Stamp Duty Calculator
What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a progressive tax paid when purchasing leasehold, freehold or shared ownership real estate over £125,000 in England, Northern Ireland and Wales. In Scotland it is called Land and Buildings Transaction Tax (LBTT).
Who pays Stamp Duty?
Everyone who purchases a property in the UK whether residential or non-residential, pays stamp duty land tax. This includes corporate bodies, overseas citizens and non-natural persons.
What are the major changes to UK Stamp Duty in 2020?
As of April 2020, the Stamp Duty Land Tax (SDLT) started at 3% for homes valued from £125,000 up to 15% for houses valued over £1.5 million. On the 8th of July 2020, the Chancellor of the Exchequer unveiled an emergency mini-budget that included the removal of stamp duty taxes. Between July 8th 2020 and March 31st 2021, first time buyers up to the value of £500,000 won’t pay SDLT if the property completes before the 31st of March 2021. For buyers of additional dwellings a flat rate of 3% applies to the same threshold. From £500,000 up, there is a progressive tax system.
How was the previous rate calculated?
The rate of SDLT increases for each property price bracket. When a higher price threshold is reached, the next portion of your investment is taxed on the progressive rate. See the below table for a more detailed breakdown on the previous SDLT rates.
*An additional property purchased for less than £40k will attract 0% tax. For purchases from £40k to £125k the SDLT rate will be 3% on full purchase price. The SDLT rates above apply to freehold residential purchases in England and Northern Ireland.
Note: Further stamp duty relief is available for first time buyers.
How is the new stamp duty rate calculated?
The below rate applies for completed property purchases between the 8th of July 2020 and the 31st of March 2021. An additonal surcharge of 3% should be added to each rate for buyers additional dwellings.
When is Stamp Duty paid?
Stamp duty is payable to HM Revenue & Customs (HMRC) 14 days from the date of completion or late penalties apply. At IP Global, your solicitor will take care of this and make sure the deadline isn’t missed.
How do I reduce Stamp Duty Tax?
Stamp duty tax is only payable on your property’s permanent building fixtures. This means that if you have removable fixtures and fittings such as fridges, sofas, freestanding wardrobes, curtains and carpets they are not subject to the SDLT tax. You can therefore subtract these items from the total property price
For more information, please contact us now.
The table below shows how your stamp duty payable is calculated
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