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How Do You Calculate
SDLT?
Stamp Duty Costs are incurred when you:
- Buy a freehold property
- Buy a new or existing leasehold
- Buy a property through a shared ownership scheme
- Are transferred land or property in exchange for payment, ie: you take on a mortgage or buy a share in a house
How And When To Pay Stamp Duty
Your conveyancing solicitor will usually deal with the Stamp Duty return and the transfer of any costs due, although you can do it yourself. Either way however, you’re responsible for making sure it’s all submitted on time or there are heavy fines to pay.
You must still submit a return (unless exempt) even if you don’t need to pay any Stamp Duty costs.
SDLT
Thresholds.
The current Stamp Duty threshold for residential properties in England and Northern Ireland from the 1st of October 2021 is 0% if the property value is less than £125,000. The table shows stamp duty rates from October 2021 for residential purchases.
The Stamp Duty threshold for First Time Buyers is set at £500,000. So as a first-time buyer you will pay little or no tax if the purchase price is £500,000 or less and if you or anyone else you are buying with are first-time buyers.
| Tax Band | Normal Rate | Additional Property |
|---|---|---|
| less than £125k | 0% | 3%* |
| £125k to £250k | 2% | 5% |
| £250k to £925k | 5% | 8% |
| £925k to £1.5m | 10% | 13% |
| rest over £1.5m | 12% | 15% |
*Note: If an additional property is purchased for less than £40k then there will be 0% tax. For purchases of additional property from £40k to £125k the SDLT rate will be 3% on the full purchase price.
| Tax Band | Normal Rate | Additional Property |
|---|---|---|
| less than £125k | 0% | 3%* |
| £125k to £250k | 2% | 5% |
| £250k to £925k | 5% | 8% |
| £925k to £1.5m | 10% | 13% |
| rest over £1.5m | 12% | 15% |
*Note: If an additional property is purchased for less than £40k then there will be 0% tax. For purchases of additional property from £40k to £125k the SDLT rate will be 3% on the full purchase price.
More Than Just A Calculator.
If you are planning to buy a home, whether as a first-time buyer or a full-time property investor, you will need to be aware of the rules and regulations surrounding stamp duty in the UK and the costs involved. Doing so early could very well save you both time and money.
How much you pay depends on whether the land or property is residential, non-residential, or mixed-use and calculations take into consideration a number of other personal circumstances. We will take you through this in detail on our Stamp Duty Rates In The UK page.
Stamp Duty News</span
Stamp Duty: Market Value vs. Purchase Price
When purchasing property in the UK, one of the significant costs involved is stamp duty. This tax is levied by the government and is based on the value of the property being purchased. However, a common question arises: Is stamp duty calculated on the market value or the purchase price?