Updated: 7 April 2022
STAMP DUTY
The temporary stamp duty holiday that was introduced due to COVID-19 up to £500,000 ended on the 30th June 2021. This holiday meant there was no stamp duty tax to pay for first-time buyers and home movers on the first £500,000 of their purchase.
The reduction was then staggered from the 1st July until 30th September 2021 with the nil-rate band lowered from £500,000 to £250,000.
From 1st October 2021, The Stamp Duty Land Tax (SDLT) returned to normal levels as below.
The amount of stamp duty tax you’ll need to pay depends on a wide range of factors, including how much you pay for the property, the location of the property, whether you have a UK passport, when you buy and whether you’re a first-time buyer. It also depends on whether you’re buying a main home, a holiday home or an investment property. Use this useful stamp duty calculator to work out how much you will pay.
The Stamp Duty Land Tax (SDLT) is a charge placed on all residential property purchases over £125,000 in England, Wales and Northern Ireland. From April 2016 an additional 3% SDLT surcharge is payable on a second home or buy to let property with a purchase price of £40,000 or above. Please see the chart below for current charges.
If you are a First Time Buyer then as of 22nd November 2017, there is no stamp duty payment due on purchases up to £300,000.
| Property Value | Current Stamp Duty Rate | Rate for BTL and 2nd Properties |
|---|
| Up to £125,000 | 0% | 3% |
| £125,001 to £250,000 | 2% | 5% |
| £250,001 to £925,000 | 5% | 8% |
| £925,001 to £1.5m | 10% | 13% |
| Over £1.5m | 12% | 15% |
How is Stamp Duty (SDLT) calculated ?
Example: If you purchase a property for £275,000, the SDLT you would owe is calculated as follows
| Property Value | Current Stamp Duty Rate | Cost | Rate for BTL and 2nd Properties | Cost |
|---|
| On the First £125k | 0% | £0 | 3% | £3,750 |
| On the next £125k | 2% | £2,500 | 5% | £6,250 |
| On the Final £25k | 5% | £1,250 | 8% | £2,000 |
| Total Stamp Duty | | £3,750 | | £12,000 |
For more information on SDLT we would recommend you speak to your solicitor or a tax advisor.
Please note information correct as of September 2021