If you’re buying a home in England or Northern Ireland costing more than £125,000, you’ll have to pay Stamp Duty Land Tax (SDLT) on your purchase.
There are several rate bands for Stamp Duty.
The tax is calculated on the part of the property purchase price falling within each band.
For example, if you are buying a house for £275,000, the Stamp Duty Land Tax (SDLT) you owe is calculated as follows:
0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £25,000 = £1,250
Total SDLT = £3,750
Use our Stamp Duty calculator to find out how much you’ll pay. This example if for a first time buyer or moving home.
If you are a buyer of additional residential properties, such as second homes and buy-to-let properties, will have to pay an extra 3% in Stamp Duty on top of current rates for each band.
This increased rate applies to properties bought for £40,000 or more.
If you buy a new main residence and there’s a delay in selling your current home, you’ll have to pay the higher Stamp Duty rates as you’ll now own two properties, but if you sell or give away your previous main home within 3 years of buying your new home you can apply for a refund of the higher SDLT rate part of your Stamp Duty bill.
As of October 2018, first-time buyers under Shared Ownership schemes can now claim First-Time Buyers Stamp Duty relief on homes worth up to £500,000.
You have 14 days to file a Stamp Duty Land Tax (SDLT) but solicitors normally will sort this out for you on completion, but it is always best to check with your solicitor.