Stamp Duty can be a significant expense when you buy a property, especially after the rule changes in April 2016 which introduced a 3% stamp duty surcharge on buy-to-let and second homes.
This calculator includes 2016 stamp duty rules, rates and thresholds, for both Stamp Duty Land Tax (SDLT, in England, Wales and Northern Ireland) and LBTT (Land & Buildings Transaction Tax in Scotland). Use it to calculate how much you will pay based on where the property is located and whether it is a second home or buy-to-let.
Stamp duty rates and thresholds since April 2016
Stamp duty is calculated on the price you pay for your property. It uses thresholds that vary depending on whether the property is in Scotland (where LBTT applies) or England, Wales or Northern Ireland (where SDLT applies). The rate you pay also depends on whether you will own two or more properties at the end of the day of the transaction, which affects buy-to-let investors and people buying a home other than their main residence.
Until December 2014 stamp duty operated on a “slab tax” system, where the overall rate jumped at each threshold.
That system was replaced with a graduated system, which works similarly to Income Tax: in other words, you pay different rates on different portions of the price.
The rules were updated in April 2016 to apply a surcharge for property investors and second home buyers, which applies to both SDLT and LBTT (although there are exemptions for transactions where the total sale price is under £40,000).
So for example, with the current thresholds in England, Wales and Northern Ireland, here's how much stamp duty you'd pay when buying either your first property, or replacing your main residential property:
- 0% (nothing) on the first £125,000 of the purchase price
- 2% on the next £125,000 (i.e. any portion of the price between £125,000 and £250,000)
- 5% on the next £675,000 (i.e. any portion of the price between £250,000 and £925,000)
- 10% on the next £575,000 (i.e. any portion of the price between £925,000 and £1.5 million)
- 12% on any portion of the price above £1,5 million.
Whereas, for a buy-to-let property or second home in Scotland, which has different thresholds and rates (but the same 3% surcharge as the rest of the UK), here's how much LBTT you'd pay:
- 0% (nothing) if the total purchase price is under £40,000, otherwise:
- 3% on the first £145,000 of the purchase price
- 5% on the next £105,000 (i.e. any portion of the price between £145,000 and £250,000)
- 8% on the next £75,000 (i.e. any portion of the price between £250,000 and £325,000 million)
- 13% on the next £425,000 (i.e. any portion of the price between £325,000 and £750,000)
- 15% on any portion of the price above £750,000.
You can see exactly how this is worked out with the dynamic total chart in the top / right-hand portion of this calculator (back to top).
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This calculator is for general illustrative purposes only and results may not be accurate. We recommend you speak to a mortgage adviser for advice tailored to your circumstances.