Stamp Duty (SDLT) Calculator

What is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax (SDLT) is a tax imposed on property and land purchases in England and Northern Ireland. Buyers must pay SDLT when purchasing residential properties above certain price thresholds. This tax applies to both freehold and leasehold properties, and whether you’re buying outright or with a mortgage.

Current SDLT rates (as of 2024)

For residential properties:

Up to £250,000: 0%

£250,001 to £925,000: 5%

£925,001 to £1.5 million: 10%

Over £1.5 million: 12%

For first-time buyers (relief on purchases up to £625,000):

Up to £425,000: 0%

£425,001 to £625,000: 5%

For additional properties (such as second homes or buy-to-let):

Up to £250,000: 3%

£250,001 to £925,000: 8%

£925,001 to £1.5 million: 13%

Over £1.5 million: 15%

For non-residential properties:

Up to £150,000: 0%

£150,001 to £250,000: 2%

Over £250,000: 5%

Key Points About SDLT:

Thresholds and rates: SDLT rates depend on the purchase price of the property, with different thresholds and rates for standard residential purchases, first-time buyers, and additional properties.

First-time buyers relief: First-time buyers purchasing a residential property up to £625,000 benefit from relief, paying no SDLT on the first £425,000 and a reduced rate up to £625,000.

Additional properties surcharge: Buying an additional property incurs a 3% surcharge on top of the standard rates.

Exemptions and reliefs: Certain transactions, like transfers due to divorce or separation, may be exempt from SDLT or eligible for relief.

Payment and filing: SDLT must be paid within 14 days of completing the property purchase, and an SDLT return must be filed with HM Revenue and Customs (HMRC).

How is stamp duty land tax (SDLT) calculated?

Stamp Duty Land Tax (SDLT) is calculated based on the purchase price of the property you are buying. The tax rates are tiered, meaning different portions of the property’s price are taxed at different rates.

Here’s an example calculation for a property priced at £600,000:

First £250,000 at 0%: £250,000 x 0% = £0

Next £350,000 (i.e., £600,000 – £250,000) at 5%: £350,000 x 5% = £17,500
Total SDLT = £0 + £17,500 = £17,500

SDLT Calculation for First-Time Buyers

First-time buyers benefit from SDLT relief on properties up to £625,000. The rates are:

Up to £425,000: 0%

£425,001 to £625,000: 5%

For a property priced at £500,000 for a first-time buyer:

First £425,000 at 0%: £425,000 x 0% = £0

Next £75,000 (i.e., £500,000 – £425,000) at 5%: £75,000 x 5% = £3,750

Total SDLT = £0 + £3,750 = £3,750

SDLT Calculation for Additional Properties

If you are buying an additional property (such as a second home or buy-to-let), there is a 3% surcharge on top of the standard rates. The rates are:

Up to £250,000: 3%

£250,001 to £925,000: 8%

£925,001 to £1.5 million: 13%

Above £1.5 million: 15%

For a second property priced at £600,000:

First £250,000 at 3%: £250,000 x 3% = £7,500

Next £350,000 (i.e., £600,000 – £250,000) at 8%: £350,000 x 8% = £28,000

Total SDLT = £7,500 + £28,000 = £35,500

SDLT Calculation for Non-Residential Properties

For non-residential or mixed-use properties, the rates are:

Up to £150,000: 0%

£150,001 to £250,000: 2%

Above £250,000: 5%

For a non-residential property priced at £400,000:

First £150,000 at 0%: £150,000 x 0% = £0

Next £100,000 (i.e., £250,000 – £150,000) at 2%: £100,000 x 2% = £2,000

Remaining £150,000 (i.e., £400,000 – £250,000) at 5%: £150,000 x 5% = £7,500

Total SDLT = £0 + £2,000 + £7,500 = £9,500

Using an SDLT Calculator

To simplify the process, you can use an SDLT calculator. These calculators require the following information:

Purchase price of the property

Whether you are a first-time buyer

If the property is an additional home or buy-to-let

By entering these details, the calculator will provide the exact SDLT amount based on the latest rates and rules.

For personalised advice and to ensure accuracy, especially for complex transactions, consult with a property solicitor or tax advisor.

When is SDLT Due?

Stamp Duty Land Tax (SDLT) must be paid to HM Revenue and Customs (HMRC) within 14 days of completing the purchase of your property. This completion date is when the property legally changes ownership, not the date of exchange of contracts.

Key Points About SDLT Payment:

Deadline: The SDLT payment is due within 14 calendar days after the completion of your property purchase.

SDLT return: Along with the payment, you must submit an SDLT return to HMRC within the same 14-day period. This return includes details about the property transaction and the calculated SDLT owed.

Solicitor’s role: Typically, your solicitor or conveyancer will handle the SDLT return and payment process on your behalf. They will calculate the SDLT due, submit the return, and ensure the tax is paid to HMRC on time.

Penalties and interest: If you fail to submit the SDLT return or pay the tax within the 14-day deadline, you may face penalties and interest charges. Penalties can increase the longer the delay persists.

Exemptions and reliefs: If your transaction qualifies for any exemptions or reliefs (e.g., first-time buyer relief), these should be claimed when submitting the SDLT return.
Steps to Ensure Timely SDLT Payment:

Engage a solicitor early: Hire a solicitor or conveyancer early in the property buying process. They will guide you through the SDLT requirements and handle the paperwork.

Budget for SDLT: Ensure you have the necessary funds available to cover the SDLT payment by the completion date.

Confirm submission: After the completion, confirm with your solicitor that the SDLT return has been submitted and the payment has been made to HMRC.

Keep records: Retain copies of the SDLT return and proof of payment for your records.

For further details or if you need assistance with SDLT matters, it’s advisable to consult your solicitor or reach out to HMRC directly.

Are there any SDLT exemptions or reliefs?

Stamp Duty Land Tax (SDLT) has several exemptions and reliefs that can reduce or eliminate the amount of tax you need to pay on property transactions. Understanding these can help you save money during the property-buying process. Here are the main exemptions and reliefs available:

First-Time Buyer Relief

First-time buyers purchasing a residential property for £625,000 or less can benefit from SDLT relief:

• Up to £425,000: 0% SDLT
• £425,001 to £625,000: 5% SDLT
  If the property price exceeds £625,000, the standard SDLT rates apply to the entire purchase price.

Inheriting property

No SDLT is due when you inherit property. However, if you decide to buy out other beneficiaries’ shares, SDLT may apply to the amount paid.

Charity relief

If a property is transferred to a registered charity and used for charitable purposes, the transaction is exempt from SDLT.

Right to Buy transactions

If you purchase your home under the Right to Buy scheme, any discount you receive on the property’s market value is not subject to SDLT. However, SDLT is payable on the discounted purchase price.

Compulsory purchase orders

If a property is bought under a compulsory purchase order (e.g., for infrastructure projects), there are special provisions for SDLT, potentially reducing the liability.

Property purchased by registered social landlords

Registered social landlords may be exempt from SDLT when purchasing property to provide social housing.

Zero-carbon homes

Though rare, newly built zero-carbon homes costing up to £500,000 were previously exempt from SDLT. Check current regulations as these exemptions can change.

Relief for certain lease transactions

Certain leasehold transactions can be exempt from SDLT, particularly if the lease term is short or the rent is low. Specific criteria apply, so consult a professional for details.

Transfers of property due to divorce or dissolution of civil partnership

When a property is transferred as part of a divorce or dissolution of a civil partnership, SDLT is not payable.

Applying for reliefs and exemptions

To claim any of these exemptions or reliefs, you must ensure the appropriate sections of the SDLT return are completed accurately. Often, your solicitor or conveyancer will handle this process for you, ensuring all applicable reliefs are claimed.

For personalised advice and confirmation of eligibility, consult a tax advisor or solicitor. It’s essential to understand the specific criteria and provide all necessary documentation to HM Revenue and Customs (HMRC).

How do I use an SDLT calculator?

Using an SDLT (Stamp Duty Land Tax) calculator is a straightforward process that helps you estimate the amount of tax you’ll owe when purchasing property in England or Northern Ireland. Here’s a step-by-step guide:

Step-by-step guide

Find a Reliable SDLT Calculator:

You can find SDLT calculators on various financial, real estate websites and the HM Revenue and Customs (HMRC) website. Ensure you use a reputable source to get accurate results.

Gather Necessary Information

Before you start, collect the following details:

Purchase price: The total price of the property you are buying.

Property type: Whether the property is residential, non-residential, or mixed-use.

Buyer status: Whether you are a first-time buyer or purchasing an additional property.

Special circumstances: Any applicable reliefs or exemptions (e.g., first-time buyer relief, multiple dwellings relief).

Enter the purchase price

Input the total purchase price of the property into the calculator.

Specify buyer status

Indicate whether you are a first-time buyer, buying an additional property, or buying as part of a company. This information affects the SDLT calculation as first-time buyers and additional properties have different rates.

Review the calculation

Once all the information is entered, the calculator will provide an estimate of the SDLT due. Review the breakdown to understand how the tax is calculated across different portions of the purchase price.

Double-check with a professional

While SDLT calculators provide a good estimate, it’s always wise to confirm the results with your solicitor or tax advisor, especially if your transaction is complex or involves multiple reliefs.