UK Stamp Duty Calculator

UK Stamp Duty Systems Explained

How Stamp Duty is Calculated

Stamp duty uses a progressive 'slab' system where you pay different rates on different portions of the property price, similar to income tax bands. This means you don't pay the highest rate on the entire property value - only on the portion that falls within that band.

Example: £500,000 Property in England (from April 1, 2025)

Here's how the progressive bands work in practice:

• • First £125,000 @ 0% = £0
• • Next £125,000 @ 2% = £2,500
• • Next £250,000 @ 5% = £12,500
• • Total Stamp Duty: £15,000 (effective rate: 3%)

Note: Before April 1, 2025, the same property would have £12,500 SDLT (0% on first £250,000, 5% on next £250,000).

Why the Progressive System Works

• • You never pay the highest rate on your entire property value
• • Lower-value properties benefit from zero-rate bands
• • Marginal increases in price don't dramatically increase total tax
• • Each region can set rates appropriate to local property values

Key Terms & Deadlines

Understanding the Different Tax Names

• SDLT (Stamp Duty Land Tax): England & Northern Ireland
• LBTT (Land and Buildings Transaction Tax): Scotland
• LTT (Land Transaction Tax): Wales

All three serve the same purpose but have different rates and thresholds based on regional property markets.

Payment Deadlines

• • Payment due within 14 days of completion
• • Late payment incurs 5% penalty plus daily interest
• • Your solicitor typically handles payment and submission
• • Returns must be submitted to the relevant tax authority

First-time Buyer Relief

First-time buyers can benefit from reduced or eliminated stamp duty rates, but the rules vary significantly across the UK:

England & Northern Ireland

From April 1, 2025:

• • No SDLT up to £300,000
• • 5% on £300,001 - £500,000
• • No relief available above £500,000
• • Must be first property for all buyers
• • Only available to individuals (not companies/trusts)

Before April 1, 2025:

• • No SDLT up to £425,000
• • 5% on £425,001 - £625,000
• • No relief available above £625,000

Example (from April 2025): £500,000 property = £10,000 SDLT (vs £15,000 standard rate) - saving £5,000

Scotland

• • Enhanced nil-rate band to £175,000
• • Relief applies up to £600,000
• • Must be under 40 or disabled person
• • Must be only or main residence

Example: £300,000 property = £3,100 LBTT (vs £4,600 standard rate) - saving £1,500

Wales

• • Reduced rate of 3.5% (£225,001-£400,000)
• • Standard 0% band up to £225,000
• • Relief applies up to £400,000
• • Must intend to occupy as main residence

Example: £350,000 property = £4,375 LTT (vs £7,500 standard rate) - saving £3,125

Additional Property Surcharge

When Does it Apply?

The additional property surcharge applies when you purchase a residential property and you already own another residential property worldwide. This includes second homes, buy-to-let properties, and holiday homes.

Surcharge Rates by Region

• • England & Northern Ireland: Higher rate bands apply (3% on first £125k, 5% on £125k-£250k, 8% on £250k-£925k, 13% on £925k-£1.5m, 15% above £1.5m)
• • Scotland: 6% of entire property value (ADS)
• • Wales: 4% of entire property value

These surcharges are applied on top of standard stamp duty rates, significantly increasing the total tax due. No surcharge applies if you're replacing your main residence.

Exemptions & Refunds

You may be exempt or eligible for a refund if you're replacing your main residence. The rules vary by region but generally require you to sell your previous main home within a specific timeframe.

• • Moving home (replacing main residence)
• • Inherited property situations
• • Divorced or separated circumstances
• • Must apply within specific time limits (typically 36 months in England/Wales, 18 months in Scotland)

Non-UK Resident Surcharge

From April 1, 2021, a 2% surcharge applies to residential property purchases in England and Northern Ireland by non-UK residents. This surcharge is calculated as 2% of the entire property value and is added to the standard stamp duty (or higher rates for additional properties).

Who is Considered a Non-UK Resident?

You're considered a non-UK resident if you were not present in the UK for at least 183 days during the 12 months before the purchase date. This applies to individuals, companies, and trusts.

Important Notes

• • The surcharge applies to the entire property value, not just the portion above a threshold
• • It applies in addition to standard rates and any additional property surcharge
• • Currently only applies in England and Northern Ireland (not Scotland or Wales)
• • If multiple purchasers, the surcharge applies if any purchaser is non-UK resident

Non-Residential & Mixed-Use Properties

Non-Residential Properties

Commercial properties, shops, offices, and industrial buildings have different stamp duty rates. These rates are generally lower than residential rates and don't have additional property surcharges.

• • £0 - £150,000: 0%
• • £150,001 - £250,000: 2%
• • £250,000+: 5%

Mixed-Use Properties

Properties that combine residential and commercial use (like a flat above a shop) are treated as mixed-use and have their own rate structure. These rates apply to the entire property value.

• • £0 - £500,000: 0%
• • £500,000+: 5%

Note: Mixed-use properties cannot benefit from residential reliefs or surcharges, which can sometimes result in lower overall tax.

Special Cases & Reliefs

Leasehold Properties

• • SDLT applies to both lease premium and rent
• • Different calculations for ground rent
• • Commercial leases have specific rules
• • Assignment of leases may trigger SDLT
• • Surrender and regrant rules apply

Corporate Purchases

• • Same rates apply to company purchases
• • No first-time buyer relief available
• • Additional property surcharge may apply
• • Annual Tax on Enveloped Dwellings (ATED) considerations
• • Multiple dwellings relief available

Special Reliefs

• • Multiple dwellings relief (average price calculation)
• • Shared ownership schemes
• • Charity and public body exemptions
• • Right to buy discounts
• • Disadvantaged areas relief (rare)

Stamp Duty Planning Strategies

Legal Ways to Minimize Stamp Duty

• • Timing property chains: Ensure you sell before you buy to avoid surcharges
• • Separate chattels: Exclude furnishings and fittings from the property price
• • Multiple dwellings relief: Available when buying multiple properties
• • Lease structures: Consider long leaseholds vs freeholds
• • First-time buyer relief: Ensure you qualify and stay within limits

Common Mistakes to Avoid

• • Missing deadline: Late payment incurs 5% penalty plus interest
• • Incorrect classification: Residential vs commercial vs mixed-use matters
• • Overlooking reliefs: Not claiming available first-time buyer or other reliefs
• • Surcharge assumptions: Not understanding when additional property surcharge applies
• • Regional confusion: Using wrong rates for Scotland or Wales