Do I have to pay Stamp Duty Land Tax (SDLT)?
A: Whether you pay SDLT is dependent upon the purchase or lease value of the property. Currently, on a purchase, if the cost of the property is between £150,000 and £250,000 SDLT is charged on the whole of the purchase price at 1%. Between £250,000 and £500,000 it is 3% of the whole price and above £500,000 it is 4% of the whole price. You should also be aware that if VAT is payable then the SDLT is calculated on the whole amount of the price including the VAT. SDLT is also payable on some leases and this depends on the term of the lease (ie how long the lease is for) and the amount of rent payable each year. Your solicitor will explain if it applies and calculate the likely amount of SDLT at the outset so you know the cost early on. Please note that SDLT is payable by the buyer or the tenant ie by the person taking possession of the property.