Stamp duty calculator
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Stamp Duty:
Frequently Asked Questions
Quick answers to commonly asked questions about Stamp Duty.
Introduction: What is Stamp Duty?
Stamp Duty Land Tax (SDLT) or “Stamp Duty” for short, is a tax paid on property purchases in England and Northern Ireland. Paid by the buyer, it’s calculated as a % of the agreed sale price and is based on a tiered calculation depending on the value of the property.
Does Stamp Duty apply to everyone?
The short answer is yes. It doesn’t matter if you’re buying outright or with a mortgage, or a freehold or leasehold property, it’s still applicable in most cases. The main exception being first time buyers purchasing below £500,000. There is more info about that below.
What are the current Stamp Duty rates?
As of April 1, 2025, SDLT rates for residential property purchases in England and Northern Ireland are applied to each portion of of the total purchase price as follows:
Standard Residential Rates:
– Up to £125,000: 0%
– £125,001 to £250,000: 2%
– £250,001 to £925,000: 5%
– £925,001 to £1.5 million: 10%
– Over £1.5 million: 12%
First-Time Buyers:
– No SDLT on properties up to £300,000.
– 5% on the portion from £300,001 to £500,000.
– If the purchase price is over £500,000, you cannot claim the relief.
Additional Properties (e.g., second homes, buy-to-let):
– An additional 5% surcharge is payable on each band.
(Unless the property you are buying is replacing your main residence and your previous main residence was sold within 36 months of completing your new purchase).
Many properties in Berkshire have values exceeding £925,000, placing them in the higher SDLT brackets.
What is the Stamp Duty for high-value homes over £1 million?
For homes over £1 million, the stamp duty rates increase significantly, making it an important consideration for buyers in premium markets which is very much the case in East Berkshire.
The highest SDLT rates kick in for prime properties over £925,000:
– £925,001 to £1.5 million: 10%
– Over £1.5 million: 12%
Example Calculation:
For a property purchased at £1.25 million:
– 0% on the first £125,000 = £0
– 2% on the next £125,000 (£125,000 to £250,000) = £2,500
– 5% on the next £675,000 (£250,001 to £925,000) = £33,750
– 10% on the next £325,000 (£925,001 to £1.25 million) = £32,500
Total SDLT = £68,750
For properties exceeding £1.5 million, the 12% rate applies to the portion above this threshold.
Specific guidance for higher rates of SDLT can be found here.
Where can I get more information and look at SDLT in detail?
The Government website has detailed guidance relating to specific scenarios to help understand your potential liability.
It also contains a calculator which allows you to see a breakdown of the calculations for any planned purchase, as well as factor in second property ownership, company purchase, implications for non-UK residents and much more.
Are there any reliefs or savings available on Stamp Duty?
Aside from relief for first time buyers and relief for reclaiming stamp duty if you more to a new primary residence and sell your previous property within 36 months, there are potentially other reliefs available in specific circumstances.
Reliefs are often very complex and getting it wrong can be costly – either by unnecessarily over-paying or by not paying enough and ending up having to pay interest, incurring significant penalties or even becoming the centre of an HMRC enquiry.
If you think you have overpaid, the good news is you can typically apply for a rebate for up to 4 years after completing on your purchase.
We would always advise seeking expert advice on the subject and highly recommend engaging a tax specialist such as Capex Associates to ensure you explore all possibilities and implications.
Still have questions?
If you have any queries, feel free to let us know. We have years of experience and have seen various different scenarios over that time. We’re here to help!