2022 SDLT Rates In The UK – What Has Changed?

Over the past few years during the Covid-19 pandemic Stamp Duty Land Tax rates changed multiple times. This guide will help make it clear what the current SDLT rates are and let you know of any changes that have occurred this year.

What’s changed in 2022?

The current rates were set in October 2021 and so far this year the chancellor hasn’t made any changes to them.

What are the current standard rates on residential property?

The current standard rate of SDLT in 2022 is 2%, although there are some circumstances in which a reduced rate may apply. 

The current 2022 SDLT rates for residential property are as follows:

– Up to £125,000: 0%

– £125,001 to £250,000: 2%

– £250,001 to £925,000: 5%

– £925,001 to £1.5 million: 10%

– Above £1.5 million: 12%

Therefore if your property costs £350,000 then you pay 0% on the first £125,000, and 2% on the remaining £225,000.

What are the SDLT rates for first time buyers?

First time buyers are subject to different SDLT rates to help them onto the property ladder.

The current first time buyer 2022 SDLT rates for residential property are as follows:

– Up to £300,000: 0%

– £300,001 to £500,000: 5%

Meaning if you purchase a property for £400,000 you pay 0% on the first £300,000 and then 5% on the remaining £100,000.

If the property you are purchasing is over £500,000 then you don’t qualify for first time buyer relief and the normal SDLT rates apply to your purchase.

What are the rates for second properties?

If you already own property and you purchase an additional property there is a 3% surcharge on top of the normal SDLT rates.

So even if the property you purchase is under the £125,000 threshold you are still liable to pay 3%.

If you intend to live in the new property and sell your existing property but your initial property hasn’t sold upon the day of completion then you are eligible to apply for a refund within 36 months.

What are the rates for non-residential properties?

The rates for residential and non-residential properties are different the current SDLT rates for non-residential properties are as follows:

– Up to £150,000: 0%

– £150,001 to £250,000: 2%

– £250,001 to £500,000: 5%

– £500,000 and over: 10%

Get expert advice so you don’t overpay

It’s important to keep up to date with changes that occur so you don’t overpay or miss out on relief that you are owed. The team at Cap Ex are tax experts and are happy to help you with your tax concerns so get in touch today.

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