Stamp Duty Rates | UK SDLT Rates Calculator
In the UK, Stamp Duty Rates are set by the UK Government and are payable when purchasing a property. Stamp Duty Rates are percentage based rates and are staggered in a similar way to the UK Income Tax rates.
Rates of Stamp Duty increase with the purchase value of a property and different percentage rates are applied to the different parts of the total purchase price. Stamp Duty Rates are different depending on whether the purchase is a commerical or residential purchase. Our SDLT calculator should be used purely for residential purchase calculations only. We DO NOT offer SDLT calculations for commercial purchases.
- Current UK Residential Stamp Duty Rates (SDLT Rates)
- Buy to Let / Additional Property Higher Stamp Duty Rates
- 2017 First Time Buyer Stamp Duty Rates Reduction
Stamp Duty Rates - Changes to the way Stamp Duty is Calculated
In December 2014, the UK Government replaced the old stamp duty rates with new stamp duty rates. The old "slab style" tax system calculated SDLT as one percentage based on the total purchase value. E.g.
Purchasing a house for £500,000
Stamp Duty on £500,000 @ 5% = £12,500
The new stamp duty rates system introduced back in 2014, operates on a "tiered style" tax system. SDLT is calculated using predefined brackets, with percentages being calculated on the PORTION remaining of the purchase price. E.g.
Purchasing a house for £500,000
TOTAL PURCHASE PRICE = £500,000
| Stamp Duty Bracket | Percentage % | Purchase Price Portion | Stamp Duty Amount |
|---|---|---|---|
| £0 - £250,000 | 0 | £250,000 of £500,000 | 0 |
| £250,001 - £925,000 | 5 | £250,000 of £500,000 | 12500 |
| £925,001 - £1,500,000 | 10 | £0 | 0 |
| £1,500,001 + | 12 | £0 | 0 |
Therefore £12,500 total SDLT payable.
Many people believe this a fairer way of calculating stamp duty rates and SDLT compared to the old style system. It also helps to avoid sellers or buyers under pricing properties to avoid paying the next bracket of stamp duty or higher rates of stamp duty.
Standard Current Stamp Duty Rates
The standard current stamp duty rates applicable to purchases in England and Northern Ireland are:
| Stamp Duty Bracket | Percentage % |
|---|---|
| £0 - £125,000 | 0 |
| £250,001 - £925,000 | 5 |
| £925,001 - £1,500,000 | 10 |
| £1,500,001 + | 12 |
In Scotland SDLT has been replaced by the Scottish Government by Land and Buildings Transaction Tax (LBTT). Our stamp duty tax calculator DOES NOT calculate LBTT. Please use The Scottish Stamp Duty website for Scottish Stamp Duty Calculations.
Buy to Let / Additional Property Stamp Duty Rates - Higher Rate of SDLT
On the 1st April 2016, the stamp duty rates for any person buying an additional property were changed. Additional properties includes buy to let investments and second homes. Every stamp duty bracket, attracted an additional 3% surcharge, resulting in a higher amount of SDLT being paid on these types of property purchases.
Buy-to-Let, Additional Properties & Second Homes under £40,000
If you are purchasing a seond home, additional property or a buy to let investement under the value of £40,000, then there is no stamp duty to pay.
Higher SDLT Rates - Are there any exemptions to the Additional Property Stamp Duty Rates?
There are a few exceptions to the higher rates of SDLT and when they are NOT applicable. these are:
- a Purchase under the value of £40,000
- a Caravan. Mobile Home or Houseboat
- The property is located outside of England, Wales or Northern Ireland
Current Additional Property, Buy To Let, Second Home, higher Stamp Duty Rates
The current SDLT rates for additional properties, buy to let investments and second homes are calculated using the following stamp duty rates:
| Stamp Duty Bracket | Percentage % |
|---|---|
| £0 - £250,000 | 3 |
| £250,001 - £925,000 | 8 |
| £925,001 - £1,500,000 | 13 |
| £1,500,001 + | 15 |
As mentioned previously, the additional SDLT / second home stamp duty rates, only apply to purchases OVER £40,000. Anything under £40,000, is not subject to SDLT.
2017 First Time Buyer Stamp Duty Rates - SDLT Abolished up to £425,000 and Reduced up to £625,000
On the 223rd September 2022, the Government announced changes to the current stamp duty rates for first time buyers. Any first time buyer purchasing a property up the value of £425,000 will pay NO STAMP DUTY. There are also Stamp Duty Rates relief available for first time buyers purchasing up to £625,000, with a rate of 5% payable on the remaining amount of the purchase price.
The stamp duty rates cut is expected to help first time buyers on to the UK property market with many of them saving up to £5,000 from the newly introduced SDLT rates.
Current First Time Buyer Rates in England, Wales and Northern Ireland
The current rates applicable to first time buyer purchases up to £625,000 are:
| Stamp Duty Bracket | Percentage % |
|---|---|
| £0 - £425,000 | 0 |
| £425,001 - £625,000 | 5 |
If you are first-time buyers and you are purchasing a property OVER £625,000, then unfortunately the discounted SDLT rates will NOT APPLY to your purchase and you will be subject to the standard rates of stamp duty as detailed above.
To be considered for the first time buyer stamp duty rates, all parties involved in the purchase must be considered a first time buyer and must not have owned a property in the UK or overseas in the past.
As Scotland operates it's own Stamp Duty Rates system set by the Scottish Government, the first time buyer relief DOES NOT APPLY TO SCOTLAND and their LBTT.