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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

First announced on 8th July 2020, the stamp duty holiday was initially due to end on 31st March 2021, but there is now a tapered extension until 30th September 2021.

This extension 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. 

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 temporarily raised this threshold to £500,000 until 30th June 2021, so, if you’re looking to trade up, you may save a fair amount of money on your move if you can complete your purchase before then.

From 1st July until the end of September 2021, the nil rate threshold will be reduced to £250,000, before returning to the usual threshold of £125,000 on 1st October 2021.

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.

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

Please note: the tables below reflect the Stamp Duty Land Tax (SDLT) thresholds in England and Northern Ireland applicable until 30th June 2021. Different percentage bands now apply to purchases completed between 1st July and 30th September. We are currently updating these tables.

If you buy a property before 30th June 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%

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