and dentists to help you save money and get more organised with your tax affairs. Take 5 minutes to have a read.


This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. The Financial Conduct Authority does not regulate tax advice. 


SDLT is making the housing crisis worse

Stamp Duty Land Tax (SDLT) has made it’s way into the headlines again recently, as a YouGov report shows that more than a million pensioners would consider downsizing if they received a SDLT exemption.

SDLT is now being dubbed “the tax on moving” with peers and ministers now encouraging the Chancellor to consider a re-think of the current system in this year’s Autumn Statement. 

Think-tanks believe that the SDLT is making the housing crisis worse, as people choose to stay in their homes rather than fork out high tax costs for downsizing or relocating.

The London School of Economics reported that if SDLT was abolished there could be as much as a 27 percent higher rate of moving home.

This would also enable more families to move to larger homes, and keep the general flow of buying and selling more active.


How much SDLT do you pay now?

This chart shows the variance in SDLT now compared to 25 years ago.

Whilst the new “tiered” system, introduced in 2014, means that those buyings investing in cheaper property under £150,000, do save money, there are unfortunately few properties that fall into this value category these days. Particularly if buying in London and the south of England.

Property valueSDLT nowSDLT 25 years ago
£150,000£500£1,500
£250,000£2,500£2,500
£500,000£15,000£5,000
£750,000£27,500£7,500
£1,000,000£43,750£10,000
£2,500,000£213,750£25,000

SDLT on second homes

Of course, we can’t forget also the SDLT surcharge on second homes, which has been a definite factor in a slump in this area of the property market.

This table gives an indication of SDLT when buying a second home.

Property ValueTax rateSDLT amountSecond home / Buy-to-letTotal SDLT
£0 - £125,0000%£0+3%up to £3,750
£125,001 - £250,0002%£2,500 - £5,000+3%£6,250 - £12,500
250,001+5%12,500++3%£20,000+

Speak to an independent financial adviser when considering property investment, to ensure that it is a viable option for you, taking into account the relevant costs.


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