You appear to be using an old version of Internet Explorer.

Some elements within this site are not compatible with your browser.

Please consider upgrading your browser or switching to a different one to avoid any compatibility issues.

You can contact us at enquiries@premier-propertysearch.co.uk or by calling +44 (0)1962 793100

Stamp Duty Land Tax Calculator - How Much Will I Have To Pay?

Stamp Duty Land Tax Calculator

For those of you who have been left scratching your heads following the recent changes to the Stamp Duty and Land Tax (SDLT) bands we thought it would be helpful to prospective buyers to provide a SDLT calculator for easy maths!

All you need to do is enter the purchase price of your property and press Calculate and your SDLT will be revealed. To use our SDLT calculator please click here.

Stamp Duty Land Tax (SDLT) is what you are required to pay the government when you purchase a home over £125,000. The amount you pay varies depending on the value of your home.

George Osborne has made reforming changes to the stamp duty and land tax (SDLT) system by moving away from the old unpopular ‘slab’ system to a ‘progressive’ one and announcing a revision to the thresholds and tax rates applicable.

The new SDLT thresholds and applicable tax rates came into effect at midnight on 4 December 2014.  There are now five tax bands, each applying to a particular slice of value, as shown below:

  • 0% on any amount up to £125k
  • 2% on any amount over £125k up to £250k
  • 5% on any amount over £250kup to £925k
  • 10% on any amount over £925k up to £1.5m and
  • 12% on any amount over £1.5m

Buyers at prices below £937k are generally favoured or no worse off. Those above that figure will be worse off paying more SDLT making the need for a skilled property negotiator even more imperative.

The SDLT threshold has a major impact on how properties are valued and marketed. Under the previous system the market was essentially distorted by making it nonsensical to buy a property for a price just above the stamp duty thresholds of £250k, £500k, £1m, and £2m. This was because the entire value of the purchase was taxed at one rate – commonly known as a ‘slab’ system.

The new rate is only payable on the slice of the property price falling within each band.

To use our SDLT calculator click here.

With the exception of London properties, there has been a significantly reduced number of transactions at the upper price levels according to Land Registry and this upper end of the market has yet to recover in real terms. This new, admittedly fairer system for the majority, will not only distort the market further and frustrate buyers, but also slow the market down.

If you are looking to purchase a new property in the coming months, are concerned by the recent changes to SDLT and need help in searching, finding and negotiating the right price for your new home please contact Nigel Sellers on +44 (0) 1962 793100 or email: enquiries@premier-propertysearch.co.uk.