Stamp Duty Land Tax (SDLT) must be paid to HM Revenue and Customs when buying a residential property or land over a certain price in England, Wales and Northern Ireland.
Up until December 2014 Stamp Duty rates were based on a 'slab' system, with the amount being a percentage of the whole of the purchase price, with the total property value defining the percentage band. This system resulted in steep increases in stamp duty at the band thresholds and was thought to have a distorting effect on house prices.
Since December 2014 the rates are calculated using a cumulative banding system whereby a certain percentage is due on the amount of the property value above banded thresholds, resulting in a smooth increase in SDLT as the property price increases.
In April 2016 an increase in SDLT was applied to certain purchases, eg second-homes, resulting in a 3% higher rate across all bands.
In the November 2017 budget an immediate change to help First-Time Buyers was announced so that purchases up to £300,000 will attract zero SDLT and purchases between £301,000 and £500,000 will receive a £5,000 SDLT discount. (The SDLT on purchases above £500,000 remains unchanged).
In the November 2018 budget the First-Time Buyers scheme was extended to include purchases made under a Shared-Ownership scheme, back-dated to November 2017 (therefore you may be entitled to a refund if you bought a First-Time purchase between November 2017 and 2018).
On 8 July 2020 the Chancellor of the Exchequer announced a temporary reduction on stamp duty rates due to the Coronavirus. These rates apply to all property purchases completed between 8-July-2020 and 31-March-2021. These effectively override the 'First-Time Buyers' scheme and mean that all standard-rate purchases under £500,000 will not be liable for stamp duty.
Enter the property Purchase Price into the form below to calculate the Stamp Duty Land Tax (SDLT) due.