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ENGLAND AND NORTHERN IRELAND
Residential SDLT bands.
Each rate applies only to the slice of price inside that band. A £400,000 purchase is not 5% of £400,000.
| Price slice | Standard rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
A £400,000 home with no relief is £0 on the first £125,000, 2% of the next £125,000 (£2,500), and 5% of the remaining £150,000 (£7,500). Total £10,000. First-time buyers pay nothing on the first £300,000 and 5% on the rest, but only if the price is £500,000 or under. At £400,000 that relief cuts the bill to £5,000. At £501,000 the relief disappears and the ordinary table applies to the whole price.
An additional residential property adds 5 percentage points on every slice, which is the same as 5% of the whole price on top of the ordinary bill. A £400,000 additional home is £10,000 plus £20,000. The non-resident surcharge is not in the calculator. Scotland and Wales are different taxes.
Questions
Is the 5% additional rate a flat fee?
It is 5% of the whole consideration, on top of the sliced ordinary rates. It is not a flat fee in pounds.
Do first-time buyers get the relief on a £600,000 home?
No. If the price is over £500,000, first-time buyer relief does not apply at all.
Sources
£600,000, with and without the first-time buyer cliff
Ordinary SDLT on £600,000 is £0 on £125,000, 2% of £125,000 (£2,500), and 5% of the remaining £350,000 (£17,500). The bill is £20,000. A first-time buyer does not get a softer version of that. Because the price is over £500,000, the relief does not apply at all. The bill is still £20,000. At £500,000 exactly, a first-time buyer pays 5% of £200,000, which is £10,000, against a higher ordinary bill. One pound over the cap removes the relief from the whole price.
An additional home adds 5% of the entire price on top of the sliced ordinary tax. On £600,000 that supplement is £30,000, and the ordinary £20,000 is still due.
£275,000, a price inside the ordinary table
Nothing is due on the first £125,000. The next £125,000 is at 2%, which is £2,500. The remaining £25,000 is at 5%, which is £1,250. Ordinary SDLT is £3,750. A first-time buyer at this price, which is under £500,000, pays nothing on £275,000 because the relief covers the first £300,000. The relief is worth the entire £3,750 at this price, and it is worth nothing at £501,000.
An additional property at £275,000 pays the £3,750 plus 5% of £275,000, which is £13,750, so £17,500 in total. That supplement is not limited to the slice above £125,000.