Stamp Duty is paid at different rates, depending on the purchase price. For example, someone subject to Stamp Duty buying a property for £550,000 would pay no tax on the value of the property up to £500,000 and 5% tax on the property value between £500,001 and £550,000. In this case, total liability for Stamp Duty would be £2,500 giving an effective tax rate of 0.45%. This is a saving of £15,000 based on the Stamp Duty rates that were in place prior to the 8th July 2020.
Those subject to the additional rates of stamp duty rates will pay an extra 3% on top of the relevant standard rate band. In this example that would represent an extra £16,500, meaning the total stamp duty would be £19,000 giving an effective tax rate of 3.45%.
| Purchase price of property |
Rate of Stamp Duty
|
| £0 - £500,000 |
0% |
| £500,001 - £925,000 |
5% |
| £925,001 - £1,500,000 |
10% |
| Over £1.5 million |
12% |
* Properties under £40,000 are not subject to the additional SDLT rates
First-time buyers are entitled to relief for the first £300,000 of Stamp Duty on properties up to a value of £500,000.
For example, if you’re buying your first property for £350,000 you would pay:
- no Stamp Duty on the value of the property up to £300,000
- 5% tax on the value between £300,001 and £350,000.
In this case, the total amount of Stamp Duty would be £2,500, giving an effective rate of 0.7%.
For properties priced over £500,000, no relief is available and you would pay Stamp Duty on the full purchase price.
|
Purchase price of property
|
Rate of Stamp Duty
|
|
£0 - £500,000
|
0
%
|
|
£500,001 - £500,001
|
5
%
|
|
£500,001+
|
Standard rates apply (see below)
|
If you're buying your next home or buying a property valued at over £500,000 you would pay:
- no tax on the value of the property up to £125,000
- 2% tax on the property value between £125,001 and £250,000
- 5% tax on the property value between £250,001 and £550,000.
In this case, the total amount of Stamp Duty would be £17,500, giving an effective tax rate of 3.2%.
These rates currently apply to England, Wales and Northern Ireland
| Purchase price of property |
Rate of Stamp Duty
|
| £0 - £500,000 |
0% |
| £500,001 - £925,000 |
5% |
| £925,001 - £1,500,000 |
10% |
| Over £1.5 million |
12% |
* Properties under £40,000 are not subject to the additional SDLT rates
Stamp Duty is paid at different rates, depending on the purchase price. For example, someone subject to Stamp Duty buying a property for £550,000 would pay no tax on the value of the property up to £500,000 and 5% tax on the property value between £500,001 and £550,000. In this case, total liability for Stamp Duty would be £2,500 giving an effective tax rate of 0.45%. This is a saving of £15,000 based on the Stamp Duty rates that were in place prior to the 8th July 2020.
Those subject to the additional rates of stamp duty rates will pay an extra 3% on top of the relevant standard rate band. In this example that would represent an extra £16,500, meaning the total stamp duty would be £19,000 giving an effective tax rate of 3.45%.
| Purchase price of property |
Rate of Stamp Duty
|
| £0 - £500,000 |
0% |
| £500,001 - £925,000 |
5% |
| £925,001 - £1,500,000 |
10% |
| Over £1.5 million |
12% |
* Properties under £40,000 are not subject to the additional SDLT rates
