Stamp Duty Calculator

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Find out how much Stamp Duty Land Tax (SDLT) you will have to pay on your home with our 2022 Stamp Duty Calculator.

Stamp Duty Calculator

See also:

Calculate Land Transaction Tax on a residential property in Wales

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 percentage brackets on the purchase price of the property:

Stamp Duty bracket SDLT % 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%

Example:

If you purchase a residential property for £600,000 you would pay £20,000 SDLT, calculated as follows:

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

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 (pay no Stamp Duty) as follows:

Stamp Duty bracket First-time buyer rate
Up to £300,000 0%
£300,001 - £500,000 5%
over £500,001 If the purchase price exceeds £500,000, you will not be able to claim SDLT relief. SDLT will be charged as per the standard rate.

Example 1:

If you purchase a property for £400,000, you would pay £5,000 Stamp Duty, calculated as follows:

  • 0% on the first £300,000 (£0)
  • 5% on the next £100,000 (£5,000)

Example 2:

If you purchase a property for £600,000, you would pay £20,000 Stamp Duty, calculated as follows:

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

Read more:

Stamp Duty relief for first-time buyers

Stamp Duty on second homes

If you buy a second home (or any additional properties) you will have to pay a 3% surcharge in addition to the standard SDLT rate.

Stamp Duty rates are as follows:

Stamp Duty bracket SDLT % rate
Up to £125,000 3%
The next £125,001 - £250,000 5%
The next £250,001 - £925,000 8%
The next £925,001 - £1.5m 13%
The amount over £1.5m 15%

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.

Example:

If you purchase a second home for £600,000 you would pay £38,000 SDLT, calculated as follows:

  • 3% on the first £125,000 (£3,750)
  • 5% on the next £125,000 (£6,250)
  • 8% on the next £350,000 (£28,000)

Stamp Duty - Non-UK residents

Overseas buyers pay an additional 2% SDLT surcharge when buying a residential property in England and Northern Ireland.

The surcharge is payable, regardless of whether company or individual) subject to a few exceptions for specific collective investment vehicles such as REITs.

The surcharge is also payable in addition to the 3% second home surcharge.

Example 1:

If you purchase a property for £600,000 as an overseas buyer, you would pay £32,000 Stamp Duty, calculated as follows:

  • 2% on the first £125,000 (£2,500)
  • 4% on the next £125,000 (£5,000)
  • 7% on the next £350,000 (£24,500)

Example 2:

If you purchase a second property for £600,000 as an overseas buyer, you would pay £50,000 Stamp Duty, calculated as follows:

  • 5% on the first £125,000 (£6,250)
  • 7% on the next £125,000 (£8,750)
  • 10% on the next £350,000 (£35,000)

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 SDLT Return must be submitted to HMRC, even if no Stamp Duty is payable. Your solicitor will usually complete the SDLT Return for you as well as organising the payment.

The amount of SDLT 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.

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Chris Salmon, Director

Author:
Chris Salmon, Director