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Money, tax and benefits

Money, tax and benefits

Stamp Duty

Stamp Duty is the tax you pay when you buy property or shares. You pay 'Stamp Duty Land Tax' when you buy property and either 'Stamp Duty' or 'Stamp Duty Reserve Tax' when you buy shares.

Stamp Duty Land Tax when you buy property

New thresholds introduced from 3 September 2008 mean that if you buy property and the purchase price is £175,000 or less you don't pay any Stamp Duty Land Tax at all.

If it's more than £175,000, you pay between one and four per cent of the whole purchase price. The £175,000 threshold (up from £125,000) will remain in place up to and including 2 September 2009.


Residential property - purchase price Rate of Stamp Duty Land Tax
up to £175,000 (until 2 September 2009 inclusive) 0%
£175,001 - £250,000 1%
£250,001 - £500,000 3%
£500,001 or more 4%

Property in disadvantaged areas

Properties bought in areas designated by the government as ‘disadvantaged’ have historically qualified for Disadvantaged Area Relief (whereby the SDLT threshold was higher than for other residential properties). This relief will not apply for property purchases between 3 September 2008 and 2 September 2009 inclusive.

Instead the Stamp Duty Land Tax threshold will be the same as for all other property as shown above. The new threshold is higher than the previous Disadvantage Area Relief threshold of £150,000.

To find out more about Stamp Duty Land Tax, including how you pay it and a link to HM Revenue & Customs' Stamp Duty Land Tax calculator, read our article 'Tax on buying property'.

Stamp Duty or Stamp Duty Reserve Tax when you buy shares

You pay Stamp Duty or Stamp Duty Reserve Tax at the rate of 0.5 per cent when you buy shares:

  • 'Stamp Duty' is payable when the shares are transferred to you using a stock transfer form
  • 'Stamp Duty Reserve Tax' is payable when the shares are transferred to you electronically without using a stock transfer form

You pay a higher rate of 1.5 per cent when you transfer shares into a 'depositary receipt scheme' or a 'clearance service'. These are special arrangements where the shares are held by a third party.

For full details, including how you pay and a link to HM Revenue & Customs' Stamp Duty calculator, read our related article 'Tax on buying shares'.

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