Stamp duty calculator - How much is stamp duty?

Stamp duty threshold in England and NI

‍

Stamp duty can add up to a considerable amount, so it’s important to budget for this in advance.

You can use L&C’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.

Stamp duty for first time buyers in England and NI

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 £425,000 of the property value if you’re buying a home costing up to £625,000. You must pay 5% stamp duty on the portion between £425,001 and £625,000. That means the stamp duty threshold for first time buyers is as follows:

‍

Standard stamp duty rates apply to first time buyers purchasing properties costing more than £625,000. For joint applications, both parties must be first time buyers – if either has owned property before, the standard stamp duty rates will apply.

These changes were announced on 23rd September 2022 and came into immediate effect.

Stamp duty in Scotland and Wales

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. First time buyers in Scotland benefit from relief through an increased nil rate band of LBTT up to £175,000.

‍

If you’re buying a property in Wales, under the Welsh government’s Land Transaction Tax (LTT), which replaced stamp duty in April 2018, there is no LTT to pay for all buyers purchasing homes costing up to £225,000. This came into effect on 10th October 2022.

The following table shows the main residential LTT rates and bands in Wales, as of 10th October 2022.

Stamp duty on second homes

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 a surcharge. This will vary depending on where the property is, with England and NI charging an additional 3% and Wales and Scotland applying an additional 4% 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.

Stamp duty on new builds

Stamp duty is payable on the price you pay for your new build property. Stamp duty is payable on fixtures and fittings which are considered to be attached to the building, such as fitted wardrobes or a kitchen. However, stamp duty is not payable on removable fixtures and chattels such as carpets and curtains. Some builders may give you an incentive payment to help cover the cost of your stamp duty.

Stamp duty on shared ownership properties

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.

When do you pay stamp duty?

You have 14 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 14 days, you could be subject to a fine and you may even have to pay interest on top.

Other stamp duty exemptions

Many 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 £40,000

You can find more about stamp duty exemptions on the Gov.uk website.

Stamp duty is just one of the additional costs you’ll need to pay when you buy a house. To find out more about the other additional costs, read L&C's guide to the cost of buying a house.

(Rates shown correct at the time of writing – September 2022)