Do you pay tax on land you own UK?

You must pay Stamp Duty Land Tax ( SDLT ) if you buy a property or land over a certain price in England and Northern Ireland. The tax is different if the property or land is in: Scotland - pay Land and Buildings Transaction Tax. Wales - pay Land Transaction Tax if the sale was completed on or after 1 April 2018.

gov.uk - Stamp Duty Land Tax: Overview - GOV.UK

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You must pay Stamp Duty Land Tax ( SDLT ) if you buy a property or land over a certain price in England and Northern Ireland.

The tax is different if the property or land is in:

Scotland - pay Land and Buildings Transaction Tax

Wales - pay Land Transaction Tax if the sale was completed on or after 1 April 2018

You pay the tax when you:

buy a freehold property

buy a new or existing leasehold

buy a property through a shared ownership scheme

are transferred land or property in exchange for payment, for example you take on a mortgage or buy a share in a house

Thresholds

The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there’s no SDLT to pay.

The current SDLT thresholds are:

£250,000 for residential properties

£425,000 for first-time buyers buying a residential property worth £625,000 or less

£150,000 for non-residential land and properties

There were different thresholds and rates for residential properties before 23 September 2022.

How much you pay

How much you pay depends on:

whether the land or property will be used as a residential property or as a non-residential or mixed-use property

whether you are eligible for relief or an exemption

For example, if you’re buying a residential property there are different rates of SDLT if:

you’re a first-time buyer

you already own a property and you’re buying an additional property

you’re not a UK resident

You can use HM Revenue and Customs’ ( HMRC ) Stamp Duty Land Tax calculator to work out how much tax you’ll pay.

The value you pay SDLT on (the ‘consideration’)

The total value you pay SDLT on (sometimes called the ‘consideration’) is usually the price you pay for the property or land.

Sometimes it might include another type of payment like:

goods

works or services

release from a debt

transfer of a debt, including the value of any outstanding mortgage

Find out how to work out the consideration if your situation is complicated.

How and when to pay

Send an SDLT return to HMRC and pay the tax within 14 days of completion. If you have a solicitor, agent or conveyancer, they’ll usually file your return and pay the tax on your behalf on the day of completion. They’ll then add the tax to their fees. If they do not do this for you, you can file a return and pay the tax yourself.

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