Stamp duty calculator
Calculate Your Stamp Duty
Use our Stamp Duty Calculator to estimate your stamp duty. This easy-to-use tool will help you calculate the stamp duty fees for your property transactions. It provides precise calculations and an intuitive interface to help you understand the additional financial considerations when purchasing property.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax that must be paid to HMRC when you purchase land or property in England and Northern Ireland. The tax applies to properties valued over £40,000 for investors and over £250,000 for first-time home buyers or first homes. The stamp duty tax payable depends on the value of your property and whether it is your primary residence, an additional home, or a rental property. For single-home properties valued over £250,000 and additional properties of £40,000 or more, the stamp duty ranges from 3% to 15% based on the property’s value, use, and whether you already own other properties.
Factors Affecting Stamp Duty
In the case of property investments where the property will be an additional property in your portfolio, Stamp Duty will be a vital consideration. It’s a mandatory part of purchasing additional property in the UK. The only exemptions include if property is left to you in a will, as an outcome of a divorce or due to the dissolution of a civil partnership. Also, any freehold property worth less than £40,000.
Further factors affecting stamp duty include the value of your property, whether it will be your main residence or an investment, and whether you are a first-time buyer.
What Can Reduce Stamp Duty For Investors?
Stamp duty can be looked at strategically and there are some techniques that can make your costs more efficient. These considerations include how your property will be used and how you buy it.
Properties with different uses attract different stamp duty thresholds. Properties not used solely for residential occupancy, such as commercial or mixed-use developments, have lower stamp duty rates. Buy-to-let (BTL) properties can also improve your stamp duty rates, especially lower-value properties, as these often attract lower stamp duty taxes.
How you purchase the property counts; for instance, property purchases completed through a company structure may mitigate some stamp duty costs. Limited company property portfolios can facilitate tax efficiency, but we advise speaking to your accountant for further information.
