How do I calculate the Stamp Duty that I have to pay?

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland.

You must pay Land and Buildings Transaction Tax in Scotland.  You must pay Land Transaction Tax in Wales.

Our SDLT guidance

For this guide, we are going to focus on SDLT on residential properties.

You must pay the tax when you:

• Buy a freehold property

• Buy a leasehold property

• Purchase a property through a shared ownership scheme

• Are transferred land or property in exchange for payment

The threshold is where SDLT starts to apply. If you buy a property for less than the threshold then there is no SDLT to pay.

 

Property purchases from 1 April 2021

The SDLT thresholds will be:

• £125,000 for residential properties

• £150,000 for non-residential land and properties

These thresholds are the same as they were before 8 July 2020.

 

First-time buyers

From 1 April 2021, you’ll get a discount (relief) that means you’ll pay less or no tax if both the following apply:

• you, and anyone else you’re buying with, are first-time buyers

• the purchase price is £300,000 or less

Rates from 1 April 2021

You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’).

 

Up to £125,000 0%

The next £125,000 (the portion from £125,001 to £250,000) 2%

The next £675,000 (the portion from £250,001 to £925,000) 5%

The next £575,000 (the portion from £925,001 to £1.5 million) 10%

The remaining amount (the portion above £1.5 million) 12%

 

Example

In May 2021 you buy a house for £275,000. The SDLT you owe will be calculated as follows:

0% on the first £125,000 = £0

2% on the next £125,000 = £2,500

5% on the final £25,000 = £1,250

Total SDLT = £3,750

Higher rates for additional properties

You’ll usually have to pay 3% on top of SDLT rates if buying a new residential property means you’ll own more than one.

Stamp Duty Calculator

To calculate how much Stamp Duty Land Tax you need to pay, you should complete the government calculator:

Stamp Duty Land Tax – GOV.UK (www.gov.uk)

We understand how confusing the process can be and will ensure you understand the process all of the way

Get in touch today to find out how we can help you!

info@qmortgages.co.uk01727 530 145

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