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Stamp Duty Land Tax (SDLT) can be a cause of concern for prospective property buyers in Teesside. This basic informational guide aims to assist you in understanding your tax obligations when purchasing a residential property in this region of England.

Seek advice from a tax advisor

This guide is for informational purposes only and is not intended as legal or tax advice. We are a firm of property solicitors and, although SDLT is a common conveyancing disbursement, we are not tax advisors and cannot offer tax advice.

We highly recommend that you consult a professional tax adviser for advice tailored to your specific circumstances.

What is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax is a fee charged by HMRC on property or land purchases over a certain threshold. In England, including Teesside, the tax is progressive, meaning different portions of the purchase price are taxed at different rates

Calculating tour Stamp Duty Tax in Teesside

The SDLT payable is not a flat rate on the entire purchase price but is calculated on a sliding scale. For example, if you buy a main residence in Teesside for £500,000 and you are not a first-time buyer, you pay 0% on the first £250,000 and 5% on the remaining £250,000.

Primary residence Stamp Duty rates in Teesside

When purchasing a main residence to live in, the amount of Stamp Duty you pay is determined by the purchase price of the property, segmented into different rate bands:

Purchase price	SDLT Band Rates
Up to £250,000	0%
£250,001 to £925,000	5%
£925,001 to £1.5 million	10%
Above £1.5 million	12%

Stamp Duty Land Tax for first-time buyers in Teesside

Eligible first-time buyers will pay no Stamp Duty on properties costing up to £425,000 and a discounted rate on property purchases up to £625,000.

Stamp Duty on additional properties in Teesside

Purchasing additional properties, such as second homes or buy-to-let investments, incurs higher SDLT rates.

The rates are:

• Up to £250,000: A 5% rate applies, reflecting the government’s aim to moderate the buy-to-let market and ensure first-time buyers have access to affordable homes.
• Above £250,000: The rates for additional properties mirror those of main residences but with a 5% surcharge across all bands. This means the effective rates are 10% (for the portion from £250,001 to £925,000), 15% (from £925,001 to £1.5 million), and 17% (above £1.5 million).

Stamp Duty Land Tax calculator

The UK government has a helpful online Stamp Duty Calculator that can work out the Stamp Duty payable for most transactions.

Visit GOV.UK Calculate Stamp Duty Land Tax to use it.

Non-UK Resident Surcharge

There is a surcharge for non-UK residents, amounting to an additional 2% on top of the standard rates. This is applicable if you spend less than 183 days in the UK in the year preceding your purchase.

Stamp Duty on residential property transactions involving non-natural persons

Stamp Duty is charged at 15% on residential properties costing more than £500,000 bought by certain corporate bodies or “non-natural persons”.

These include:

• Companies
• Partnerships where one or more of the partners is a company
• Collective investment schemes

Relief may be available if the property is:

• Used in a property rental business
• Bought by a property developer or trader
• Used in a trade involving making the property available to the public
• Bought by a financial institution in the course of lending
• Occupied by employees of the purchaser
• A farmhouse
• Bought by a qualifying housing co-operative

The purchasing organisation must meet the conditions that apply for each relief.

The Stamp Duty Land Tax payment process

Timeliness in settling your Stamp Duty is important, with a 14-day window from the date of completion. Your solicitor typically manages this, but understanding your responsibilities is essential to avoid penalties.

Speak with a conveyancer in Teesside

Stamp duty and other disbursements involved in the residential property transaction process can become overwhelming. However, with the right conveyancing solicitor working on your behalf, the process can be much less stressful.

Askews team of solicitors can guide you through each step of the conveyancing process. We offer free initial discussions during which we can explain the process and give you a better idea of the costs involved before you commit to instructing us.

Contact Us to arrange an appointment with a solicitor or visit our Conveyancing Services page to learn more about what we do.

Stamp Duty Land Tax is liable to change

The “Budget of His Majesty’s Government” is an annual budget set by HM Treasury for the following financial year and is funded by revenues such as Stamp Duty Land Tax, collected by HMRC.

Although the rates do not change every year, the Chancellor of the Exchequer could potentially announce changes to the current rate during a Budget statement made to the House of Commons.

Consequently, we will do our best to keep this article up to date. However, please note that the figures included may no longer be accurate. You can find the current rates at GOV.UK SDLT.

This content is for informational purposes and is not intended as advice of any kind.