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.

WHY WAS A STAMP DUTY HOLIDAY ANNOUNCED?

In 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, a temporary stamp duty holiday was announced to support the housing market amidst COVID-19 and Brexit discussions. The result was flourishing property price growth and a surge of new activity with renewed investor confidence.

WHAT ARE THE MAJOR CHANGES TO STAMP DUTY FOLLOWING THE 2021 BUDGET SPEECH?

The announcement was made on the 3rd of March 2021 in the Budget address to extend the stamp duty holiday adopting a phasing out approach with periodic surcharges until the stamp duty is back to original rates by October 2021.

The stamp duty holiday stipulates that first-time buyers will pay zero stamp duty up to the value of GBP500,000. The threshold for zero stamp duty will be reduced to GBP250,000 from July 1st and reach pre-holiday rates at the original GBP125,000 threshold by October 1st. However, buy-to-let and second home buyers receive a 3% surcharge and thus the calculations for stamp duty payable based on property value bands can be further explained in the table below.

UK Stamp Duty 2021

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, or to find out about our investment opportunities benefiting from a significant stamp duty saving, contact us now.

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Stamp Duty Payable
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The table below shows how your stamp duty payable is calculated

Price of Property Rate Payable