Stamp Duty Calculator – 2021 Update

How much Stamp Duty Land Tax (SDLT) you will pay on your home. When you will need to pay it. Find out with our Stamp Duty Calculator. Includes 2021 Update

Note: SDLT is subject to special measures during the COCID-19 pandemic.

Stamp duty calculator

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What is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax (SDLT) is a tax payable to HMRC on property and land purchases. Unless you are a first-time buyer meeting certain criteria, you will be required to pay it if you buy a residential property in England or Northern Ireland for more than the prevailing threshold.

In Scotland, you pay Land and Buildings Transaction Tax, and in Wales Land Transaction Tax.

How is Stamp Duty calculated?

Stamp Duty is calculated in increasing percentages on the amount that the sale price exceeds the prevailing threshold.

Stamp Duty is currently subject to special measures in light of the COVID-19 pandemic. The amount payable will be calulated based on the purchase completion date.

Stamp Duty rates are as follows:

Purchases completing between 8 July 2020 to 30 June 2021

Stamp Duty bracket Standard rate
Up to £500,000 0%
The next £500,001 - £925,000 5%
The next £925,001 - £1.5m 10%
The amount over £1.5m 12%

See calculation example:

As an example, if you were to buy a property worth £600,000 you would pay £5,000 in Stamp Duty:

  • 0% on the first £500,000 (£0)
  • 5% on the next £100,000 (£5,000)

Purchases completing between 1 July 2021 to 30 September 2021

Stamp Duty bracket Standard rate
Up to £250,000 0%
The next £250,001 - £925,000 5%
The next £925,001 - £1.5m 10%
The amount over £1.5m 12%

See calculation example:

As an example, if you were to buy a property worth £600,000 you would pay £17,500 in Stamp Duty:

  • 0% on the first £250,000 (£0)
  • 5% on the next £350,000 (£17,500)

Purchases completing from 1 October 2021

Stamp Duty bracket Standard rate
Up to £125,000 0%
The next £125,001 - £250,000 2%
The next £250,001 - £925,000 5%
The next £925,001 - £1.5m 10%
The amount over £1.5m 12%

See calculation example:

As an example, if you were to buy a property worth £600,000 you would pay £20,000 in Stamp Duty:

  • 0% on the first £125,000 (£0)
  • 2% on the next £125,000 (£2,500)
  • 5% on the next £350,000 (£17,500)

Use our Stamp Duty Land Tax Calculator to see how much you will need to pay.

Read more

How much stamp duty do I pay on a buy-to-let property?

Stamp Duty for first-time buyers

As a first-time buyer, you will be able to claim SDLT Relief if your purchase completes on or after 1 July 2021 as follows:

Stamp Duty bracket First-time buyer rate
Up to £300,000 0%
£300,001 - £500,000 5%
over £500,001 As per the standard rate

See calculation example:

As an example, if you were to buy a property worth £600,000 on or after 1 July 2021, you would pay £15,000 in Stamp Duty:

  • 0% on the first £300,000 (£0)
  • 5% on the next £300,000 (£15,000)

Read more:

Stamp Duty relief for first-time buyers

Stamp Duty on second homes

If you are buying a second home (or any additional properties) worth more than £40,000 you will have to pay a 3% surcharge o top of the standard SDLT rate.

The rates apply to any second home including buy to let and holiday homes. If you already own a property abroad and subsequently purchase a second property in England, you will still have to pay the 3% surcharge.

When do I have to pay Stamp Duty?

Once you have completed your purchase, you have 30 days in which to pay any Stamp Duty you owe. If the purchase price was over £40,000, a Stamp Duty Land Tax return must be submitted to HMRC, even if no Stamp Duty is payable. Your solicitor will usually complete the return for you as well as organising the payment.

The amount of Stamp Duty will be charged as a disbursement and factored into the completion costs on completion of your purchase.

If you fail to pay what you owe, you could face a penalty and incur interest charges.

Are any properties exempt from Stamp Duty?

There are a few scenarios where you don't have to pay Stamp Duty or submit an SDLT return to HMRC:

  • Property is transferred to you but no payment changed hands
  • A property has been left to you in a will
  • A property has been transferred as the result of divorce, or the breakup of a civil partnership
  • The property you’re buying is worth less than £40,000.

If you are unsure as to whether you owe Stamp Duty or not, check with your conveyancing solicitor.

Other points to consider…

  • If you are purchasing a new build property, some developers may offer to pay your Stamp Duty for you as an incentive.
  • Non-residential properties and land attract different rates of Stamp Duty (See Gov.uk).
  • If you buy a property to move into before your first home has sold, you will pay more Stamp Duty on the two properties but you can get a refund if you sell the first property within 36 months.

Your next step

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Gaynor Haliday, Legal researcher

Author:
Gaynor Haliday, Legal researcher