Last updated: The calculator has been updated to reflect changes in stamp duty following the Mini Budget on 23rd September 2022.
*Properties under £40,000 are not subject to second home SDLT
What is Stamp Duty and how is it calculated?
Stamp duty is a tax paid by people buying property, although it varies slightly across the UK.
- In England and Northern Ireland buyers pay 'Stamp Duty Land Tax' (SDLT).
- In Scotland it's 'Land and Buildings Transaction Tax'.
- In Wales buyers pay 'Land Transaction Tax'.
The amount handed to the government depends on where you are in the UK, and the price of the property.
Stamp duty (SDLT) applies if the property is over £125,000. This tax is also applicable to overseas buyers.
Since 4th December 2014, you only pay the rate of tax on the part of the property price within each tax band.
From April 2016, an additional 3% stamp duty must be paid on second homes and buy-to-let properties. From November 2017, first-time buyers will pay zero stamp duty on the first £300,000 of any home costing up to £500,000 (and only 5% on any proportion between £300k and £500k).
From July 8th 2020, a 'stamp duty holiday' was announced aimed at helping buyers whose finances were affected by Covid and boosting a property market hit by lockdown. See further details below.
What changed on 8th July 2020?
The stamp duty holiday was introduced which increased the stamp duty threshold to £500,000 for property sales in England and Northern Ireland, until 30 June 2021.
This meant anyone (including first-time buyers, buy-to-let and foreign buyers) completing on a main residence costing up to £500,000 between 8th July 2020 and 30th June 2021 had no stamp duty to pay.
The stamp duty holiday came to an end on 30th June 2021 however, until the end of September 2021, there was a staggered return to the previous stamp duty rates. From 1st October 2021, stamp duty returned to normal (pre-Covid).
How do I pay Stamp Duty?
Typically, your Solicitor will assist you with Stamp Duty payments.
When is Stamp Duty paid?
Stamp duty must be paid to the HMRC within 30 days of the date of completion or you may risk a fine. Your solicitor or legal adviser should take care of this for you and ensure you don't miss the deadline.
When did the stamp duty holiday end?
From 1st October 2021, stamp duty rates are back to what they were pre-Covid.
The following is a breakdown:
|Property price||Standard rate||Buy-to-let/second home rate|
|Up to £125,000||0%||3%|
|£125,001 - £250,000||2%||5%|
|£250,001 - £925,000||5%||8%|
|£925,001 - £1.5m||10%||13%|
Always check with your solicitor before you buy and ensure you know the latest legislation.