What SDLT rate applies to residential property purchases above £925,000 and up to £1,500,000?

The SDLT (Stamp Duty Land Tax) rate that applies to residential property purchases above £925,000 and up to £1,500,000 is indeed 10%. This bracket is part of the progressive structure of SDLT where different portions of the property's purchase price fall into different tax rates.

For properties costing more than £925,000 but not exceeding £1,500,000, the portion of the purchase price that exceeds £925,000 attracts the 10% rate. In practical terms, this means that if a home were sold for, say, £1,200,000, the SDLT would only apply to the amount over £925,000, which is £275,000. This amount would be taxed at 10%.

Understanding the SDLT structure is crucial as it defines how much buyers are obligated to pay based on the price of the property. This specific rate is designed to ensure that higher-value properties contribute a fairer share toward the tax revenue. Thus, recognizing the correct bracket and corresponding tax rate is essential for anyone involved in property transactions.