Calculate Your Stamp Duty Tax

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Residential Property
Stamp Duty

If you are buying any residential property in the UK you will have to pay something called Stamp Duty Land Tax (SDLT) on any property over £125,000. As investors you will also be liable to pay a 3% additional rate on top of this fee as you are buying a second property which is not a main residence. Below see how the SDLT Tax Bands work and use our Stamp Duty calculator to calculate exactly how much you will pay on any properties you are considering investing in.

With SDLT you will pay tax on the part of the purchase price falling within each specific band. See the below table and an example which will demonstrate clearly how the system works

BracketsStandard rateBuy-to-let/second home rate
Up to £125,0000%3%
£125,001 - £250,0002%5%
£250,001 - £925,0005%8%
£925,001 - £1.5m10%13%
over £1.5m12%15%
(HMRC)

For example, if you buy a house for £275,000, the Stamp Duty Land Tax (SDLT) you owe is calculated as follows:

0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £25,000 = £1,250

Total SDLT = £3,750

if you were to then buy this property as an investment and not as a main residence one In which you live you would then pay 3% on top of this.

3% of £275,000 = £8250
Total SDLT = £3,750 + £8250 = £12,000

First Time Buyer
Stamp Duty

First time buyers in the UK, you do not have to pay any Stamp Duty when purchasing a property of the value up to and including £300,000. As a first time purchaser you will then pay Stamp Duty at a rate of 5% up to £500,000 meaning they are making a saving of £5000. Once above the £500,000 threshold the brackets are the same as they are for a standard purchase. A first-time buyer in the UK is defined as anyone who has had no interest in the ownership of residential property either in the UK or Overseas.

Commercial Stamp Duty

When purchasing Non-residential/Commercial property in the UK you will be liable to pay SDLT on any freehold or leasehold existing property over £150,000. You will pay a percentage based on various price thresholds much like you would with a residential property, see below a table and an example which demonstrate exactly how this would work.

PropertySDLT rate
Up to £150,0000%
£150,001 to £250,0002%
The remaining amount (the portion above £250,001)5%

If you bought a commercial property for £320,000 you would pay nothing on the first £150,000, 2% on £150,001 to £250,000 and a further 5% on the amount above £250,001.

£320,000 – £250,000 = £70,000 x 0.05% = £3,500
£250,000 – £150,000 = £100,000 x 0.02% = £2,000

Total=£5,500