Chat Support

Health check your property investments with a FREE portfolio review and find out how much you could be saving!

Stamp Duty Calculator

Work out how much Stamp Duty you'll pay with our easy to use calculator.

Stamp duty calculator

Find out how much stamp duty you will pay on a new home or residential buy to let (BTL) property with our residential stamp duty calculator. It calculates the amount due by individuals and corporate vehicles (Limited Companies) on first-home purchases, second-home purchases and BTL investment purchases.

Stamp Duty Calculator

Stamp duty consideration for buying freehold residential property.

What is Stamp Duty on Property?

Stamp Duty is charged on all land or property purchases throughout the UK. However, the four countries making up the United Kingdom have different legislation and rates of Stamp Duty. In England or Northern Ireland, there is Stamp Duty Land Tax (SDLT); in Scotland, it is called Land and Buildings Transaction Tax (LBTT); and in Wales, it is called Land Transaction Tax (LTT).

How is Stamp Duty calculated?

Although the three tax regimes charge Stamp Duty at different rates on different bands of property value, they all operate in a similar way.


For example, a residential property purchase (with no additional background property ownership) in England for £950,000 will attract the following SDLT:


0% on the first £250,000 (£0)
5% on the band between £250,000 and £925,000 (£33,750)
10% on the final £25,000 (£2,500)
Total SDLT to pay = £36,250

The information given here is based on purchases of residential property by UK residents; additional costs may apply for non-UK residents. 

If you already own a property (in the UK or overseas), Stamp Duty is higher for all additional homes (i.e., buy to let investments) under all of the Stamp Duty regimes in the UK.

N.B. A different system of Stamp Duty applies to the purchase of commercial and mixed-use properties throughout the United Kingdom.

How much is Stamp Duty?

Stamp Duty is chargeable on a banding system (as described above) and varies between England (and Northern Ireland), Scotland and Wales. However, a surcharge based on the total purchase price applies to purchases of additional residential properties, such as buy to let investment property, second homes and all residential purchases made by a Limited Company. The surcharge applies even if you own just a share in another property so long as that share is worth more than £40,000.

Here are the normal and additional rates of Stamp Duty across the United Kingdom.
England and Northern Ireland – Stamp Duty Land Tax (SDLT)

SDLT

SDLT is a tax imposed on the purchase of property or land in England and Northern Ireland above a certain value threshold, currently £250,000. For first-time buyers in England and Northern Ireland, this threshold is £425,000.

Property or lease value

Normal Rate

Additional Property Surcharge

Less than £250,000

0%

3%*

£250,001 to £925,000

5%

8%

£925,001 to £1.5 million

10%

13%

Over £1.5 million

12%

15%

*Additional property purchased for a value less than £40,000 will have a 0% rate.

For example, you purchase a house for £295,000. SDLT would be payable on:

0% on the first £250,000 (£0)

5% on the final £45,000 (£2,250)

Total SDLT to pay = £2,250

Additional Property Surcharge

A surcharge applies for purchasing additional properties in England and Northern Ireland. This 3% surcharge applies to all residential purchase transactions of second homes or by Limited Companies. The surcharge will apply even if you own just a share in another property, so long as that share is worth more than £40,000.

For example, if you purchase a BTL investment property or second home for £295,000, SDLT will be payable on:

3% on the first £250,000 (£7,500)

8% on the final £45,000 (£3,600)

Total SDLT to pay = £11,100

Scotland – Land and Buildings Transaction Tax (LBTT) 

Property or lease value

Normal Rate

Less than £145,000

0%

£145,001 to £250,000

2%

£250,001 to £325,000

5%

£325,001 to £750,000

10%

Over £750,000

12%

 

For example, you purchase a house for £295,000. LBTT would be payable on:

0% on the first £145,000 (£0)

2% on £105,000 (£2,100)

5% on the final £45,000 (£2,250)

Total LBT to pay = £4,350

 

LBTT Addition Dwelling Supplement

Scotland also implements an Additional Dwelling Supplement (ADS) for second-home and BTL property buyers. For properties purchased on or after 16th December 2022, the ADS is 6% of the total purchase price.

For example, you purchase a BTL investment property for £295,000. LBTT would be payable on:

0% on the first £145,000 (£0)

2% on £105,000 (£2,100)

5% on the final £45,000 (£2,250)

6% (ADS) on the full property price of £295,000 (£17,700)

Total LBTT to pay = £22,050

Wales – Land Transaction Tax (LTT)

The rates below apply to purchase transactions made on or after 10th October 2022.

 

Property or lease value

Main Rate

Up to and including £225,000

0%

£225,001 to £400,000

6%

£400,001 to £750,000

7.5%

£750,001 to £1.5 million

10%

Over £1.5 million

12%

 

For example, you purchase a house for £295,000. LTT would be payable on:

0% on the first £225,000 (£0)

6% on £70,000 (£4,200)

Total LBT to pay = £4,200

 

LTT Higher Rate

Wales also implements a surcharge for second home and BTL property purchases. The higher rates below apply to purchase transactions made on or after 22nd December 2022.

 

Property or lease value

Higher Rate

Up to £180,000

4%

£180,001 to £250,000

7.5%

£250,001 to £400,000

9%

£400,001 to £750,000

11.5%

£750,001 to £1.5 million

14%

Over £1.5 million

16%

 

For example, you purchase a BTL investment property for £295,000. LTT would be payable on:

4% on the first £180,000 (£7,200)

7.5% on £70,000 (£5,250)

9% on the final £45,000 (£4,050)

Total LBT to pay = £16,500

 

When do you pay Stamp Duty?

In England and Northern Ireland, you must pay your Stamp Duty Land Tax bill within 14 days of completion. In Scotland and Wales, you must pay your LBTT/LTT within 30 days of completion.

 

How to pay Stamp Duty

Usually, your solicitor will submit your Stamp Duty tax return and process the payment for you, but you can do it yourself.

To pay Stamp Duty for a property purchased in England or Northern Ireland, you can do so via the GOV.uk website. 

To pay Land and Buildings Transaction Tax for a property purchased in Scotland, you can do so via the Revenue.Scot website.

To pay Land Transaction Tax for a property purchased in Wales, you can do so via the Gov.Wales website.

Ultimately, you are responsible for ensuring your Stamp Duty is paid on time.

Frequently asked stamp duty questions…

Who pays Stamp Duty?

Stamp Duty is charged to the property purchaser(s).

Do first-time buyers pay Stamp Duty?

SDLT relief for first-time buyers in England and Northern Ireland

For first-time buyers, there is a reduced rate for SDLT. To be eligible, there are three main conditions you must meet:

  1. You (and the person you’re buying with if it is a joint purchase) must not previously have owned any residential property in the UK. Nor can you have owned a partial share in a residential property.
  2. The property must cost £625,000 or less
  3. You must intend to live in the property

Stamp Duty rates for first-time buyers

Property or lease value

First-Time Buyer Rate

Less than £425,000

0%

£425,001 to £625,000

5%

If the property you purchase is over £625,000, you cannot claim the first-time buyer relief and must pay standard Stamp Duty rates.

For example, if you purchase your first house for £500,000, SDLT would be payable on:

0% on the first £425,000 (£0)

5% on the final £75,000 (£3,750)

Total SDLT to pay = £3,750

First-time buyer relief Scotland

As of 1st April 2021, first-time buyers in Scotland benefit from an additional £600 tax relief when purchasing a residential property.

The relief has the same impact as increasing the current 0% rate threshold from £145,000 to £175,000.

What is Stamp Duty payable on?

  • The purchase of a freehold property
  • The purchase of a new or existing leasehold property
  • The purchase of a property through a shared ownership scheme
  • Land or property which is transferred in exchange for payment

What counts as non-residential property?

Non-residential property includes:

  • Commercial property, e.g., shops or offices
  • Agricultural land
  • Forests
  • Any other land or property which is not used as a residence
  • Six or more residential properties bought in a single transaction
  • Mixed-use property

Do you pay Stamp Duty on mixed-use properties?

Because mixed-use properties have both residential and non-residential elements (e.g., a flat connected to a shop), they are subject to Stamp Duty for non-residential property.

Do I pay Stamp Duty on inherited property?

No, you do not pay Stamp Duty when you inherit a property. However, if the property is your only property, you will pay second-home surcharges if you purchase another property. If you already own a home and decide to keep the house you inherited as a second home, you'll need to nominate one of your homes as your main home and let your tax office know. This is because you can only have relief from capital gains tax for your primary residence.

Do overseas investors pay the same rates of Stamp Duty?

Overseas investors purchasing residential property in Scotland and Wales pay the same amount of LBTT/LTT as domestic investors. However, in England and Wales, there is an additional SDLT surcharge of 2% paid by buyers from overseas (non-UK residents) when buying residential property. This takes the maximum rate of SDLT to 17%.

When is the SDLT flat rate of 15% applied?

SDLT is charged at 15% on the entire value of residential properties costing more than £500,000 bought by certain corporate bodies - or ‘non-natural persons’. These include:

  • Companies
  • Partnerships, including companies
  • Collective investment schemes

The 15% rate doesn’t apply to property bought by a company that is acting as a trustee of a settlement or bought by a company to be used for:

  • A property rental business (i.e., buy to let)
  • Property developers and trader
  • Property made available to the public
  • Financial institutions acquiring property in the course of lending
  • Property occupied by employees
  • Farmhouses

The standard residential rate of SDLT applies in these cases.

Essentially, this flat rate of SDLT is designed to tax properties purchased by foreign nationals within a UK limited company – and which would typically escape any SDLT on resale through the simple expedient of selling shares in the company (attracting just 0.5% Stamp Duty).



What are Enveloped buildings, and how does this affect SDLT?

Established in 2012, ATED (“Annual Tax on Enveloped Dwellings”) is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000. The tax is calculated in bands and starts at £3,500 per year for properties valued at between £500,000.01 and £1,000,000.

Some properties aren’t classed as dwellings. These include:

  • Hotels
  • Guest houses
  • Boarding school accommodation
  • Hospitals
  • Student halls of residence
  • Military accommodation
  • Care homes
  • Prisons

You may be able to claim relief for your property if it is:

  • Let to a third party on a commercial basis and isn’t, at any time, occupied (or available for occupation) by anyone connected with the owner – i.e., buy to let is not liable to this tax, although annual ATED returns may be required
  • Open to the public for at least 28 days a year
  • Being developed for resale by a property developer
  • Owned by a property trader as the stock of the business for the sole purpose of resale
  • Repossessed by a financial institution as a result of its business of lending money
  • Being used by a trading business to provide living accommodation to certain qualifying employees
  • A farmhouse occupied by a farm worker or a former long-serving farm worker
  • Owned by a registered provider of social housing

As with the SDLT flat rate of 15%, this is designed to ensure that residential properties bought by foreign nationals cannot avoid all UK taxation (in particular, taxes that would otherwise be due on resale, such as CGT and SDLT).

Talk to an expert

Have all the facts and figures you need to purchase or remortgage your home? Our experts will make the whole process easier for you! Give us a call or choose a convenient time for us to call you. Drop us an email or chat with a human on our live chat.



An error has occurred. This application may no longer respond until reloaded. Reload đź—™