Stamp Duty Calculator
Calculate stamp duty in England and Northern Ireland with our instant stamp duty calculator.
| Effective Rate | 0% |
|---|
| Tax Band | % | Taxable Sum | Tax |
|---|---|---|---|
| Less than £125k | 0 | £0 | £0 |
| £125k to £250k | 2 | £0 | £0 |
| £250k to £925k | 5 | £0 | £0 |
| £925k to £1.5m | 10 | £0 | £0 |
| Rest over £1.5m | 12 | £0 | £0 |
How To Calculate Stamp Duty
Our stamp duty calculator will assist you in calculating how much stamp duty you will need to pay on any properties you purchase. Stamp Duty Land Tax (SDLT) is a levy imposed on property purchases in England and Northern Ireland. SDLT is a proportional tax and levied at various rates, depending on a property’s purchase price. There are a variety of tax bands for stamp duty with rates growing steadily from lower to higher levels.
When you move home or sell a property investment, a stamp duty refund may be available. The refund can be received online or by mail and must be requested after the property has been sold.
What Are The Stamp Duty Rates For 2023?
The freehold duty rates for residential stamps in England and Northern Ireland are as follows:
Tax Band | Normal Rate | Additional Property |
less than £125k | 0% | 3% |
£125k to £250k | 2% | 5% |
£250k to £925k | 5% | 8% |
£925k to £1.5m | 10% | 13% |
rest over £1.5m | 12% | 15% |
An additional property purchased for less than £40k would trigger a tax of 0%. The SDLT limit would be 3% on the total purchase price for sales from £40k to £125k. The above SDLT rates refer to residential freehold transactions made in England and Northern Ireland.
How To Calculate Stamp Duty For Buy To Let & Second Homes?
Stamp duty rates for someone who purchases an additional property has increased. A 3% surcharge has been added in addition to the usual SDLT rate. This has been in place since April 2016.
The higher level of stamp duty applies only to additional residential real estate. Other forms of land are usually not considered for stamp duty purposes when taking possession of an additional property.
Calculating Stamp Duty Rates When Replacing Your Main Residence
The higher stamp duty rates do not apply while you are moving home. Standard stamp duty rates would apply to someone who replaces a principal residence even though they own two properties in the short term.
When a former home is not sold immediately, the higher rate of the stamp duty would be determined, and a refund will be sought later.
Stamp duty refunds may be received up to 12 months after a previous home has been sold as long as the old house is sold within three years of buying the new one.
Stampy Duty Calculation For First Time Buyers
Among first time buyers, the initial stamp duty rate has increased to £300,000. This means that most first-time buyers won’t pay any stamp duty any more. Unless of course, they have the means available to purchase a higher valued property.
Further stamp duty exemption is available on transactions of up to £500,000 to support first time buyers in more expensive places like London. The extra first-time buyer aid is available in all areas throughout England and Northern Ireland for first-time property transactions.
When Do You Have To Pay The Stamp Duty?
Stamp duty has to be paid on a property purchase within 14 days of completion. The 14 day return period for the payment of stamp duty was valid from March 2019 and was reduced from 30 days down to just two weeks.
The shortened timeframe will not, in fact, have a significant effect on individuals. This is because most SDLT returns are sent by a solicitor or conveyancer working on behalf of the client.
Stamp Duty Changes
In December 2014 significant changes were made to the stamp duty. The old stamp duty system was called a “slab tax,” whereby rates were increased at each SDLT threshold and extended to the entire purchase price of the property.
Since 2014, the stamp duty has been “progressive,” and rate changes between stamp duty rates are applied, not to the final sales price.
The new stamp duty scheme was further updated in November 2017 when the Government implemented first-time buyer relief.
How To Calculate Stamp Duty For Non-UK residents?
The 2020 Budget proposed an increase in stamp duty for people outside the UK.
In April 2021, if they purchase a home in England or Northern Ireland, anyone residing abroad must pay an extra 2 per cent in stamp duty.
The surcharge will extend to someone who is a non-UK tax resident like British Expats employed and living abroad. This rise ensures that the highest stamp duty rate will now be 17% on purchases.
The stamp duty surcharge will help to take some heat off the property market in London where foreign investment is high. The surcharge is expected to help manage house price inflation and assist UK homeowners looking to get on and step up the housing ladder.
The Government plans to use the extra stamp duty income to provide displaced people with new homes.
Stamp Duty Revenue
Over the past 40 years, stamp duty sales have typically been on an upward trend. Stamp duty receipts continued to grow in the aftermath of the comprehensive stamp duty reform in 2014.
Stamp duty produced about £12.9 billion for the Government in 2017/18, but in 2018/2019 this dropped to around £ 11.9. First-time buyer relief and housing sector volatility are two factors that have created the fall in stamp duty revenues.
Despite some recent studies suggesting that the stamp duty may hurt the housing market, SDLT remains a significant form of taxation for the Treasury.
We hope this gives you a better insight into stamp duty fees and payments in the UK, and we hope the stamp duty calculator helps with your next house purchase or sale.