Stamp duty calculator

The Government's stamp duty holiday has removed stamp duty on the first £500,000 on all properties up to March 2021 in England and Northern Ireland.

Prior to the stamp duty holiday, stamp duty needed to be paid on residential properties and land bought with a value in excess of £125,000. First-time buyers have a discount that means they do not pay any stamp duty on properties up to £300,000. First-time buyers that purchase a property between £300,001 and £500,000 paid 5%.

During the stamp duty holiday, buy-to-let properties and second homeowners pay stamp duty at a rate of 3% on values up to £500,000. For additional homes or BTL properties in excess of £500,000 the buyer will have to pay 8% stamp duty up from £500,000 to £925,000, 13% on £925,000 to £1.5 million and a full 15% on any additional property purchase over £1.5 million in value.

In Scotland, the 0% Land and Buildings Transaction Tax (LBTT) threshold has increased to £250,000 from £145,000 and the Land Transaction Tax (LTT) threshold for freehold residential transactions in Wales has increased to £250,000 from £180,000, both until 31 March 2021. After this time, they will revert to the rates as per the appropriate tables below.

Example saving with current Stamp Duty holiday:

You purchase a property worth £350,000 and complete before the 31st March 2021.

Before the change you would pay nothing on the first £125,000, 2% on the following £125,001 to £250,000 and finally 5% stamp duty for the remainder of the value of £350,000. 

First £1250,000 = £0.00 (0% x £125,000)

£125,001 to £250,000 = £2,500  (2% of £125,000)

£250,000 to £350,000 = £5,000  (5% of £100,000)

Total stamp duty before the holiday = £0 + £2,500 + £5,000 = £7,500.00

With the current stamp duty holiday you would pay nothing for a purchase up to £500,000, saving you the significant sum of £7,500. 

As outlined above stamp duty is no longer payable for properties up to £500,000 in England and Northern Ireland from 08 July 2020 to 31 March 2021.

Stamp duty for properties in excess of £500,000 and for the purchase of additional homes will now be charged as per the details given in the ‘At what price does stamp duty start?' section above.

In Scotland, the 0% Land and Buildings Transaction Tax (LBTT) threshold has increased to £250,000 from £145,000 and the Land Transaction Tax (LTT) threshold for freehold residential transactions in Wales has increased to £250,000 from £180,000, both until 31 March 2021. 

Stamp duty is calculated in a similar way to income tax bands. The bands are set by the land or property’s value and the percentage of stamp duty tax increases in each band. This means that the more expensive the property you want to buy, the more you will pay. The bands for residential properties and land stamp duty are:

England and Northern Ireland stamp duty bandings for residential property and land up to 31 March 2021

England and Northern Ireland stamp duty bandings for additional homes and buy-to-let properties up to 31 March 2021

England and Northern Ireland stamp duty bandings for residential property and land after 1 April 2021

These examples are for stamp duty rates without the current exemption.

You purchase a property at £250,000.

You are allowed £125,000 with no stamp duty tax to pay.

You then calculate 2% of £125,000

Stamp duty to pay is £2,500

You purchase a house at £300,000.

You are allowed £125,000 with no stamp duty tax to pay.

You then calculate 2% of £125,000 . This is £2,500.

You then need to calculate 5% of £50,000. This is £2,500.

Finally total the two values from the stamp duty bands: 2,500 + £2,500 = £5,000

The amount of stamp duty to pay is £5,000.

Stamp duty land tax (SDLT) is the full name for stamp duty and indicates that this tax is payable on the purchase of property and land in the UK.