This calculator has been updated for the 23 September stamp duty land tax updates, and is valid for purchases in England, Northern Ireland, and Wales.
Stamp Duty in the UK
What is stamp duty land tax?
When you buy a home over a certain threshold you will have to pay stamp duty land tax to the government. That stamp duty threshold changes depending on where you buy your new home, and under what conditions.
For instance if you are buying a home that you will be living in, that is to say this is not a second home but your primary residence, then the threshold is £250,000 as of the 23 September 2022. This is up from the previous threshold of £125,000. If you are a first time buyer however, the threshold is higher at £425,000. Under those circumstances you will pay no stamp duty land tax at all in England.
If however you are buying a second home, perhaps that you plan to rent, you will pay stamp duty at any value.
Stamp duty can become a high figure, and so it is important that you understand enough about your circumstance and how it affects stamp duty, and get an idea of your stamp duty while thinking about your mortgage, or your budget. The full amount for stamp duty must be with your conveyancer between exchange and completion as they undertake to pay this on your behalf. If it is not paid on time, like any tax payment there will be interest added and fines due by you the customer.
Your conveyancer completes the SDLT form (Stamp Duty Land Tax) and submits this with your payment. The certificate received is then put with you application for registration.
The tax is different from country to country:
- In Scotland you pay Land and Buildings Transaction Tax
- In Wales you pay Land Transaction Tax
You pay the stamp duty when:
- you buy a freehold property
- you buy a leasehold
- you buy a property through shared ownership
- for example, you buy with a mortgage or you buy a share in a house
How is stamp duty land tax calculated?
Stamp duty is calculated in bands or portions. That is to say that you will pay an amount for the first portion of your purchase price, then another amount for the next portion and so on. For instance, if you are buying the house that you will be living in and you do not own any other property you will pay:
| Property value | SDLT rate |
|---|---|
| Up to £250,000 | Zero |
| The portion from £250,000 to £925,000 | 5% of the portion |
| The portion from £925,001 to £1,500,000 | 10% of the portion |
| The remaining portion above £1,500,000 | 12% of the portion |
For example, if you buy a property for £295,000, you will pay:
- Zero on the first £250,000
- 5% on the £45,000 above £250,000
- So your total stamp duty land tax will be £0 + £2,250 = £2,250
First time buyers
First time buyers are given some relief in that their threshold is higher, at £425,000. Which means that on a property below that value they will not pay stamp duty. Above £425,000 the government says that they will pay 5% until a maximum relief of £625,000. After which they will pay normal rates again. For the vast majority of people this means that they will just pay 5% on the portion between £425,000 and £925,000, as the normal bracket to £925,000 is 5% already.
| Property value (first time buyers) | SDLT rate |
|---|---|
| Up to £425,000 | Zero |
| The portion from £425,000 to £925,000 | 5% of the portion |
| The portion from £925,001 to £1,500,000 | 10% of the portion |
| The remaining portion above £1,500,000 | 12% of the portion |
Additional homes and buy-to-let
For people buying a second home there is no portion of their property value for which they pay no tax. All portions are boosted by 3%, meaning that you can expect to pay:
| Property value (additional home) | SDLT rate |
|---|---|
| Up to £250,000 | 3% of the portion |
| The portion from £250,000 to £925,000 | 8% of the portion |
| The portion from £925,001 to £1,500,000 | 13% of the portion |
| The remaining portion above £1,500,000 | 15% of the portion |
Do your particular criteria not fit into these examples?
If you are buying in Wales or some other criteria, and you want to get a full explanation, feel free to call us or visit the government site at https://www.gov.uk/stamp-duty-land-tax/residential-property-rates.