Residential Stamp Duty Calculator

Residential Stamp Duty Calculator

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Author: Carl Shave - CEO and co-founder
Last updated: 26 May 2024

Use our stamp duty calculator to work out how much stamp duty you will have to pay when buying a new property. Stamp duty is calculated on a stepped basis on house purchases bought for more than £250,000. However, recent changes to rules now mean that first-time buyers in England, Wales and Northern Ireland are exempt from stamp duty on purchases up to £425,000.

What is stamp duty?

Stamp Duty Land Tax (SDLT), usually just referred to as stamp duty, is a transaction tax on property purchases. The amount of tax payable is based on the actual purchase price (formally called the “chargeable consideration”) rather than the market value of the property.

At the time of writing, stamp duty is currently payable in England, Wales and Northern Ireland. A different type of tax, Land and Buildings Transaction Tax (LBTT) applies to property purchases in Scotland, and from 1 April 2018 a similar devolved tax, Land Transaction Tax (LTT) will apply in Wales.

Stamp duty changes

Over the years, successive governments have made various changes to stamp duty, usually as measures to stimulate or dampen certain parts of the property market. For example, from April 2016 the government introduced a 3% surcharge on purchases over £40,000 where the property was a second home. Although this affected people buying holiday homes, the measure was primarily intended to supress the purchase of second and subsequent properties as buy-to-let investments.

More recently, the government’s 2022 “Mini Budget” announced the abolition of stamp duty for first-time buyers on homes purchased for up to £425,000, with reduced liability on purchases between £425,001 and £625,000. The move took effect from 23 September 2022, and was designed to allow more young people to buy their first property by directly reducing the costs and making purchasing a starter home more affordable.

First-time buyers purchasing property for more than £625,000 are not entitled to any relief and will pay stamp duty at the normal rates.

How is stamp duty calculated?

Stamp duty on residential property purchases is charged on stepped rates according to the purchase price. The table below shows the basic stamp duty rates that apply to each segment of the overall purchase price for home movers, those buying a second (or subsequent) property, and first-time buyers purchasing a property for over £625,000.

 

Band Normal rate Second property
Up to £250,000 0% 3%
£251,000 to £925,000 5% 8%
£925,001 to £1.5 million 10% 13%
Over £1.5 million 12% 15%

 

For example, a home mover buying a property for £295,000 would pay:
Nothing on the first £250,000: £250,000 x 0% = £0
Plus 5% on the amount between £250,000 and £925,000: £45,000 x 5% = £2,250
Total stamp duty payable: = £2,250

The next table summarises the changes to stamp duty for first-time buyer purchases up to £625,000 from 23 September 2022.  First time buyers purchasing above £625,000, or for any property that is not for their own occupation, are not entitled to any stamp duty relief and will revert to the standard calculations as shown above.

Band New rate for first-time buyers
Up to £425,000 0%
£425,001 to £625,000 5%

 

Contact Just Mortgage Brokers today

Whether you are a first-time buyer, a home mover or looking at buy-to-let property, Just Mortgage Brokers can help you navigate the mortgage market and find the lender and mortgage deal that best suits your individual needs. Call us or contact us online today to speak to one of our impartial, expert advisors.