Stamp Duties Calculator
Stamp Duty Calculator on Residential First and Second House.
With our Stamp Duty Calculator, you can easily find out how much taxes you are going to pay on purchasing your Residential First and Second House in England. Using the calculator is easy as a pie. Just enter the value of the house you are interested in, click the option on for first or second house and get an immediate result.
What is a Stamp Duty?
Stamp Duty Land Tax is a lump-sum tax payable by the purchaser of a house or land in England. The payable rate depends on the property price and type (residential or commercial).
In England and Northern Ireland, you will pay the rate for the proportion of the property that’s at that rate.
It’s quite complex, therefore here’s an example to better illustrate how it works:
Let’s assume you’re buying a property for £500,000.
Nothing is payable below £125,000, which is £0.
You pay 2% on between £125,000 and £250,000, which is £2,500.
A 5% on the value of the property is payable above £250,000 and £500,000, which is ultimately £12,500.
As a result, in total this means you’ll pay £15,000 (£0 + £2,500 + £12,500).
Are you a first-time buyer buying a property worth up to £500,000?
One lucky news for you! First-time buyers pay zero stamp duty on the first £300,000 of any home costing up to £500,000 (and only 5% on any proportion between £300k and £500k). In that case, the new stamp duty rates for first-time buyers are:
- Up to £300,000 purchase price: 0% stamp duty
- £300,000.01 to £500,000: 5% (on that portion of the purchase price only)
If we go back the above example, the stamp duty will change as follows:
Below £300,000, you pay nothing, which is £0.
You pay 5% on the value of the property above £300,000, which is £10,000.
So in total, this means you’ll pay £10,000 (£0 + £10,000).
Important to realise, if you buy a first home costing more than £500,000, you won’t benefit from any change and will be buying under the standard system (see above).
Are you a first-time buyer?
A first-time buyer is someone who’s never owned a property, whether bought or inherited, anywhere in the world.
Therefore, if grandma left you her holiday house in England or in sunny Italy, although you might have sold it straight-away, you are not counted as a first-time buyer.
You are also not a first-time buyer even when you buy for the first time to let the property out.
What’s my rate again?
You pay a percentage of the cost, and the rate payable leaps up at a set of thresholds. Additionally, you only pay the proportion of the purchase price that’s actually above the thresholds at the higher rate.
People buying an additional property (ie, in addition to any they already own) will be penalised in the form of an extra stamp duty charge on any property costing more than £40,000.
Under stamp duty rules that took effect in 2014, you pay different rates for different proportions of the property price. This will mean that the following additional property stamp duty rates will apply on each portion of the purchase price on buy-to-let and second homes.
|PURCHASE PRICE||STAMP DUTY RATE ON FIRST PROPERTY (1)||STAMP DUTY RATE FOR ADDITIONAL PROPERTIES (1)|
|Up to £300,000||0%||See the table above as you will no longer be a first-time buyer (for additional properties)|
|£300,000.01 – £500,000||5%||Refer to the table above as you will no longer be a first-time buyer (for additional properties)|
|(1) Rate applies to that portion of the purchase price.|
How do I pay Stamp Duty?
For a full guide, please refer to our How to Buy Guide.
When you buy in England, you have 30 days from completion to pay Stamp Duty.
If you are not on time, you might have to pay interests on top… Therefore, better be punctual!
Your solicitor will assist you in this matter. They often require the money for the payment of the stamp duty to be wired them along with the money for purchasing the property.
However, it’s legally your responsibility to ensure your stamp duty/transaction tax is paid. If you are doing this yourself, click the questions to see the process. This process will avoid any delay.
Can I pay stamp duties with a mortgage?
By all means, you can, but there are also some adverse consequences. If you borrow more money from the bank, this means that you are going to pay more in interests on the borrowed capital. Considering a standard mortgage lasts 25 years, this means you might have to add an extra 10K to pay on the mortgage.
Obviously, if you have more questions in regards to Stamp Duties? Get in touch with one of our consultant today!