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NEW 2020 Stamp Duty Calculator

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Property is a buy to let or second home

*Updated August 2020

What is Stamp Duty?

Stamp Duty Land Tax (SDLT) is paid on residential property purchases in England and Northern Ireland. Although discounts are available (e.g. if it is your first home), Stamp Duty is paid in increasing portions based on the property value.

Stamp Duty is known as Land and Buildings Transaction Tax in Scotland, while in Wales buyers pay what is known as Land Transaction Tax.

 

What is the Stamp Duty Holiday?

The chancellor announced a temporary holiday on stamp duty on 8th July 2020, reliving those of SDLT when purchasing property up to the value of £500,000. The holiday is due to last until 31st March 2021.

 

NEW Stamp duty rates July 2020 – March 2021:

Property Value SDLT Rate
Up to £500,000 0
£500,001 – £925,000 5%
£925,001 – £1.5 million 10%
Above £1.5 million 12%

 

Stamp Duty Rates as of December (prior to holiday): 

Property Value SDLT Rate
Up to £125,000 0
£125,001 – £250,000 2%
£250,001 – £925,000 5%
£925,001 – £1.5 million 10%
Above £1.5 million 12%

 

How will the Stamp Duty Holiday Affect Me?

Almost nine out of ten buyers pay stamp duty under the normal SDLT rules, costing some up to £15,000. With the average detached property in Cockermouth costings £311,507*, West Cumbrian purchasers could save roughly £5,575.33 under the new guidelines.

Overall, the temporary relief on tax is a welcome boost to the property industry and is set to encourage those thinking of selling to act now rather than later. See how much you could save on average:

 

Average Detached Property in Cockermouth

Property Price Tax Band % Taxable Sum Tax Amount
£311,507* £0 – 125,000 0 £125,000 £0
£125,001 – £250,000 2% £125,000 £2,500
£250,001 – £925k 5% £61,507 £3,075.35
  Total Under SDLT: £5,575.35
  Total Under SDLT Holiday: £0

 

Average Semi-Detached Property in Cockermouth

Property Price Tax Band % Taxable Sum Tax Amount
£216,063* £0 – 125,000 0 £125,000 £0
£125,001 – £250,000 2% £91,063 £1,821.26
  Total Under SDLT: £1,821.26
  Total Under SDLT Holiday: £0

 

Average Terraced Property in Cockermouth

Property Price Tax Band % Taxable Sum Tax Amount
£184,917* £0 – 125,000 0 £125,000 £0
£125,001 – £250,000 2% £59,917 £1,198.34
Total Under SDLT: £1,198.34
  Total Under SDLT Holiday:                               £0

 

For further information, visit: https://www.gov.uk/stamp-duty-land-tax.

*https://www.rightmove.co.uk/house-prices/cockermouth.html

See historic SDLT rates. 

Buy-to-let and second homes Stamp Duty 2020

Property buyers in England and Wales will have to pay an additional 3% on each 2020 stamp duty band. To discuss which West Cumbrian areas will provide the highest returns on investments, please speak to one of our Lettings Managers, on where and when to invest.  Or take a look at our recommended Investment Properties

NEW Stamp Duty Rates for Second Homes and Buy-to-Let July 2020 – March 2021:

Property Value SDLT Rate
Up to £40,000 0%
£40,001 – £500,000 3%
£500,001 – £925,000 8%
£925,001 – £1.5 million 13%
Above £1.5 million 15%

 

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 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