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Advice on Stamp Duty Land Tax In Northern Ireland

Stamp Duty Land Tax is a percentage paid on the purchase of a home or non-residential property to the Inland Revenue.

How Stamp duty is calculated

Stamp Duty is worked out as a percentage of the whole value of the property, and the percentage rate payable is graded into bands as follows:

  • 0% on properties between £0 - £125,000
  • 1% on properties between £125,000 and £250,000
  • 3% on properties between £250,000 and £500,000
  • 4% on properties between £500,000 and £1,000,000
  • 5% on properties between £1,000,000 and £2,000,000
  • 7% on properties over £2,000,000 

E.g. If you are buying a property at £140,000 you will have to pay stamp duty land tax of £1,400 i.e. 1% of the purchase price.

Exemption for properties in 'Disadvantaged areas'

Exemption for properties in 'Disadvantaged areas'
Disadvantaged Areas stamp duty relief applies to properties under £150,000 in areas designated by the government as 'disadvantaged'. The bands used for properties in disadvantaged areas are as follows:

Residential property value SDLT rate
Up to £150,000
Zero
Over £150,000 to £250,000
1%
Over £250,000 to £500,000
3%
Over £500,000 to £1,000,000 4%
Over £1,000,000 to £2,000,000 5%
Over £2,000,000 7%


Disadvantaged areas are based on local government wards and electoral divisions. To check if the property you are purchasing lies in a disadvantaged area you can use a postcode search tool on the HM Revenue & Customs (HMRC) website by clicking below:

Go to the disadvantaged areas postcode search tool

If the property is not shown as being in a disadvantaged area it can also be checked against the list of qualifying areas if you think it should be exempt.

Payment of Stamp Duty or claiming relief

Stamp duty is payable upon completion of the purchase of a property and your solicitor will have previously asked you to complete and sign an SDLT return. A return is completed even if you are eligible for stamp duty exemption and your solicitor will assist you with the completion of these forms, and will deal with the formalities of payment and lodging the forms.

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