KIS Bridging Loans
Call us FREE on
0800 644 6555
Call Us
8am to 10pm - 7 days a week
Simple to Use
Stamp Duty Calculator
with July 2020 Government updates
Find out the cost of stamp duty for both residential and commercial property purchases, anywhere in the UK
Purchase Price: 
Please Select
Property Location: 
Please Select
Property Type: 
First Time Buyer? 
Purchasing After 
31st March 2021? 
 
Note: For Buy to Let or Second Homes, duty only applies on property £40,000 and above

Our Stamp Duty Calculator is intended as a Guide Only. Please confirm with your Solicitor the exact charge for Stamp Duty and any possible variations for the location of the property to be purchased.

 
Price Threshold Rate Breakdown
Range 0% £0
Range 0% £0
Range 0% £0
Range 0% £0
Range 0% £0
Range 0% £0
Sub Total £0
Surcharge 4% £0
Total Stamp Duty £0
Increase on Purchse 0%
Overall Purchase Cost £0

Stamp Duty Calculator

Stamp Duty Reduction due to Covid19

New temporary Stamp Duty Land Tax (SDLT) rules for England, Northern Ireland, Scotland, and Wales are in effect until 31st March 2021.

In England and Northern Ireland the threshold for paying Stamp Duty Land Tax has been raised with effect from 8 July 2020 from £125,000 to £500,000 for residential property purchases.

In Scotland, the threshold for paying Land and Building Transaction Tax (LBTT) has been raised with effect from 15 July 2020 from £145,000 to £250,000 for residential property purchases.

In Wales, the threshold for paying Land Transaction Tax (LTT) has been raised with effect from 27 July 2020 from £180,000 to £250,000 for residential property purchases.

Everything else remains the same, including the 3% surcharge (4% surcharge for Scotland) for second homes and investment properties which is still charged on the full purchase price.

However, in England and Northern Ireland the threshold increase to £500,000 does still apply for second home and investment property purchases, which means savings on stamp duty costs of up to £15,000 per property are available.

Unfortunately, in Scotland and Wales the new thresholds do not apply for second home and investment property purchases.

How to use our stamp duty calculator

  1. Enter the purchase price of the property

    The calculator will automatically add any necessary commas.

  2. Select the location of the property that you wish to purchase.

    There are 4 choices: England, N.Ireland, Scotland and Wales.

    This is required because Scotland has abolished Stamp Duty Land Tax (SDLT) and replaced it with Scottish Land and Buildings Transaction Tax (LBTT) and Wales has replaced SDLT with Land Transaction Tax (LTT). They both work similarly to SDLT but have slightly different bandings. England and Northern Ireland have the same Stamp Duty Land Tax.

  3. Select the property type, you have 4 options

    Residential - Please select this if you are buying the property to live in yourself.

    If you have selected England/N.Ireland and residential, you will need to select whether you are a first time buyer or not. This is because the bandings are different for first time buyers, including those purchasing their first home through an approved shared ownership scheme.

    Second Home: Please select this option if you are purchasing a new residential property and you already own one or more residential properties. This will allow for the 3% surcharge. 

    Buy to Let: Please select this option if you are buying an investment property with the intention of renting the property out to tenants. This will allow for the 3% surcharge. 

    Commercial - This option calculates stamp duty based on the commercial price bands.

     

    Click Calculate

    The calculator will show:

    Total Tax to Pay: The amount of tax that will be charged in £s, including Price Bandings
    Increase on Purchase: The amount of stamp duty as a percentage
    Overall Purchase Cost: The Purchase Price + Stamp Duty

What is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax is a lump sum tax charged on property and land purchased in the UK. The amount of tax payable depends on the purchase price of the property and whether it is for residential or for non-residential use. The way in which the amount of Stamp Duty payable is calculated for residential property was reformed in December 2014.

You will pay Stamp Duty in the following circumstances:

  • The purchase of a freehold property
  • The purchase of a new or existing leasehold property
  • The purchase of a property through a shared ownership scheme
  • The transfer of land or property in exchange for payment

What is the stamp duty for First-Time buyers?

Covid 19 Stamp Duty Changes

With effect from 8 July 2020 to 31 March 2021 the new temporary £500,000 threshold for Stamp Duty Land Tax will apply to first time buyers in England and Northern Ireland and will replace the current First Time Buyers SDLT arrangements.

Purchase price Stamp Duty rate Tax to pay
0 0% £0
£500,001 - £925,000 5% £0 - £21,250
£925,001 - £1,500,000 10% £21,250 - £78,750
Over £1,500,000 12% £78,750 +

After 31 March 2021 arrangements for first time buyers will revert to the previous arrangements, where first time buyers purchasing a residential property for £300,000 or less will pay no Stamp Duty Land Tax (SDLT).  This includes those purchasing their first home through an approved shared ownership scheme.

From 31 March 2021 first time buyers purchasing a property between £300,001 and £500,000 will pay stamp duty at 5% (on the amount of the purchase price that is over £300,000).

First time buyers purchasing a property over £500,000 will pay stamp duty at the normal rate.

This measure applies to England and Northern Ireland and does not apply to Scotland or Wales.

Purchase price Stamp Duty rate Tax to pay
0 0% £0
£300,001 - £500,000 5% £0 - £10,000
£500,001 - £925,000 5% £10,000 - £31,250
£925,001 - £1,500,000 10% £31,250 - £88,750
Over £1,500,000 12% £88,750 +

Stamp Duty Land Tax (SDLT) - England / N.Ireland

Residential Bandings - One and only home

Covid 19 Stamp Duty Changes

With effect from 8 July 2020 to 31 March 2021 the new temporary £500,000 threshold for Stamp Duty Land Tax will apply to residential purchases in England and Northern Ireland.

The table below shows how much tax you would be required to pay if you were purchasing your only property to live in before 31 March 2021.

Purchase price Stamp Duty rate Tax to pay
0 0% £0
£500,001 - £925,000 5% £0 - £21,250
£925,001 - £1,500,000 10% £21,250 - £78,750
Over £1,500,000 12% £78,750 +

If you are completing your purchase after 31 March 2021 the table below shows how much tax you would be required to pay if you were purchasing your only property to live in:

Purchase price Stamp Duty rate Tax to pay
Up to £125,000 0% £0
£125,001 - £250,000 2% £0 - £2,500
£250,000 - £925,000 5% £2,500 - £36,250
£925,001 - £1,500,000 10% £36,250 - £93,750
Over £1,500,000 12% £93,750 +

What is the stamp duty for Second Home or Buy to Let?

If you are buying an additional residential property, or you are buying a property with a partner who already owns a property, you will have to pay a stamp duty surcharge of 3%.

This applies if the property is a buy to let investment, a holiday home, or just another property you have if you work away from the family home.

Failure to disclose that you already own a property can result in a large fine and would be viewed as fraud.

The 3% surcharge is not charged for on properties where the purchase price is below £40,000.

Covid 19 Stamp Duty Changes

From 8 July 2020 to 31 March 2021 the new SDLT thresholds will apply to the stamp duty surcharge in England and Northern Ireland (as set out in the table below).  Please note the temporary LBTT thresholds in Scotland and the temporary LTT thresholds in Wales do not apply to the stamp duty surcharges in Scotland and Wales.

England and Northern Ireland

Purchase price Stamp Duty rate Tax to pay
Up to £500,000 3% £15,000
£500,001 - £925,000 8% £15,000 - £49,000
£925,001 - £1,500,000 13% £49,000 - £123,750
Over £1,500,000 15% £123,750 +

After 31 March 2021 the rates will revert to their original level as shown in the table below.

Purchase price Stamp Duty rate Tax to pay
Up to £125,000 3% Up to £3,750
£125,001 - £250,000 5% £3,750 - £7,500
£250,000 - £925,000 8% £7,500 - £61,500
£925,001 - £1,500,000 13% £61,500 - £136,250
Over £1,500,000 15% £136,250 +

 

What happens with Stamp Duty if I'm buying a new home and have not sold my current one?

If you buy a property to move into before selling your existing home for any reason, the surcharge will be payable, but you can apply for a refund if you sell the first home within 3 years.

Exception - If you wish to buy another property and are going through divorce proceedings, you will be exempt from the surcharge, so you can go ahead with a new purchase without incurring a surcharge before the divorce is finalised.

How can I claim back the Stamp Duty surcharge after buying a second property?

You can apply for this refund through HM Revenue and Customs (HMRC) in one of two ways;

  • Filling out their online form on the Gov.uk website, or;
  • Filling in the form, printing it and sending it to them via post.

For properties sold on or before 28th October 2018 - HMRC must receive your refund request within 3 months of the sale of the property, or within 12 months of the filing date of the tax return relating to the new residence, whichever is later.

For properties sold on or after 29th October 2018 - HMRC must receive your refund request within 12 months of the sale of the property, or within 12 months of the filing date of the tax return relating to the new residence, whichever is later.

You may still be able to claim a refund if you purchased your new home on or after 1st January 2017 and were unable to sell your first home within 3 years because of exceptional circumstances that were outside of your control.

Reasons could be:

  • The impact of the Coronavirus pandemic.
  • An action taken by a public authority which prevented the sale.

As soon as you are able to sell the property, you must do so in order to apply for the refund.

What information will I need to claim back the Stamp Duty surcharge?

To request a refund, you will need to have the following information:

  • Your details.
  • The main buyer’s details, if they are not your own.
  • Details of the property that the 3% surcharged was charged on, which will include the date of purchase and the unique transaction reference number for the SDLT.
  • Details of the property you have sold, which will include the date of sale, the address and some of the buyer’s details.
  • The amount of SDLT paid on the second property.
  • The amount of SDLT you are requesting a refund of.

How long does it take to receive the refund?

From the date HMRC receive the application, the average turnaround time is 15 days. However, this can be longer if you don’t provide all the information required.

What is the stamp duty for Commercial or Mixed Use properties?

Stamp Duty Land Tax is calculated for transactions involving non-residential property and also for land purchases in the same way as for residential properties, but using different bandings.

  • Shops
  • Offices
  • Agricultural land
  • Forests
  • Land and other property which will not be used as a dwelling
  • When 6 or more properties are purchased in a single transaction

This also applies to mixed use property where it is used both as a dwelling and for non-residential purposes, for example a pub with living accommodation or a shop with its own flat. The amount of stamp duty payable applies to that portion of the sale price:

Purchase price Stamp Duty rate Tax to pay
Up to £150,000 0% £0
£150,000-£250,000 2% £0 - £2,000
Over £250,000  5% £2,000 +

 

How does Stamp Duty work for leasehold properties?

Residential and non-residential properties can be either freehold or leasehold.

The amount of Stamp Duty Land Tax (SDLT) you will have to pay when you purchase a leasehold property depends on whether it is an existing lease (an assigned lease) or a new lease.

Existing/Assigned Leases

When you purchase a property that has an existing lease, the lease will be assigned to you as the new owner.

You will have the pay a lump sum amount for the lease assignment, and then you will pay Stamp Duty on that amount.

In most cases, the same Stamp Duty rates and bandings that apply to freehold properties will also apply here, for both residential and non-residential purchases.

New Leases

If you purchase a property with a new lease, the amount of Stamp Duty that you will pay depends on the premium (the amount payable for the lease) and any rent due.

With nominal rent: If you purchase a property with a new lease, pay a premium and pay nominal rent (a token amount far below the actual cost) then you will only pay SDLT on the amount of the premium.

The Stamp Duty rates and bandings are the same for leasehold properties as they are for freehold, so use the same figures to calculate the amount you have to pay on the premium.

With more than nominal rent: If you purchase a property with a new lease and pay a premium, but more than nominal rent, you will pay SDLT on both the premium and the value of the rent owed over the term of the lease at net present value (NPV).

Land Transaction Tax (LTT) - Wales

Welsh Stamp Duty Changes

Since 1st April 2018, Stamp Duty Land Tax (SDLT) was replaced with Land Transaction Tax (LTT) in Wales.

Like Stamp Duty, Land Transaction Tax will be payable on the purchase of property or land over a certain price. New tax rates and bands have been created to support the new system.

These changes have been made for the following reasons;

  • To increase the efficiency and effectiveness of paying tax.
  • To simplify the tax and make it fairer for home buyers and businesses.
  • To focus on Welsh priorities and needs.

Residential Property Bandings

Covid 19 Stamp Duty Changes

With effect from 27 July 2020 the threshold for paying Land Transaction Tax (LTT) has been raised from £180,000 to £250,000 for residential property purchases in Wales.

The table below shows how much tax you would be required to pay if you were purchasing your only property to live in before 31 March 2021.

Purchase price Stamp Duty rate Tax to pay
Up to £250,000 0% £0
£251,000 - £400,000 5% £0 - £7,500
£401,000 - £750,000 7.5% £7,500 - £33,750
£751,000 - £1,500,000 10% £33,750 - £108,750
Over £1,500,000 12% £108,750 +

The table below shows the tax rates if you are buying your first residential property after 31 March 2021.

Purchase price Stamp Duty rate Tax to pay
Up to £180,000 0% £0
£181,000 - £250,000 3.5% £0 - £2,450
£251,000 - £400,000 5% £2,450 - £9,950
£401,000 - £750,000 7.5% £9,950 - £36,200
£751,000 - £1,500,000 10% £36,200 - £111,200
Over £1,500,000 12% £111,200 +

Higher Residential Tax Rates (Second Home / Buy to Let) Bandings

The tables below reflects the rates you will pay if you are buying a residential property and you already own one or more residential properties. These rates are an additional 3% on top of the main residential rates. Please note the new temporary LTT thresholds for residential properties do not apply for the 3% surcharge on second homes / buy to lets.

If you are purchasing a property to replace an existing one, the higher rates may not apply.

Purchase price Stamp Duty rate Tax to pay
Up to £180,000 3% Up to £5,400
£181,000 - £250,000 6.5% £5,400 - £9,950
£251,000 - £400,000 8% £9,950 - £21,950
£401,000 - £750,000 10.5% £21,950 - £58,700
£751,000 - £1,500,000 13% £58,700 - £156,200
Over £1,500,000 15% £156,200 +

 

What happens with Land Transaction Tax if I buy my new home before selling my current one?

You will be required to pay the 3% surcharge if you are purchasing your new home before selling your existing one, however, you will be able to claim this money back if you sell the existing property within 3 years of buying the new property. You can do this using the online form on the Gov.wales website.

Commercial and Mixed-Use Property Bandings

The table below reflects the rates you will pay if you are buying a commercial/non-residential property, such as, shops, offices, pubs or agricultural land. These rates will also apply to ‘mixed use’ properties, when a residential and commercial property are part of the same transaction, such as, a flat above a shop.

Purchase price Stamp Duty rate Tax to pay
Up to £150,000 0% £0
£151,000 - £250,000 1% £0 - £1,000
£251,000 - £1,000,000 5% £1,000 - £38,500
Over £1,000,000 6% £38,500 +

Land and Buildings Transaction Tax (LBTT) - Scotland

Stamp Duty has been abolished in Scotland and replaced with a Land and Buildings Transaction Tax (LBTT) which is very similar. The main difference is that the bandings are slightly different.

Residential Bandings

Covid 19 Stamp Duty Changes

With effect from 15 July 2020 the threshold for paying Land and Buildings Transaction Tax (LBTT) has been raised from £145,000 to £250,000 for residential property purchases in Scotland.

The table below shows how much tax you would be required to pay if you were purchasing your only property to live in before 31 March 2021.

Purchase price Stamp Duty rate Tax to pay
Up to £250,000 0% £0
£251,000 - £325,000 5% £0 - £37,500
£325,001 - £750,000 10% £37,500 - £80,000
Over £750,000 12% £80,000 +

The table below shows the tax rates if you are buying your first residential property after 31 March 2021.

Purchase price Stamp Duty rate Tax to pay
Up to £145,000 0% £0
£145,000 - £250,000 2% £0 - £2,100
£250,000 - £325,000 5% £2,100 - £5,850
£325,000 - £750,000 10% £5,850 - £48,350
Over £750,000 12% £48,350 +

First Time Buyers - Scotland

Covid 19 Stamp Duty Changes

With effect from 15 July 2020 to 31 March 2021 the new temporary £250,000 threshold for LBTT will apply to first time buyers in Scotland and will replace the current First Time Buyers LBTT arrangements.

Purchase price Stamp Duty rate Tax to pay
Up to £250,000 0% £0
£251,000 - £325,000 5% £0 - £37,500
£325,001 - £750,000 10% £37,500 - £80,000
Over £750,000 12% £80,000 +

After 31 March 2021 arrangements for first time buyers will revert to the previous arrangements, where first time buyers purchasing a residential property for £175,000 or less will pay no LBTT.

First Time Buyer Bandings after 31 March 2021

Purchase price Stamp Duty rate Tax to pay
Up to £175,000 0% £0
£175,000 - £250,000 2% £0 - £1,500
£250,000 - £325,000 5% £1,500 - £5,250
£325,000 - £750,000 10% £5,250 - £47,750
Over £750,000 12% £47,750 +

Second Home / Buy to Let Bandings

For second homes, buy to let properties, holiday homes and if you are buying a property with a partner who already owns a residential property, a 4% surcharge ‘Additional Dwelling Supplement (ADS)’ is added to properties with a purchase price of £40,000 and above in Scotland.

Please note the new temporary LBTT thresholds for residential properties do not apply to the 4% surcharge on second homes / buy to lets.

Purchase price Single Property Additional Property
(Only for property £40,000 and above)
Tax to pay
£40,000 to £145,000 0% 4% Up to £4,200
£145,001 - £250,000 2% 6% £4,200 - £10,500
£250,000 - £325,000 5% 9% £10,500 - £17,250
£325,000 - £750,000 10% 14% £17,250 - £76,750
Over £750,000 12% 16% £76,750 +

 

What happens with Land and Buildings Transaction Tax if I buy my new home before selling my current one?

If you purchase your new home before selling your existing home then you will be required to pay the Additional Dwelling Supplement. However, if the sale of the existing home takes place before the tax return is submitted for the purchase of the new home, no Additional Dwelling Supplement is due.

If this is not the case and you sell your existing home after the tax return is submitted for the new house purchase, then you will be able to claim back the ADS you paid as long as the existing home is sold within 18 months. Details of how to make your claim can be found on the renvenue.scot website.

Commercial / Mixed Use Property Bandings

This is calculated in the same way as in England, Wales and Northern Ireland, but the bandings and the LBTT % rate is different.

Purchase price Stamp Duty rate Tax to pay
Up to £150,000 0% £0
£150,000-£250,000 1% £0 - £1,000
Over £250,000 5% £1,000 +

A Brief History of Stamp Duty

Stamp Duty originally began on 28th June 1694 and was introduced to help cover the costs of the war with France. The charge was initially applied to paper documentation and has also covered other items such as playing cards, cheques and newspapers. It was so successful that stamp duty has continued to the present day through various different Stamp Acts.

The Finance Act 2003 introduced Stamp Duty Land Tax which is a lump sum tax charged on property and land transactions in the UK.

Until December 2014, a certain percentage of the full purchase price would be payable, depending on which bracket the purchase price fell into:

Previous residential Stamp Duty banding


Purchase price Percentage Tax to pay
Up to £125,000 0% £0
£125,001-£250,000 1% £1,250-£2,500
£250,001-£500,000 3% £7,500-£15,000
£500,001-£1,000,000 4% £20,000-£40,000
£1,000,001-£2,000,000 5% £50,000-£100,000
Over £2,000,000 7% £140,000+

The steep increase in the amount of tax payable over each boundary has caused the prices of properties valued at the higher end of each band to stagnate. For example, a property worth £270,000 would have been much more likely to sell for £250,000 as the additional £20,000 would have cost the buyer an extra £5,600 in stamp duty (3% of £270,000 = £8,100 and 1% of £250,000 =£2,500)

The reformed Stamp Duty is calculated in a similar way to income tax. The percentages payable have changed and still increase with each higher purchase price bracket, however the tax will no longer be applied to the full purchase price. Instead, buyers will pay the tax for each band.

FAQs

How much is Stamp Duty in the UK 2020?

There are different bandings for Stamp Duty and the amount you’ll pay depends on the purchase price and location of the property. If you purchase a house in England or Northern Ireland between 8th July 2020 and 31st March 2021, you will not pay any Stamp Duty where the purchase price is £500,000 or below due to the government’s Stamp Duty temporary reduced rates.

How much is Stamp Duty for first-time buyers 2020?

Stamp Duty for first-time buyers in 2020 is currently the same as it is for previous homeowners due to the government’s Stamp Duty temporary reduced rates. First-time buyers will not pay any Stamp Duty when purchasing a property in England or Northern Ireland for £500,000 or less between 8th July 2020 and 31st March 2021. After 31st March 2021, SDLT will revert back to the previous arrangements where first-time buyers will not pay any Stamp Duty on house purchases of £300,000 or below.

Who is classed as a first-time buyer?

To qualify as a first-time buyer, you must have never owned a property before under any circumstances. This includes properties abroad, investment properties, shared ownership properties, properties bought jointly with someone else, or properties that you inherited or were gifted. To qualify for the first-time buyer relief, you must be purchasing the property as your own main residence and not as an investment property.

Will you get Stamp Duty relief if only one of you is a first-time buyer?

No, to qualify for the first-time buyer Stamp Duty relief, then both you and your partner need to be first-time buyers. If one of you has owned a property before then you will not qualify for first-time buyer Stamp Duty relief.

How much is Land Transaction Tax in Wales 2020?

Between 27th July 2020 and 31st March 2021, you will pay no Land Transaction Tax for residential property purchases of £250,000 or below in Wales. For second homes and investment properties, the temporary reduced rates do not apply and a 3% surcharge will be added to property purchases.

How much is Land and Buildings Transaction Tax in Scotland 2020?

Between 15th July 2020 and 31st March 2021, you will pay no Land and Buildings Transaction Tax on residential property purchases of £250,000 or below in Scotland. These same rules also apply to first-time buyers. For second homes and investment properties, the temporary reduced rates do not apply and a 4% surcharge will be added to property purchases for £40,000 and above.

How much is Stamp Duty for commercial and mixed-use properties 2020?

In England and Northern Ireland, Stamp Duty for commercial property purchases is calculated in the same way as for residential and investment properties but using different bandings. The temporary reduced rates do not apply to commercial property purchases, so the bandings remain the same. You will pay no Stamp Duty on commercial properties with a purchase price of £150,000 or below.

Do you have to pay Stamp Duty every time you move?

Every time you purchase a property you will have to pay Stamp Duty unless you are exempt for any reason.

Who is exempt from paying Stamp Duty?

You do not have to pay Stamp Duty if:

  • You are left property in a will.
  • No money or other form of payment is exchanged for a land or property transfer.
  • Property is transferred due to a divorce or dissolution of a civil partnership.
  • You are purchasing a property (and don’t own any others) for under £500,000 between 8th July 2020 and 31st March 2021.
  • You are a first-time buyer and purchasing a property for £500,000 or less between 8th July 2020 and 31st March 2021.
  • You are a first-time buyer and purchasing a property for £300,000 or less after 31st March 2021.

Do you have to pay more Stamp Duty on second homes and investment properties?

If you’re purchasing a second home, holiday home or buy to let/investment property then you will have to pay a 3% surcharge on top of the usual Stamp Duty rate. This includes when you are buying with a partner who already owns a property.

What is classed as a second home?

Any property that you purchase, whilst already owning a home, is classed as a second home and Stamp Duty second home rates apply. This includes property that you’ve purchased to use while you work away from home, holiday homes, and buy to let properties.

Can you claim back Stamp Duty?

When you purchase a second home (or your next home before selling your current one) you will be charged a 3% surcharge on top of the usual Stamp Duty rate. If you sell your first home within three years, however, you can claim a refund for that 3% surcharge. You must claim within three months of selling your first home.

Can you claim back Land Transaction Tax in Wales?

When you purchase a second home or buy to let property in Wales, then you will have to pay a Land Transaction Tax surcharge of 3%, on top of the usual LTT bandings. However, if you sell your previous property within 3 years of buying the new one, then you can claim this money back and get a refund for the surcharge.

Can you claim back Land and Buildings Transaction Tax in Scotland?

When you purchase a second home or buy to let property in Scotland, then you will have to pay and Land and Buildings Transaction Tax Additional Dwelling Supplement (surcharge) of 4%. However, if you sell your first property within 18 months of buying the new one, then you can claim the ADS back.

How does the Stamp Duty relief work?

The government’s Stamp Duty temporary reduced rates are in place from 8th July 2020 to 31st March 2021. They have increased the Stamp Duty threshold to £500,000 which means you won’t pay any Stamp Duty if you’re buying a property in England or Northern Ireland for £500,000 or less during that timeframe. The temporary relief also applies to first-time buyers as well as to second homes and investment properties, however the 3% surcharge is still payable.  

Does the Stamp Duty holiday apply to second homes?

Yes, the Stamp Duty temporary reduced rates do apply to second homes and investment properties, however the usual 3% surcharge still applies. This means that you won’t pay the usual Stamp Duty rate on property purchases of £500,000 or below, you will only pay the 3% meaning the Stamp Duty payable is greatly reduced.

How do you pay Stamp Duty?

Your solicitor will deal with the Stamp Duty return forms and make the payment on your behalf (you’ll transfer the money to them), but you can do it yourself if you want to. However, as the homeowner, you will be responsible for making sure everything is submitted on time regardless of who’s handling it.

Can you pay Stamp Duty in instalments?

No, Stamp Duty must be paid in full within 14 days of the completion date of your property purchase. If you do not pay the full amount within 14 days, HMRC can charge late payment penalties and interest.

Can you add Stamp Duty to your mortgage?

You can’t add Stamp Duty to your mortgage as it has to be paid in one lump sum within 14 days of completion, but if you have a larger deposit amount then you can use some of this to pay the Stamp Duty and request to borrow more on your mortgage. But bear in mind that this will increase your mortgage debt and will cost you more in interest in the long run.

How much Stamp Duty do Limited Companies pay?

If you purchase a property via a limited company you will pay Stamp Duty at the normal rate along with the 3% surcharge, even if it is the first property purchased by the company.  The temporary reduced rates for Stamp Duty will also apply to limited companies.