How is stamp duty calculated?
Stamp Duty Land Tax in England uses a banded system similar to income tax. You pay the relevant percentage only on the portion of the purchase price that falls within each band. The first £125,000 is tax-free for standard purchases, the next £125,000 is taxed at 2%, and so on. You do not pay the highest rate on the entire price.
What is first-time buyer relief?
First-time buyers in England currently pay no SDLT on the first £300,000 of the purchase price, and 5% on the portion between £300,001 and £500,000. Above £500,000, no relief applies and standard rates are charged. All buyers in a joint purchase must be first-time buyers to claim the relief.
What is the additional property surcharge?
A 5% surcharge applies when buying an additional residential property, such as a second home or buy-to-let investment, if you already own a residential property. The surcharge applies on top of standard rates and can be refunded if you sell your previous main home within 3 years.
Does stamp duty apply in Scotland and Wales?
No. Scotland has its own Land and Buildings Transaction Tax and Wales has Land Transaction Tax. Both have different rates and thresholds from English SDLT. This calculator covers England and Northern Ireland only.