Stamp Duty Calculator
Our Stamp Duty calculator can help you see at-a-glance how much you’ll need to set aside for Stamp Duty Land Tax when you buy your new property.
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Stamp Duty Land Tax (SDLT) is a premium you pay to HMRC if the property you’re buying is over a certain amount. This isn’t the amount you borrow for a mortgage. It’s the entire price you pay for the home.
In England, you have 14 days after completion/picking up the keys to make the payment. If you don’t, you may accrue interest on the amount you owe.
Some lenders will offer to add the Stamp Duty onto the mortgage; in some instances, borrowers have no choice but to do that if all their savings have gone towards the deposit. But this means you will pay interest on that Stamp Duty for the length of the mortgage.
Whether it’s worth paying that premium depends entirely on your circumstances. Speak to a broker if you’re unsure and they’ll help you decide.
Stamp Duty thresholds
There are technically four ‘thresholds’, as displayed in the table below, but the price you pay is tiered:
| PURCHASE PRICE | MAIN RESIDENCE | SECOND HOME / ADDITIONAL PROPERTY / BUY TO LET |
| Up to £250,000 (£425,000 for first-time buyers) | 0% | 3% |
| £250,001 – £925,000 | 5% | 8% |
| £925,001 – £1,500,000 | 10% | 13% |
| £1,500,001 + | 12% | 15% |
Besides those most common tiers, if you’re a first-time buyer and the home you buy is >£625,000, you’ll pay the regular Stamp Duty. Furthermore, if you pay less than £40,000 for a home, there is no SDLT due. Plus, there are all sorts of instances whereby you might qualify for SDLT relief.
To go into all the permutations would fill a book, so we’ll keep it simple with two examples of Stamp Duty wherein there are no exemptions.
First-time buyer SDLT example
You’re a first-time buyer and the home you want to buy is priced at £500,000. This covers two tiers on the table: 0% and 5%.
You wouldn’t pay Stamp Duty on the first £425,000, only the balance of £75,000:
- 0% of £425,000 = 0%;
- 5% of £75,000 = £3,750.
So, that £3,750 is all you pay. But the amount due will be different if you own/have owned a home before.
Existing homeowner SDLT example
Using the same amount, £500,000, here’s what you’d pay if you’re not a first-time buyer.
You’d still incorporate 0% on the first £250,000; on the balance of £250,000, you’d pay 5%:
- 0% of £250,000 = 0%;
- 5% of £250,000 = £12,500.
As you can see, the difference is considerable, and accrues further the greater the cost of the home.
Now, it’s your turn. The calculator below will give you how much you’ll pay, depending on whether you’re a first-time buyer or not.
Use our other calculators on site to work out potential deposits, monthly repayments and Stamp Duty.
If you’re unable to make sense of the figures our calculator returns, give us a call on 0208 421 7998.
