What is stamp duty?
Stamp Duty Land Tax (SDLT) is a tax paid by the buyer of a UK residential property when the purchase price exceeds £125,000. The stamp duty rate ranges from 2% to 12% of the purchase price, depending upon the value of the property bought, the purchase date and whether you are a multiple home owner.
Anyone purchasing an ‘additional’ residential property will be charged a 3% surcharge on each of the threshold bands.
If you are buying to let, as a landlord, you will have to pay SDLT if the income from a short term property let (up to seven years), residential tenancy or lease is above the threshold.
From 1 April 2021, a 2% surcharge was added to each of the rates below for buyers who are non-UK residents. To calculate stamp duty for a non-UK resident, tick the ‘I am a non-UK resident’ box on the calculator above. For more detail on who qualifies as a non-UK resident, visit our non-UK resident stamp duty calculator page.
What are the standard tax band thresholds?
| For the purchase of a main residence | |
|---|---|
| Purchase price bands (£) | Rate (%) |
| Up to £125,000 | 0% |
| Between £125,001 and £250,000 | 2% |
| Between £250,001 and £925,000 | 5% |
| Between £925,001 and £1.5 million | 10% |
| Over £1.5 million | 12% |
| For the purchase of ‘additional’ property | |
|---|---|
| Purchase price bands (£) | Rate (%) |
| Up to £125,000 | 3% |
| Between £125,001 and £250,000 | 5% |
| Between £250,001 and £925,000 | 8% |
| Between £925,001 and £1.5 million | 13% |
| Over £1.5 million | 15% |
What are the stamp duty rates for first time buyers?
First time buyers purchasing a property up to £500,000 in value will be eligible for the discounted stamp duty rates below. To be eligible, you and anyone you are purchasing with must be first time buyers.
| For the purchase of a main residence | |
|---|---|
| Purchase price bands (£) | Rate (%) |
| Up to £300,000 | 0% |
| Between £300,001 and £500,000 | 5% |
If your property costs more than £500,000 in value, there will be no first time buyer exemption and the standard rates will apply.
I currently/will own more than one property. Will I be liable for more stamp duty?
Unless you are selling and replacing your main residence, the purchase of a property in addition to your main residence is likely to be liable for the surcharge. To find out more and to understand how you pay stamp duty speak to one of our experts at Londonwide Conveyancing.
For help calculating the amount of SDLT which you might owe on residential properties use our stamp duty calculator.