UK Stamp Duty Calculator for Investors

Updated for October 2021

Calculate the Stamp Duty for 2021 on any UK property purchase including first-time buyer stamp duty and Buy-to-Let stamp duty calculation.

What is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a tax on properties bought in England and Northern Ireland. SDLT is applied on any residential property purchase over £125,000 and is a legal requirement. You can use this calculator to discover how much Stamp Duty you’ll pay on your new property, although it’s important to consider that this is in general interest and does not constitute financial advice.

Our Stamp Duty Calculator also gives rates on any second property, taking into account the new changes when buying an additional property that costs more than £40,000.

What is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a tax on properties bought in England and Northern Ireland. SDLT is applied on any residential property purchase over £125,000 and is a legal requirement. You can use this calculator to discover how much Stamp Duty you’ll pay on your new property, although it’s important to consider that this is in general interest and does not constitute financial advice.

Our Stamp Duty Calculator also gives rates on any second property, taking into account the new changes when buying an additional property that costs more than £40,000.

Stamp Duty 2021 Rates for Buy-to-Let and Second Homes

 
Stamp Duty has changed in recent years. In April 2016 it was announced that people buying an additional property – usually for Buy-to-Let purposes – would pay an additional 3% on top of normal rates.

Then, a SDLT Holiday was announced in 2020, completely removing base SDLT rates on purchases up to £500,000 – although the additional property surcharge still applied. This has since been extended into two separate phases detailed below.

Finally, in April 2021, an additional surcharge has also been added for non-UK residents – they now pay an extra 2% on top of everything else.
 

Phase 2 Rates (1 July – 30 September)

Property Band Normal Rate Additional Property Overseas Buyer
* An additional property purchased for less than £40k will attract 0% tax.
For purchases from £40k to £125k the rate will be 3% on full purchase price.
Up to £250,000 0% 3%* 5%*
£250,000 to £925,000 5% 8% 10%
£925,000 to £1,500,000 10% 13% 15%
Over £1,500,000 12% 15% 17%

 

Normal Rates (apply after 1 October 2021)

Property Band Normal Rate Additional Property Overseas Buyer
* An additional property purchased for less than £40k will attract 0% tax.
For purchases from £40k to £125k the rate will be 3% on full purchase price.
Less than £125,000 0% 3%* 5%*
£125,000 to £250,000 2% 5% 7%
£250,000 to £925,000 5% 8% 10%
£925,000 to £1,500,000 10% 13% 15%
Over £1,500,000 12% 15% 17%

(1) Rate applies to that portion of the purchase price. (2) Properties up to £40,000 are exempt from stamp duty. Properties between £40,000.01 & £125,000 will be charged stamp duty on the full purchase price.

How Do I Pay Stamp Duty

In reality, your solicitor or legal advisor will probably take care of this for you, ensuring that everything is paid on time. Some buyers will also add the SDLT to their mortgage loan, which requires speaking to your provider.

When Do I Pay Stamp Duty?

You have 30 days to pay Stamp Duty Land Tax from the date of completion or you risk a fine. Remember, legally, it’s your responsibility to ensure the stamp duty is paid on time. Always maintain your due diligence and ensure it’s being taken care of immediately after completion.

Stamp Duty Changes for Overseas Buyers

As of April 2021, non-UK residents purchasing a property in the UK will also be subject to an extra surcharge of 2% in what is called ‘the consideration’. If you’re not present in the UK for at least 183 days (6 months) during the 12 months before your purchase you are ‘not a UK resident’ for the purposes of SDLT.

In summary, non-UK residents will pay an extra 2% SDLT on any property purchase after April 2021, which also stacks with the 3% for an additional property. This would mean a non-UK resident buying an additional property after 1 April 2021 would pay an extra 5%. You can learn more in our ‘Investment Finance’ Guide.

Can I Reduce Stamp Duty Land Tax?

It is a criminal offence to evade stamp duty or to conspire to evade stamp duty. As stamp duty is only payable on the land purchase, removable fixtures and fittings such as wardrobes, sofas, fridges and carpets are not subject to SDLT and can be subtracted from the total property prices.

You’re exempt from SDLT if:

You’re a first-time buyer purchasing a residential property for £500,000 or less, as long as its occupied as the main residence. This SDLT relief is also extended to first-time buyers purchasing through approved shared ownership schemes, who pay SDLT in stages.

No money or payment changes hands for a land or property transfer

Property is left to you in a will

Property is transferred because of divorce or the dissolution of a civil partnership

You buy a freehold property for less than £40,000

You buy a new or assigned lease of fewer than 7 years, as long as the amount you pay is less than the residential or non-residential SDLT threshold

  • What is Stamp Duty?
  • Stamp Duty Rates 2021
  • How Do I Pay Stamp Duty
  • When Do I Pay Stamp Duty?
  • Stamp Duty Changes for Overseas Buyers
  • Can I Reduce Stamp Duty Land Tax?

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