Last updated: The calculators have been updated following the end of the stamp duty holiday on 30th June 2021. Until the end of September 2021, it represents a staggered return to previous rates.
*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 has 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 and 30th June 2021 had no stamp duty to pay.
The stamp duty holiday comes to an end on 30th June 2021.
After this date, until the end of September, there will be a staggered return to the previous stamp duty rates.
It means you won't pay any stamp duty on the first £250,000 of the purchase price.
After 30th June, what rate will I have to pay if I am a first-time buyer buying a property worth up to £250,000?
If you're a first-time buyer and buying a property worth less than £250,000 then you will not have to pay a penny in stamp duty. This is applicable from 30th June 2021 until the end of September.
See the calculator above to work out any stamp duty based on current rates.
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 does the stamp duty holiday end?
From 1st October 2021, stamp duty rates are due to return to normal.
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 some no-obligation advice.