Based on a property / land value of , there will be Stamp Duty due.
| Band | Rate | Due |
|---|---|---|
| Up to £125,000 | 0% | £0 |
| Above £125,000 to £250,000 | 2% | |
| Above £250,000 to £925,000 | 5% | |
| Above £925,000 to £1,500,000 | 10% | |
| Above £1,500,000 | 12% | |
| Total | {{model.effective}}% | Stamp Duty due |
| Band | Rate | Due |
|---|---|---|
| Up to £300,000 | 0% | |
| Above £300,000.01 to £500,000 | 5% | |
| Total | {{model.effective}}% | Stamp Duty due |
*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, there has been another change so read on for more details.
What changed on 8th July 2020?
The government has temporarily increased the stamp duty threshold to £500,000 for property sales in England and Northern Ireland, until 31 March 2021.
Anyone completing on a main residence costing up to £500,000 between 8 July and 31 March will not pay any stamp duty, and more expensive properties will only be taxed on their value above that amount.
This will save buyers as much as £15,000, if they are buying a property of £500,000 or more.
The following is a breakdown:
| Property price | Standard rate | Buy-to-let/second home rate |
|---|---|---|
| Up to £500,000 | 0% | 3% |
| £500,001 - £925,000 | 5% | 8% |
| £925,001 - £1.5m | 10% | 13% |
| £1.5m + | 12% | 15% |
What rate will I have to pay if I am a first-time buyer buying a property worth up to £500,000?
How do I pay Stamp Duty?
Typically, your Solicitor will assist you with Stamp Duty payments.
How to calculate the new Stamp Duty rate?
Our calculator above calculates the exact amount of stamp duty you will need to pay on your property and even shows you how it’s been calculated.
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 will Stamp Duty change back?
The Chancellor announced that you have up until March 31st 2021 to complete on your purchase. Regardless of whereabouts you are in the purchase process and even if you have exchanged contracts, if you haven’t completed by this date you will pay the Stamp Duty based on the calculations prior to 7th July.
It's expected that the Stamp Duty rates will switch back to what they were before 8th July 2020. 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% |
| over £1.5m | 12% | 15% |
Always check with your solicitor before you buy and ensure you know the latest legislation.
Need some more help with working out how much tax you'll need to pay? Get in touch today for a call back!