What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax which you must pay when you purchase property or land in the UK costing more than £125,000. The amount of stamp duty you pay is based on the overall price of the property. You do not pay stamp duty when you sell a property however if it is an investment property it may be subject to capital gains tax (CGT).
From April 2016 anyone purchasing an additional home or buy to let property will have to pay an additional 3% in each stamp duty band. If you live in Scotland stamp duty has been abolished however you may need to pay Land and buildings transaction tax (LBTT).
How is my stamp duty paid?
If you have instructed a conveyancing solicitor for you property purchase they will (in most cases) submit the Stamp Duty Land Tax return on your behalf. However please be aware that it is your responsibility to ensure that the Stamp Duty has been paid within 30 days of completion.
There are also some circumstances where Stamp Duty is not payable or can be reduced, including if you are divorcing or separating from your spouse and transfer a portion of the property value over to them. However if you exchange properties with someone else you will both have to pay stamp duty on the property you receive based on its market value. A full list of stamp duty exemptions and reliefs can be found on the HMRC website.
How does the stamp duty calculator work?
The stamp duty calculator estimate the overall cost of Stamp Duty Land Tax (SDLT). Our calculator provides an indication only. Your solicitor or tax consultant will advise you on the exact amount of Stamp Duty that must be paid upon completion.