Advice guide centre

What is stamp duty and how much will it cost?

What is stamp duty?

Stamp duty is the shorthand reference for Stamp Duty Land Tax (SDLT) and is a form of tax that is paid when you purchase property or land above a certain price threshold in England or Northern Ireland. Remember that if you purchase land or property in Scotland or Wales, there are equivalents of this tax that will still need to be paid, so make sure you have budgeted for this accordingly. You can find out more about these equivalent taxes here.

Stamp Duty Holiday

Announced back in July, the stamp duty holiday has already helped countless home-movers save money, by reducing the amount of stamp duty land tax that is payable as part of every property purchase. 

- Advertisement -

Prior to the holiday being announced, you were eligible to pay for stamp duty on any property over £125,000, or if you were a first-time buyer, on any property over £300,000.

The stamp duty holiday has raised this threshold to £500,000 so, if you’re looking to trade up, you may well be able to save a fair amount of money on your move by completing your purchase before the holiday ends on 31st March 2021.

For a quick view of how savings vary by region, take a look at our useful breakdowns here.

Stamp Duty Calculator

Use our stamp duty calculator to work out how much you could save by purchasing a property before the stamp duty holiday ends on 31st March 2021.

Simply select which type of buyer you are from the dropdown menu, enter the price of the property you’re looking to purchase and hit the ‘calculate’ button.

Stamp Duty Calculator

Please note: These estimates are provided as illustrative figures for guidance only and cover only England and Northern Ireland. Rightmove is not authorised to give financial advice; the above calculator is not intended to be financial advice and should not be relied upon when making financial decisions. Please seek advice from a specialist financial provider.

How Stamp Duty Is Calculated

If you buy a property before 31st March 2021

You’ll need to complete your purchase to be eligible, but it will mean that you don’t need to pay stamp duty on the first £500,000 of the property price. If the property you are buying is under this amount, then you will not need to pay any stamp duty. If the property is over £500,000 you will still be eligible to pay stamp duty on the remaining amount at the following rates:

If this will be your only home (either because you’re a first-time buyer or because you’re selling an existing home):

Property or lease premium or transfer valueStamp Duty Rate
Up to £500,000Zero
The remaining amount £500,001 to £925,0005%
The remaining amount £925,001 to £1.5 million10%
The remaining amount above £1.5 million12%

If this will be an additional home or property that you own, the stamp duty rates are slightly different:

Property or lease premium or transfer valueStamp Duty Rate
Up to £500,000Up to 3%
The remaining amount £500,001 to £925,0008%
The remaining amount £925,001 to £1.5 million13%
The remaining amount above £1.5 million15%

If you buy a property on or after 1st April 2021

Once the stamp duty holiday has finished, the thresholds for tax due will be lowered, meaning that the cost of stamp duty will increase again.

It’s too early to know whether the government will want to return to the same levels pre-holiday or whether they’ll introduce further measures to help home-overs save money, however, our calculator uses the figures pre-holiday as this is the most likely outcome come 31st March 2021 when the stamp duty holiday ends.

If you are a first-time buyer, buying a property for the first time:

Property or lease premium or transfer valueStamp Duty Rate
Up to £300,000Up to 0%
The remaining amount £300,001 to £500,0005%
The remaining amount £500,001 to £925,0005%
The remaining amount £925,001 to £1.5million10%
The remaining amount above £1.5 million12%

If you are a home-mover, selling an existing property in order to buy your new one:

Property or lease premium or transfer valueStamp Duty Rate
Up to £125,000Zero
The remaining amount £125,001 to £250,0002%
The remaining amount £250,001 to £925,0005%
The remaining amount £925,001 to £1.5m10%
The remaining amount above £1.5 million12%

If you are keeping an existing property you already own, making the new property an additional one:

Property or lease premium or transfer valueStamp Duty Rate
Up to £125,0003%
The remaining amount £125,001 to £250,0005%
The remaining amount £250,001 to £925,0008%
The remaining amount £925,001 to £1.5m13%
The remaining amount above £1.5 million15%

Found this useful? Share it