What is Stamp Duty Land Tax?

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. You can find out here how much your Stamp Duty tax is likely to be by using our stamp duty calculator opposite. 

Just enter your property purchase price and press Calculate and your SDLT will be shown.

Enter your property purchase price:

Purchase Price Bands (£) Rate of Stamp Duty Breakdown
£0 - £125,000 0%  
£125,001 - £250,000 2%  
£250,001 - £925,000 5%  
£925,001 - £1.5 million 10%  
Over £1.5 million 12%  
Total:  

Levels of stamp duty for buy to let and second homes will change from 1st April 2016.

Changes were announced in the Autumn statement on November 25th 2015. From 1st April 2016, a 3% surcharge will be applied to second home purchases and a lower initial threshold of £40,000 will be introduced. Given that the vast majority of second home purchases fall outside this threshold, more transactions will attract stamp duty than before.

The higher rates will be 3 percentage points above the current SDLT residential rates. They will be charged on the portion of the value of the property that falls into each band.

Purchase Price Bands (£) Existing residential SDLT rates New additional property SDLT rates
£0 - £125,000 0%  3%
£125,001 - £250,000 2%  5%
£250,001 - £925,000 5%  8%
£925,001 - £1.5 million 10%  13%
Over £1.5 million 12%  15%

Example 1:

An additional residential property is purchased for £400,000. SDLT is calculated as follows:

3% on the first £125,000 = £3,750

5% between £125,001 and £250,000 = £6,250

8% on the remaining portion between £250,001 and £400,000 = £12,000

The total SDLT due is therefore: £3,750 + £6,250 + £12,000 = £22,000

Example 2:

An additional residential property is purchased for £600,000. SDLT is calculated as follows:

3% on the first £125,000 = £3,750

5% between £125,001 and £250,000 = £6,250

8% on the remaining portion between £250,001 and £600,000 = £28,000

The total SDLT due is therefore: £3,750 + £6,250 + £28,000 = £38,000

Scotland

In Scotland LBTT will also increase for purchasers of second homes. The 3% LBTT surcharge will be introduced at the same time as the rest of the UK.

 

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