Whether you are a first time buyer or buying a second home, residential or for buy to let purposes, our calculator will help you work out how much you need to pay to HMRC. Our stamp duty calculator has been amended following the recent stamp duty holiday announcement until 31st March 2021.
What Is Stamp Duty?
Stamp Duty Land Tax (SDLT) must be paid if you buy a property or land over a certain price in England and Northern Ireland. Stamp Duty Land Tax or SDLT is basically a tax payable on properties by the buyer, there are incentives available to First Time Buyers. There are different levels of stamp duty tax bands with rates steadily increasing from lower to higher bands.
Stamp Duty Holiday
The Chancellor announced a stamp duty holiday which means that homebuyers in England and Northern Ireland will not have to pay stamp duty on homes up to £500,000 until 31 March 2021. The threshold for purchases has been amended from £125,000 to £500,000.
Second homes and buy to let investments will remain and continue to incur a 3% surcharge. However additional property purchases will also benefit from the higher initial stamp duty threshold of £500,000 with a minimum of 3% surcharge to be applied to transactions up to this amount.
New Stamp Duty Rates
Please see the newly announced freehold residential stamp duty rates in England and Northern Ireland below:
First Time Buyer
- Less than £500k - Rate 0%
- £500k to £925k - Rate 5%
- £925k to £1.5m - Rate 10%
- test over £1.5m - Rate 12%
- Less than £500k - Rate 3%
- £500k to £925k - Rate 8%
- £925k to £1.5m - Rate 13%
- test over £1.5m - Rate 15%
Buy To Let & Second Homes
For next time buyer and buy to let properties the rate of stamp duty is clearly higher, to get a feel for the amount that would be payable by you, please use our friendly calculator below, if you have any questions, please drop us a message and one of our advisers will be in touch.
If for example you are selling your existing property know as your Principle Primary Residence and buying another primary residence, you may have other investment properties, such as buy to lets in the background, you will only be liable for the single property rate of SDLT, not the second property rate.
There are also the instances where if you own property anywhere worldwide, then you must declare this to the solicitor who will calculate the SDLT liability at the additional property rates, or if you are married and your partner owns a property then you are considered as having an interest so again this will trigger the additional property rates and needs to be declared on the SDLT return submitted to HMRC.
In reality the reduced time frame should not have a significant impact on individuals. This is because most SDLT returns will be submitted by a solicitor or conveyancer acting on behalf of their client.
When is Stamp Duty Paid?
Stamp duty is now required to be paid within 14 day after you complete on the purchase of your property. The 14 day submission period came into effect from March 2019 and has been reduced from an initial 30 days period. If you fail to submit a return and pay the tax within 14 days, HMRC will most likely charge you interest penalties.
How Is Stamp Duty Paid?
Normally stamp duty payments are processed by your conveyancing solicitor however you can do it yourself if required but you must make sure it's submitted on time. For example, if the cost of your new home is under £500,000 you still need to submit a return even if you don't need to pay any Stamp Duty.
Stamp Duty Refunds
You may be eligible for a stamp duty refund if you are moving house. You can claim for a refund online or by post and this can be submitted once the sale of your previous property is complete .