UK Residential Property and Buy-To-Let Stamp Duty Tax Calculator
How much stamp duty will you have to pay when buying a residential property?
The Buying Solution, our buying consultancy, will be happy to help you (alongside your legal/ financial advisers, as appropriate) with the UK property buying process.
The following calculator and commentary is for general interest only and must not be relied on. It may not be up to date or complete, relates only to certain types of residential property in England or Wales and does not constitute advice. We can often help you to find suitable independent advisers, but you will always need to take specific advice from your property lawyers, accountants or other financial advisers on tax issues in specific situations.
When is Stamp Duty paid?
When buying a property over a certain price, stamp duty is payable to the HMRC 30 days from the date of completion or you may risk a fine. Your solicitor or legal adviser should take care of this for you and ensure you don't miss the deadline. Some buyers prefer to add on the SDLT amount to their mortgage loan. Please speak to your mortgage provider.
What were the major changes to UK Stamp Duty?
Stamp Duty Land Tax (SDLT) is a progressive tax paid when purchasing a freehold, leasehold or shared ownership residential property over £125,000 in England, Northern Ireland and Wales (separate Land and Buildings Transaction Tax in Scotland). New SDLT rates were introduced in 2014's Autumn Statement, introducing a sliding system based on thresholds and dependent on a property price.
Different SDLT rates and thresholds apply to non-residential property or mixed use land.
Before 2014 a 'slab structure' was in place with buyers paying a rate based on the ENTIRE property purchase price. The new rates are now payable only on the PORTION of a property price which falls within each band. As with every tax, there are those who will be better and worse off compared to the previous system.
Stamp Duty Tax Rates as of December 2014 for residential properties purchased by individuals
How to calculate the new Stamp Duty rate
So, if you bought a property for £850,000 you would you pay no stamp duty on the first £125,000, then 2% on £125,000 to £250,000 and 5% above £250,000. (eg: £800,000 - £250,000 = £600,000 x 0.05 = £30,000 + £2,500 = £32,500). As the property price increases the rate of pay increases within a certain tax bracket with percentages rising when a higher price threshold is reached. Under the new SDLT property over £925,000 - £1.5m will be taxed at a rate of 10% compared with 5% in 2014.
See historic SDLT rates.
Buy-to-let and second homes Stamp Duty 2018
From April 2016, property buyers in England and Wales will have to pay an additional 3% on each stamp duty band. To discuss which London or UK areas will provide the highest returns on investments in 2018, 2019 and beyond, please speak to one of our London or regional property experts who can offer advice on where and when to invest.
Read more information on Second Home or Buy-to-Let Stamp Duty , exemptions or to calculate surcharge.
|Buy-to-let and second home Stamp Duty tax bands|
|Brackets||Standard rate||Buy-to-let/second home rate (April 2016)|
|Up to £125,000
|£125,001 - £250,000
|£250,001 - £925,000
|£925,001 - £1.5m
Can I reduce Stamp Duty?
As stamp duty is only payable on the land purchase, removable fixtures and fittings, or chattels, such as freestanding wardrobes, sofas, fridges, carpets and curtains, are not subject to SDLT and can, therefore, be subtracted from from the total property price. Everything 'attached' to property such as light switches technically form part of the property and are subject to SDLT.
If a seller is willing to leave certain chattels, you should agree to pay a reasonable amount between yourself and the vendor and subtract it from the agreed purchase price. This can be executed by a good tax lawyer or conveyancer.
Who pays Stamp Duty?
Stamp Duty is paid by everyone purchasing a residential or non-residential property in England, Northern Ireland and Wales, including overseas buyers, corporate bodies and non natural persons.
Knight Frank Finance LLP is dedicated to negotiating the most attractive mortgage finance terms for clients from its established network of lenders, often securing terms unavailable elsewhere. Should you have any questions, one of their mortgage experts will be able to help you at every stage of the property financing process.
Contact one of our London or regional offices who will be able to offer guidance.