How much tax will you have to pay when buying a property in the UK?

What is Stamp Duty?

‘Stamp Duty Land Tax’ is a tax due when buying property and land in the UK.

 

How is Stamp Duty calculated?

Since 4th December 2014, you will only pay the rate of tax on the part of the property price within each tax band. (This is similar to how income tax is calculated)

Changes from April 2016

Stamp Duty Land Tax is the tax that the government charges when you purchase a residential property. You can find how much Stamp Duty you will need to pay on your purchase by using our stamp duty calculator.

The Stamp Duty thresholds and rates that came into effect in December 2014 are as follows:
• £0 and up to £125,000 = 0%
• £125,001 and up to £250,000 = 2%
• £250,001 and up to £925,000 = 5%
• £925,001 and up to £1.5 million =10%
• Over £1.5m = 12%

As of April 2016, a 3% surcharge will apply to all second home and buy-to-let purchases over £40,000.

Purchase Price Bands (£) Rate of Stamp Duty
£0 – £125,000 0%
£125,001 – £250,000 2%
£250,001 – £925,000 5%
£925,001 – £1.5 million 10%
Over £1.5 million 12%
Purchase Price Bands (£) Rate of Stamp Duty
£0 – £40,000 0%
£40,001 – £125,000 3%
£125,001 – £250,000 5%
£250,001 – £925,000 8%
£925,001 – £1.5 million 13%
Over £1.5 million 15%