How much tax will you have to pay when buying a property in the UK?
I am a first-time buyerProperty is a buy to let or second home
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
*Updated Dec 1st 2017
What is Stamp Duty and how is it calculated?
'Stamp Duty Land Tax' (SDLT) is a tax due when buying property and land in England, Northern Ireland and Wales if the property is over £125,000 (separate Land and Buildings Transaction Tax in Scotland). 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).
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% |
What rate will I have to pay if I am a first-time buyer buying a property worth up to £500,000?
If you're a first-time buyer and not buying a property worth more than £500,000 then you will not have to pay a penny in stamp duty on the first £300,000 and then just 5% of any proportion above £300,000 but below £500,000.
The following is a breakdown:
| Purchase price | Rate on first property |
|---|---|
| Up to £300,000 | 0% |
| £300,000.01 – £500,000 | 5% |
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.
Will Stamp Duty change?
Stamp duty laws have been known to change every few years. Always check with your agent 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!