Stamp duty for first time buyers has been abolished for most purchasers.
Stamp duty for buy to let property has increased substantially from April 2016.
Stamp duty for second homes also attracts a 3 percent surcharge from April 2016. Mobile homes, caravans and houseboats are exempt.
Stamp duty refunds are available for home movers replacing their main residence. The original home must be sold within 3 years.
Calculate stamp duty (SDLT) in England and Northern Ireland with our instant stamp duty calculator.
Calculate how much stamp duty you will pay:
A stamp duty refund may be available if you are moving house. The refund may be claimed online or by post and can be submitted following the sale of your previous home.
Full qualifying criteria can be found in our moving house section.
Stamp Duty Land Tax (SDLT) is a tax levied on the purchase of property in England and Northern Ireland.
SDLT is a progressive tax and is charged at different rates depending on the purchase price of a property. There are a number of stamp duty tax bands with rates progressively rising from lower to higher bands.
The freehold residential stamp duty rates in England and Northern Ireland are shown in the table below:
|Tax Band||Normal Rate||Additional Property|
|less than £125k||0%||3%*|
|£125k to £250k||2%||5%|
|£250k to £925k||5%||8%|
|£925k to £1.5m||10%||13%|
|rest over £1.5m||12%||15%|
|* An additional property purchased for less than £40k will attract 0% tax. For purchases from £40k to £125k the SDLT rate will be 3% on full purchase price. The SDLT rates above apply to freehold residential purchases in England and Northern Ireland.|
Stamp duty rates have increased for anyone purchasing an additional property. Additional property types include buy to let investments and second homes. From April 2016 a 3% surcharge has been applied on top of the normal SDLT rate.
The higher stamp duty rates only apply to additional residential property. Land and other types of property are not normally considered when determing ownership of additional property for stamp duty purposes.
The higher rates of stamp duty should not apply when moving home. Normal rates of stamp duty will apply for anyone replacing a main residence even if they own two properties in the short term.
If a previous home is not sold immediately, stamp duty will be calculated at the higher rate and a refund may be claimed later.
Stamp duty refunds can be claimed up to 12 months after selling a previous home as long as the old home is sold within 3 years of purchasing the new one.
For more informtion can be found in our moving house section.
The initial stamp duty threshold for first time buyers has increased to £300,000. This means the majority of first time buyers will no longer pay any stamp duty.
To help first time buyers in more expensive locations such as London, additional stamp duty relief is available for purchases up to £500,000. The additional first time buyer relief is available for first time purchases in all locations across England and Northern Ireland.
For qualifying criteria, calculations and rates please visit our stamp duty for first time buyers page.
Stamp duty now needs to be paid within 14 days after completing on a property purchase. The 14 day period for submitting a stamp duty return has been effective from March 2019 and has been reduced from 30 days.
In reality the reduced time frame should not have a significant impact on individuals. This is because most SDLT returns will be submitted by a solicitor or conveyancer acting on behalf of their client.
Major changes to stamp duty were implemented in December 2014. The old stamp duty system was considered to be a "slab tax" whereby rates were incremented at each SDLT threshold and applied to the whole property purchase price.
Since 2014 stamp duty has become "progressive" and rate increases are applied between stamp duty thresholds, not to the final purchase price.
Further changes were made to the new stamp duty system in November 2017 when the government introduced first time buyer relief.
Stamp duty has been in the news again recently with much speculation around further stamp duty changes. As part of wider tax reforms, Prime Minister Boris Johnson has hinted that stamp duty rates could be reduced to help support the housing market.
Some ideas currently attracting debate include:
In a recent tweet, the Chancellor Sajid Javid now appears to have discounted shifting SDLT liability from buyers to sellers, stating he would not support this.
The Government has indicated that they could increase stamp duty for non UK residents. This change in stamp duty would mean that residents outside the UK would pay an extra 3% in stamp duty if they choose to purchase a property in England or Northern Ireland.
The increase in stamp duty for overseas purchasers could help take some heat out of the London property market where foreign investment is high.
Further changes to stamp duty could be announced in the next Budget which is due to take place on 11th March this year.
Stamp duty revenue has generally been on an upward trend over the last 40 years. Following the extensive stamp duty reform in 2014 stamp duty receipts continued to rise.
In 2017/18 stamp duty generated approximately £12.9 billion for the Government but this has fallen to about £11.9 in 2018/2019. First time buyer relief and uncertainty in the housing market are two factors being attributed to the decline in stamp duty revenue.
Stamp duty calculations with new stamp duty thresholds. One ckick SDLT Calculations!
Following Changes in 2018, Land Transaction Tax (LTT) has replaced Stamp Duty in Wales.