Stamp duty calculator
Use our free Stamp Duty Calculator to get an instant breakdown of your SDLT liability, based on your purchase price and other factors (e.g. primary residence, second home etc). Enter your property value and instantly see the correct rates applied automatically.
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Frequently Asked Questions
Find answers to commonly asked questions about stamp duty.
Introduction: What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax paid on property purchases in England and Northern Ireland. It applies to both freehold and leasehold properties, whether you’re buying outright or with a mortgage. For homes over £1 million, the stamp duty rates increase significantly, making it an important consideration for buyers in premium markets like Marlow.
What are the current stamp duty rates (Until March 31, 2025)?
As of now, the SDLT rates for residential property purchases in England and Northern Ireland are:
– Up to £250,000: 0%
– £250,001 to £925,000: 5%
– £925,001 to £1.5 million: 10%
– Over £1.5 million: 12%
Note: First-time buyers currently pay no SDLT on properties up to £425,000 and a reduced rate up to £625,000.
What are the upcoming changes to Stamp Duty from April 1, 2025?
Effective April 1, 2025, the UK government is implementing changes to SDLT rates and thresholds. These adjustments are designed to impact various segments of the property market, including first-time buyers and purchasers of high-value homes.
Key Changes:
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.
– Standard rates apply above £500,000.
Additional Properties (e.g., second homes, buy-to-let):
– An additional 3% surcharge on each band.
These changes are particularly relevant in Marlow, where property values often exceed £925,000, placing them in the higher SDLT brackets.
What is the stamp duty for high-value homes over £1 million?
Until March 31, 2025:
SDLT Rates for Properties Over £1 Million:
– £925,001 to £1.5 million: 10%
– Over £1.5 million: 12%
Example Calculation:
For a property purchased at £1.2 million:
– 0% on the first £250,000 = £0
– 5% on the next £675,000 (£250,001 to £925,000) = £33,750
– 10% on the next £275,000 (£925,001 to £1.2 million) = £27,500
Total SDLT = £61,250
For properties exceeding £1.5 million, the 12% rate applies to the portion above this threshold.
After April 1, 2025
SDLT Rates for Properties Over £1 Million:
– £925,001 to £1.5 million: 10%
– Over £1.5 million: 12%
Example Calculation:
For a property purchased at £1.2 million:
– 0% on the first £125,000 = £0
– 2% on the next £125,000 (£125,001 to £250,000) = £2,500
– 5% on the next £675,000 (£250,001 to £925,000) = £33,750
– 10% on the next £275,000 (£925,001 to £1.2 million) = £27,500
Total SDLT = £63,750
For properties exceeding £1.5 million, the 12% rate applies to the portion above this threshold.
What Will The Impact of SDLT Changes on the Premium Property Market Be?
Pre-April 2025: Anticipated Surge in Transactions
The impending increase in SDLT rates is expected to lead to a surge in property transactions as buyers aim to complete purchases before the April 1 deadline. This rush may drive up demand, potentially increasing property prices in the short term. Estate agents have reported a notable rise in agreed property sales towards the end of 2024, indicating buyers’ eagerness to avoid higher taxes.
Post-April 2025: Potential Market Slowdown
After the new rates take effect, the property market may experience a slowdown. The higher SDLT liabilities could deter potential buyers, especially for high-value homes. This may lead to longer selling times and could put downward pressure on property prices. Analysts suggest that the increased costs may particularly impact first-time buyers and investors, potentially reducing demand.
Impact on High-Value Homes in Marlow
For properties in Marlow valued over £1 million, the SDLT changes are significant. For example, purchasing a £1.2 million home after April 1, 2025, would incur higher SDLT due to the adjusted thresholds and rates. This increased tax burden may influence buyer decisions, potentially cooling demand in the high-value segment of the market.
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