Stamp Duty Calculator
Stamp Duty is an unavoidable tax on buying your home. Yet many people still apply the ‘ostrich’ method to working out how much they’ll have to pay. If they can’t see it, it won’t affect them, right?
Bad news; it’s time to open those peepers, people. If your home is worth more than £125,000*, you’ll have to pay the Revenue, too. However, it’s not straight forward. There are several bands of payment and each ‘slice’ of your total bill is proportionate to those segments.
To make this process a little less painful, we’ve made it easy for you to work out your Stamp Duty bill. Enter the value of the home you’re about to buy and hit ‘calculate’. The answer will appear in an instant beneath the ‘calculate’ button. And that’s it.
Stamp Duty Rates if you’re buying your first home
You can claim a discount (relief) so you don’t pay any tax up to £300,000 and 5% on the portion from £300,001 to £500,000. If the price is over £500,000, you follow the rules for people who’ve bought a home before.
Stamp Duty on second (or more) homes
If you’re buying an additional home, rates are higher and kick in earlier. You’ll pay Stamp Duty on any additional home >£40,000. Rate are also 3% higher than those in the table for additional residences.
Calculate your stamp duty
For those who prefer to work it out themselves, here are the current Stamp Duty rates (December 2014):
How to work out Stamp Duty
As alluded above, the percentage of Stamp Duty you pay works on a sliding scale. The best way to demonstrate is with an example.
Imagine you pay £280,000 for your home. That’s the value that HMRC uses to work out your Stamp Duty liability.
You don’t pay Stamp Duty on how much you borrow from the lender. That’s because your mortgage amount will have your deposit deducted from the sale price of the home. You pay tax on the full value of the property.
For the example, that £280,000 price falls in the 5% bracket (>£250,000 but <£925,000). But you don’t pay a straight 5%. The breakdown works like this:
- On the first £125,000, you pay 0% – so you owe £0.00 for that part;
- the next ‘slice’ of your home value – from £125,001 to £250,000 – falls in the 2% bracket;
- the value of your home spans the whole £125,000 parameter, thus it’s a straight 2% of the full quota here. You pay £2,500 for this bit;
- the final £30,000, to take you from £250,000 to the home value of £280,000, falls in the 5% bracket;
- only that £30,000 is subject to the 5%, a sub-total of £1,500 for that section;
- that gives you a grand total of £0 + £2,500 + £1,500 = £4,000 Stamp Duty.
Plain as mud? Yep, that’s why we put the calculator there. Stamp Duty table figures are correct as of July 2019.