Stamp duty rates are the same in England, Wales and Northern Ireland, but different rates apply in Scotland so make sure you choose the right option from the drop down box on our stamp duty calculator.
Our stamp duty calculator has been updated with the new Stamp Duty rates announced in the November 2017 budget, which is great news for first time buyers in England, Wales and Northern Ireland who no longer have to pay stamp duty on property up to £300,000.
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If you’re buying a property costing more than £125,000, you’ll need to pay Stamp Duty Land Tax (SDLT) on your purchase.However, under changes announced in the 2017 Budget, different rules apply if you’re a first-time buyer purchasing a property costing less than £500,000.Here, we explain exactly how the stamp duty system works, so you can work out how much you’ll need to pay.
Stamp duty is a tax which homebuyers, with the exception of most first-time buyers, must pay when purchasing a property costing over the stamp duty threshold, which is currently £125,000. It is payable whether you are buying a freehold or leasehold property. The amount you pay is a percentage of the purchase price and that percentage will depend on the value of the property.
Stamp duty can add up to a considerable amount, so it’s important to budget for this in advance.You can use London & Country’s stamp duty calculator to work out how much you can expect to pay. Simply enter the purchase price of your property and the calculator will do the rest.
If you’re a first-time buyer who has never owned a residential property, you don’t have to pay stamp duty on the first £300,000 of the property value if you’re buying a home costing up to £500,000. You must pay 5% stamp duty on the portion between £300,001 and £500,000. That means the stamp duty threshold for first-time buyers is as follows:
If you already own a home and are buying another property, either to rent out, use as a holiday home, or for any other purpose, you’ll usually have to pay 3% on top of the normal stamp duty rates. This surcharge will also apply even if the main home you currently own is overseas.
If you purchase a house for your child, and are named on the deeds of the property, whilst already owning a property, the surcharge will be payable.
If you already have a buy to let property, and are selling your main residence and buying a new main residence for you to live in, you will not have to pay the surcharge.
If you complete on your new property while still owning your old home you will have to pay the surcharge. However, if you sell your old home within 36 months you can reclaim the extra tax.
If you are purchasing a percentage of a shared ownership property, you can opt to pay Stamp duty on just the share you are purchasing, or if you are likely to purchase additional shares you can opt to pay stamp duty on the full purchase price. Please refer to the government website for full information.
You have 30 days from the date of completion to pay your stamp duty.
The date of completion is the day all the contracts have been signed and dated – and usually the day when you get the keys to your new home. In most cases, your solicitor or conveyancer will take care of paying the stamp duty on your behalf and they should confirm this for you. If you take longer than 30 days, you could be subject to a fine and you may even have to pay interest on top.
The Government plans to reduce the amount of time you have to pay any stamp duty you owe from 30 days to 14 days with effect from April 2018.
Most first-time buyers no longer have to pay stamp duty, but there are a few other types of property transaction where you don’t have to pay stamp duty. These include:• A divorce or separation where one partner is transferring their share of the property to the other• If the property is a gift • If the property is left in a will• If you buy a freehold property for less than £40,000You can find more about stamp duty exemptions on the Gov.uk website.
If you’re buying a property in Scotland, you'll pay Land and Buildings Transaction Tax (LBTT) rather than stamp duty. LBTT rates are shown below. Scottish buyers are not affected by changes to first-time buyer stamp duty rules in England.
(Rates shown correct at the time of writing – November 2017)