Stamp Duty. The Dreaded Tax. 

Stamp Duty is tax that is implemented by the government during certain transactions. Whilst, of course we are in the property market and your house buying process is subject to stamp duty calculations, however, it is in fact a tax applied across the transferring of many assets, such as real estate, stocks and bonds but also can apply to legal documents such as motor vehicle registration and insurance policies.

The purpose for this tax varies, but of course the income generated as revenue stems vastly from the property market and greatly depends on the value of the property and its location.

Stamp Duty rates actually vary quite significantly across the UK so it is important you apply the right benchmarks in the right jurisdiction.

There are certain rest bits, such as First Time Buyer thresholds, but it is essential that all buyers understand your stamp duty payment obligations when working out the affordability of your purchase.

How Much Stamp Duty Do I Need to Pay?

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in
England and Northern Ireland. How much you pay depends on whether the land or property is
residential or non-residential or mixed-use.

You pay the Stamp tax when:

  • You already own a property and you’re buying an additional property
  • You’re a first time buyer
  • You’re not a UK resident

If you’re buying a residential property there are different rates of Stamp Duty Land Tax if you:

  • Buy a freehold property
  • Buy a new or existing leasehold
  • Buy a property through a shared ownership scheme
  • Are transferred land or property in exchange for payment, for example, you take
    on a mortgage or buy a share in a house.

 

Stamp Duty Calculator - England & Northern Ireland

 

Please note this is for properties in England and Northern Ireland.

Purchase Price Normal Rate Additional Property
Less than £250K 0% 3%
£250K – £925K 5% 8%
£935K – £1.5M 10% 13%
Over £1.5M 12% 15%

An additional property purchased for less than £40k will attract 0% tax. For purchases from £40,000 to £250,000 the SDLT rate will be 3% on full purchase price.

Stamp Duty

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Scotland

Land and Building Transaction Tax (LBTT)

Purchase Price Normal Rate Additional Property
Less than £145K 0% 6%
£145K – £250K 2% 8%
£250K – £325K 5% 11%
£325K – £750K 10% 16%
Over £750K 12% 18%

An additional dwelling purchased for less than £40,000 will attract 0% tax. For purchases from £40,000 to £145,000 the rate will be 6% on the full purchase price.

Wales

Land Transaction Tax (LTT) 

Single Property: 

Purchase Price Normal Rate
Less than £225K 0%
£225K – £400K 6%
£400K – £750K 7.5%
£750K – £1.5M 10%
Over £1.5M 12%

Additional Property

Purchase Price Additional Property
Less than £180K 4%
£180K – £250K 7.5%
£250K – £400K 9%
£400K – £750K 11.5%
£750K – £1.5M 14%
£1.5M 16%

An additional property purchased for less than £40,000 will attract 0% tax. For purchases from £40,000 to £180,000 the LTT rate will be 4% on full purchase price.

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