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Stamp Duty Calculator

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Property is a buy to let or second home

*Properties under £40,000 are not subject to second home SDLT

*Updated March 16th 2016

 

 

What changes to UK Stamp Duty to expect in 2016?

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.

Stamp Duty Tax Rates as of December 2014

Brackets Rate
£0-£125,000 0%
£125,001-£250k 2%
£250,001-£925k 5%
£925,001-£1.5m 10%
£1.5m+ 12%

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 2016

From April 2016, property buyers in England and Wales will have to pay an additional 3% on each stamp duty band. To discuss which West Cumbrian areas will provide the highest returns on investments in 2016 and 2017, please speak to one of our Lettings Managers, on where and when to invest.  Or take a look at our recommended Investment Properties

 

 Buy-to-let and second home Stamp Duty tax bands
 Bracket Standard Rate Buy-to-let/second home rate (April 2016)
 Up to £125,000  0%  3%
 £125,001 – £250,000 2% 5%
 £250,001 – £925,000 5% 8%
 £925,001 – £1.5m 10% 13%
 over £1.5m 12% 15%
Source: HMRC

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.

Who pays Stamp Duty?

Stamp Duty is paid by everyone purchasing a property in England, Northern Ireland and Wales above £125,000, including overseas buyers.

When is Stamp Duty paid?

You must pay stamp duty 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.

How often does Stamp Duty change?

New stamp duty rates and thresholds have historically been introduced every 2-5 years with the latest changes effective of December 2014.