Stamp Duty Calculator

If you’re buying a home in England or Northern Ireland you will have to pay Stamp Duty Land Tax on properties costing more than £125,000. This guide explains how Stamp Duty works, and there is a calculator to help you calculate costs.

Everything you need to know about stamp duty

In many cases when buying a property you’ll have to pay stamp duty so this cost should be taken into account when deciding on your budget and which home you can afford.

The rate of stamp duty you pay depends on the value of your property and whether you’ve bought a home before.

Stamp duty can be quite complex, so this guide will answer the following questions:

  • What is stamp duty?
  • How does stamp duty work and how much you pay?
  • How does stamp duty work for first-time buyers?
  • When do you pay stamp duty?
  • Can stamp duty be added to my mortgage?

What is stamp duty?

Stamp duty land tax – known in Scotland as land and buildings transaction tax – is a tax payment you have to pay when you buy a property or plot of land which costs more than a certain amount. The amount of stamp duty you pay depends on the type and price of property. It also varies when you buy a commercial building rather than a residential property.

Stamp Duty Calculator

How does stamp duty work and how much you pay?

Stamp duty is paid on all homes which cost more than £125,000 in England or Northern Ireland.

Stamp Duty is paid at different rates, depending on the purchase price. For example, if you bought a property for £425,000 you would pay:

  • No stamp duty tax on the value of the property up to £125,000
  • 2% stamp duty on the property value between £125,001 and £245,000
  • 5% on the property value above £250,000

In this case, total liability for Stamp Duty would be £11,250 giving an effective tax rate of 2.65%.

An extra 3% stamp duty is paid on top of the standard band rates for all second homes.

How does stamp duty work for first-time buyers?

If you’re a first-time buyer in England and Wales and purchase a property at up to £500,000, you’ll be exempt from paying stamp duty on the first £300,000. Instead you’ll pay 5% on the proportion of the property between £300,000 and £500,000.

The Autumn 2018 Budget also extended the stamp duty exemption to first-time buyers purchasing shared-ownership properties bought at up to £500,000.

 When do I pay stamp duty?

Stamp Duty is payable within 30 days of completion (when all the contracts are signed and dated and you have your keys). Solicitors will normally pay the tax on your behalf and add to their fees. It is your legal responsibility to ensure your stamp duty is paid – and if you make your payment late you could face a fine or interest on top.

Can stamp duty be added to my mortgage?

Stamp duty can be added to your mortgage – however, there are a number of things to consider:

  • The stamp duty will increase the amount you borrow
  • You’ll end up paying the additional amount over the full term of your mortgage, which could be very costly
  • Your loan-to-value ratio (LTV) could be affected and increase the amount you require to borrow to buy your chosen property

Clever Mortgages will help you throughout your property purchase and answer any questions you have about stamp duty. Get in touch now for all your mortgage enquiries.

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