Stamp Duty Calculator

 
Stamp Duty Land Tax (SDLT) is payable if you buy a property or land over a certain price in England. Use our stamp duty calculator based on the 8th July 2020 Stamp Duty Land Tax: temporary reduced rates

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Stamp Duty Rates

Stamp Duty Land Tax is paid at different rates for different tiers of the total purchase price (consideration paid).

Period: from 8th July 2020 to 31st March 2021

Property Price
(based on total consideration paid)
Standard Rate of Stamp Duty
Maximum SDLT for Tier
£0 - £500,000
0%
£zero
£500,001 - £925,000
(The next £425,000)
5%
£21,250
£925,001 - £1.5 million
(The next £575,000)
10%
£57,500
Over £1.5 million
(The remaining amount)
12%
£variable * 12%



Period: from 8th July 2020 to 31st March 2021

Property Price
(based on total consideration paid)
Higher Rate of Stamp Duty
Maximum SDLT at this rate
£0 - £500,000
3%
£zero
£500,001 - £925,000
(The next £425,000)
8%
£34,000
£925,001 - £1.5 million
(The next £575,000)
13%
£74,750
Over £1.5 million
(The remaining amount)
15%
£variable * 15%


You should Call HMRC for help with Stamp Duty Land Tax queries and to confirm your own personal liability on 0300 200 3510 Opening times: 8.30am to 5pm, Monday to Friday (closed weekends).

How is the SDLT calculated?

Stamp Duty is paid at different rates, depending on the purchase price and if you own more than one property (read more about the second home stamp duty charge below).

You should Call HMRC for help with Stamp Duty Land Tax queries and to confirm your own personal liability on 0300 200 3510 Opening times: 8.30am to 5pm, Monday to Friday (closed weekends).

Property Price
(based on total consideration paid)
Standard Rate of Stamp Duty
Additional Home Rate
Total for Second Homes
(standard plus additional)
£0 - £125,000
0%
3%
3%
£125,001 - £250,000
2%
3%
5%
£250,001 - £925,000
5%
3%
8%
£925,001 - £1.5 million
10%
3%
13%
Over £1.5 million
12%
3%
15%

What is stamp duty?

Stamp duty land tax is payable when you buy land or property over a certain price. You can use the above stamp duty calculator to work your liability using the current tax band rates.

The process for paying your stamp duty is easy for buyers because your solicitor will normally do this for you. After completion the solicitor files a Stamp Duty Land Tax (SDLT) Form with the HM Revenue & Customs online (although some can still submit a paper submission). Even if there is no stamp duty liability, the solicitor is still required to file a tax return.

Any stamp duty payable must be paid within 30 days after the completion date. Although there is this 30 day payment term, if you are getting a mortgage, it is part of the mortgage lender's regulations that the solicitor is in funds with the stamp duty before completion can take place. This means that you should be prepared to make payment to your solicitor for any stamp duty liability the day before your completion date is set.

Budget 2017 - First Time Buyer Stamp Duty Relief

As of the 22nd November 2017 stamp duty has been abolished entirely for first time buyers for property prices up to £300,000 in England ( NB There is no first time buyer relief available for property purchased in Wales, where different stamp duty rates apply ). 

For properties priced between £300,001 and £500,000, you have to pay the normal stamp duty that applies to that particular banding with a £5,000 deduction. 

There is no first time buyer relief when purchasing properties priced at more than £500,000.

For Example, if your purchase price is £500,000 then you pay stamp duty of £10,000 (£15,000 less £3,000).

Who is a first time buyer?

In order to count as a first time buyer, a purchaser must not, either alone or with others, have previously acquired a major interest in a dwelling or an equivalent interest in land situated anywhere in the world (this includes inheritances and gifts).

What SDLT banding is used for the £301k to £500k?

The standard 5% for the stamp duty land tax bracket applied between £250,001 & £925,000.

As a simple rule, for any property in England that is priced between £301,000 to £500,000 for a first time buyer you work out the standard SDLT liability and then deduct £5,000.

What if the first time buyer doesn’t live in the property?

All the purchasers must intend to occupy the dwelling as their only or main residence. In cases where an individual resides at only one dwelling, that will be their only or main residence. You cannot benefit from the stamp duty relief for buy to let properties.

Do I get first time buyer relief on my shared ownership?

First time buyer stamp duty relief applied to all shared ownership purchases where a full market value election was made, from completions dated on or after 22 November 2017 and as of  29 October 2018, the relief was extended to all shared ownership purchases, i.e. also to include where the buyer opts to pay stamp duty in stages. Additionally, HMRC backdated the availability of this relief to 22 November 2017 so that those first time buyer shared ownership purchasers who'd opted to pay in stages and had not had the relief could reclaim it.

The same limits apply (nothing to pay for property prices up to £300,000 then a £5,000 discount for properties bought for between £300,001 and £500,000 but no relief at all for properties priced above £500,000).

What if you have exchanged before 22 November 2017 but not yet completed?

You will still benefit from the stamp duty change as the effective date for the stamp duty liability is from the date of completion. This helps first time buyers who have already exchanged on a new build property that has a future completion day.



How much stamp duty is payable?

The amount of stamp duty that you pay depends on whether the land/property is residential or non-residential or mixed use. The above calculator should only be used for Residential land or property.

You pay SDLT on the consideration paid for the land or property. In most circumstances this will be the amount of money a buyer pays to the seller for the property. Consideration isn't always an exchange of money, it could also be:

  • giving of goods (giving a personal possession in exchange for the land/property);
  • providing works or services (giving work or a service in exchange for the land or property);
  • release from a debt; and/or
  • transfer of a debt, including the balance of an outstanding mortgage;

In the circumstances above, the value of the consideration (for example the value of the goods given) is the value used to calculate the stamp duty on. If you are looking to transfer a property between family then you need to read this article - Gifting Property - 4 ways to gift your property

Can you own a property 50/50 with your partner but own 99% /1% of the property?

No. Your beneficial interest must be the same as your declaration to HMRC for your income from property. See here Ownership and income tax: legal background: ownership.

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What is the new higher rate for additional properties?

From the 1st April 2016 there is an additional 3% tax payable on the consideration on land/property for buyers who on completion own another property. This doesn't apply if you are replacing your main residence.

The rules state:

3.1 The higher rates will apply to the purchase of a major interest in a single dwelling by an individual, if at the end of the day of purchase Conditions A to D are met:


  • Condition A - the chargeable consideration is £40,000 or more;
  • Condition B - the dwelling is not subject to a lease which has more than 21 years;
  • Condition C - the purchaser owns a major interest in another dwelling which has a market value of £40,000 or more and is not subject to a lease which has more than 21 years to run at the date of purchase of the new dwelling; and
  • Condition D - the dwelling being purchased is not replacing the purchaser’s only or main residence.

3.2 If any of Conditions A to D are not met the higher rates will not apply to the purchase.

For example: John lives and owns Property A as his main residence. John buys Property B. If at the time of completion John didn't sell Property A, then he will have to pay the second home stamp duty charge. It doesn't matter if John moves to Property B and chooses this to be his main residence, he still has to pay the additional 3% charge, because he hasn't sold Property A at the time he bought Property B.

For example: John lives and owns Property A as his main residence. John buys property B. On the day of completion John sells Property A, and buys Property B, then there is no second home stamp duty charge.

"If you aren't selling your main residence, and then buy another property, then you most likely have to pay the additional stamp duty"

If you are moving from your main residence, however bought before you sold, then you have 36 months to sell your old main residence in order to claim a refund of the additional stamp duty.

Our stamp Duty Calculator provides results for both sole property owners and second home owners - You can read more about the additional stamp duty payment here.

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The rules are different for married couples & civil partnerships

If you are married or in a civil partnership then you need to check your individual circumstances, even if one of you is not going to be an owner of the property. As a rule, if either of you own another property on completion, it does not matter whether you are legal owners jointly or solely, you may still have to pay the second home stamp duty if you fall under the set criteria.

The exact wording is as follows:

3.44 Where an individual with a spouse or civil partner purchases an interest in a dwelling and their spouse or civil partner is not a joint purchaser, the spouse or civil partner will be treated as a joint purchaser in respect of the transaction. 3.45 This means that where a purchaser is married or in a civil partnership, if Conditions A to D are met by either spouse or civil partner, the transaction will be a higher rates transaction.


Example 1 - Married with 2 separate properties
Andrew and Jayne, a married couple, each own a residential property, with neither having any interest in the other’s property. They both live in the property owned by Jayne: the property owned by Andrew is rented out. Jayne is selling her property and they are jointly purchasing a new one, which will be their new main residence. Andrew will retain his rented out property.

The higher rates will not apply to the joint purchase by Andrew and Jayne of a new main residence. As they are married and have both lived in the property owned by Jayne as their main residence they will both be treated as replacing their main residence.

Example 2 - Unmarried with 2 separate properties
Alyson and James, who are not married to one another, each own a residential property, with neither having any interest in the other’s property. They both live in the property owned by Alyson: the property owned by James is rented out. Alyson is selling her property and they are jointly purchasing a new one, which will be their new main residence. James will retain his rented out property.

The higher rates will apply to the joint purchase of a new main residence by Alyson and James. As they are not married (or in a civil partnership) James will not be treated as replacing his main residence as, even though he has been living in the property owned by Alyson, he has no interest in the property Alyson is selling.


Do you pay the 2nd home tax if you own a property overseas?

If you or any joint owner own a property inside or outside of the UK that isn't being replaced by the purchase of your new property, then you will pay the additional stamp duty tax at the prevailing rate.

Do companies pay the second home stamp duty tax?

The rules state:

5.1 The higher rates will apply to the purchase of major interests in one or more dwellings by a company, if Conditions A and B are met in respect of at least one of the dwellings:

  • Condition A - the dwelling is purchased for chargeable consideration of £40,000 or more;
  • Condition B - the dwelling is not subject to lease which has more than 21 years to run on the date of purchase;

5.2 If none of the interests in dwellings meet both Conditions A and B then the higher rates will not apply to the purchase.


Joint Mortgage Sole Proprietor mortgage, is there 2nd home stamp duty to pay?

The rules state:

Mr and Mrs M are helping their son buy his first property by providing the deposit for a flat which will be his main residence. Mr and Mrs M currently own just one property, the family home. Due to the bank’s lending criteria they require Mrs and Mrs M to be a party to the mortgage and be on the deeds of the property. On the same day as the purchase a deed will be executed which will provide that Mr and Mrs M have no interest in the property and that their son has full beneficial interest in the property.

The higher rates will not apply because Condition C is not met

Taking the above into consideration, if your intentions were for the legal owner to own 100% of the beneficial interest and for the parents to just be on the mortgage, then you would not pay the second home stamp duty tax.

If your intentions are for the parents to have a beneficial interest in the property and that they already own a beneficial in another property that is worth more than £40,000, then the second home stamp duty will apply.
You should Call HMRC for help with Stamp Duty Land Tax queries and to confirm your own personal liability on 0300 200 3510 Opening times: 8.30am to 5pm, Monday to Friday (closed weekends).
 
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