2017 Stamp Duty Calculator – UK Property and Buy-To-Let

Evaluate how much stamp duty you have to pay for property transactions, when you need to pay, and what the reformed stamp duty system means.

Contact Knight Frank's team of experts for guidance on the UK buying process.

What is Stamp Duty and do I need to pay it?

Stamp Duty Land Tax (SDLT) is a progressive tax paid when purchasing a freehold, leasehold or shared ownership residential property above a certain limit. If the property transaction is over £125,000 in England, Northern Ireland and Wales (separate Land and Buildings Transaction Tax in Scotland), then an SDLT must be paid including overseas buyers.

How to calculate the new Stamp Duty rate:

If you purchased a property for £850,000, you are not required to pay stamp duty on the first £125,000, however you are obliged to pay 2% on £125,000 to £250,000 and 5% above £250,000. (e.g. £800,000 - £250,000 = £600,000 x 0.05 = £30,000 + £2,500 = £32,500). As the property price increases, the payment rate rises depending on the tax bracket and the percentages growing as a higher price threshold is reached.

What changes have occurred to UK Stamp Duty since 2014?

New SDLT rates were introduced in 2014's Autumn Statement, introducing a sliding system based on thresholds and dependent on a property price. Before 2014, buyers were paying a rate based on the entire property purchase price. The new rates are now payable only on the portion of a property price which falls within each band. Under the new SDLT property over £925,000 - £1.5m will be taxed at a rate of 10% compared with 5% in 2014.

View historic SDLT rates. 

Buy-to-let and second homes Stamp Duty 2017

From April 2016, second home property buyers will have to pay an additional 3% on each stamp duty band. First time property buyers will be exempt.

*Properties under £40,000 are not subject to second home SDLT

*Updated 1st February 2017

Stamp Duty Tax Rates as of February 2017

When do you need to pay Stamp Duty?

Stamp duty must be paid 30 days from the date of completion and must be submitted to the HMRC. Should you fail to submit the SDLT, you may face fines and penalties.Your solicitor, agent, or legal adviser should take care of this for you and ensure you don't miss the deadline.

Can I reduce Stamp Duty?

As stamp duty is only payable on the land purchase, removable fixtures and fittings (i.e. freestanding wardrobes, sofas, fridges, curtains, etc.) are not subject to SDLT and can be subtracted from the total property price, and consequently decreasing the stamp duty. Everything 'attached' to property such as light switches count as part of the property and are subject to SDLT. If a seller is willing to leave certain possessions, you should agree to pay a reasonable amount between yourself and the vendor and subtract it from the agreed purchase price. This can be executed with the assistance of a tax lawyer or conveyancer.

Contact our London property experts who can assist and advise you on prime London areas in 2017 and guide you through the buying process.