RWinvest Stamp Duty Calculator and Guide to Stamp Duty for Investors

Contents

How Much Stamp Duty Do I Need to Pay? 

What percentage is stamp duty tax for buy to live properties vs buy to let? And how much is the stamp duty tax for first-time buyers?  

This section offers information on how to calculate stamp duty tax with our helpful stamp duty calculator for 2022. 

How to Calculate Stamp Duty 

Stamp Duty can be calculated in two ways. You can either use a stamp duty calculator like the one below or follow a stamp duty formula and check a stamp duty table to calculate the costs yourself. 

If you’re interested in using a stamp duty calculator to calculate your stamp duty fees quickly, our buy to live and buy to let stamp duty calculators below can help you with calculating stamp duty more easily and effectively. 

Simply enter the value of the property you’re looking to buy, and select the type of purchase you’re making, and you can get a quick and simple answer to ‘how much is stamp duty in the UK?’ with our stamp duty calculator for buy to let and residential purchases. 

All you need to do is enter your property price, and we’ll generate your stamp duty prices for you. 

How to Work Out Stamp Duty  

If you’re asking what are the stamp duty thresholds in England and Northern Ireland, Wales, and Scotland, and wondering how much stamp duty do I need to pay as a buy to let investor, this section will help you. 

Keep reading for information on the different thresholds for stamp duty in the UK, with helpful tables displaying current stamp duty rates. 

How to Work Out Stamp Duty in England and Northern Ireland 

If you want to know how to work out stamp duty tax on purchases in accordance with the current rates, the below table of stamp duty prices will help you. 

Here is a guideline to the amount of percentage of stamp duty for investors and those buying a primary residence in England and Northern Ireland in 2023.  

What Is the Stamp Duty Threshold? 

The threshold for paying stamp duty on investment property purchases or buy to live second home purchases differs. 

You’ll pay Stamp Duty on the purchase of your main property costing more than £250,000 unless you’re a first-time buyer.

The threshold for paying stamp duty is £250,001 or higher for non-first-time buyers, after which amount buyers will be required to pay a stamp duty fee. 

If you’re buying an additional property, such as a second home, you must pay an extra 3% in Stamp Duty on top of the standard rates.

For example, if you’re a first-time buyer purchasing a house for £450,000.

You would pay:

• 0% on the first £250,000
• 5% on the portion from £250,001 and £450,000

So, your total SDLT would be £10,000.

How to Work Out Stamp Duty in Scotland and Wales 

So we know about stamp duty costs in England and Northern Ireland, but how much is stamp duty in the UK countries Wales and Scotland? 

Stamp duty taxes work a little differently in Scotland and Wales compared to England. In Scotland, stamp duty tax is referred to as land and buildings transaction tax (LLBT), and in Wales, stamp duty taxes are land transaction tax (LTT).  

Here, you can see the rates for the cost of stamp duty in Scotland. This table shows how much stamp duty you will pay on property purchases made in Scotland for land and buildings transaction tax. 

In this table, you can see the land transaction tax thresholds for those buying property in Wales. 

For a quick way to work out the cost of stamp duty in Wales, check out the Wales stamp duty calculator from the Welsh government website. 

When Do I Pay Stamp Duty and How Do I Do It? 

When Do You Start Paying Stamp Duty?  

So, when should you pay stamp duty tax? After you’ve purchased a property, your stamp duty payment will start immediately. You are required to pay your stamp duty fees within 14 days of buying a property. 

Use our buy to let and residential stamp duty calculator to work out how much this will be in advance to ensure you have the correct amount available. 

How Do I Pay Stamp Duty Costs UK? 

Paying Stamp Duty is easy when you have the know-how. A stamp duty land tax return should be sent to HMRC and paid within 14 days of completion of the property. 

Completion is when all contracts have been signed off, and you get your keys to enter the property. If you don’t pay within this time frame, you could be subject to interest rates or fines.  

When using solicitors, conveyancers, or agents to assist in property transactions, they may file an SDLT return to HMRC themselves and pay the stamp duty prices upon completion on the property on the buyer’s behalf. 

The tax would then be added to the solicitor fees to be paid by the buyer. 

What if I Cannot Cover Stamp Duty Costs? 

If you’re worried that you can’t cover the cost of stamp duty, it’s possible to borrow more money when you take out your mortgage. This way, you can use a loan to pay stamp duty tax’s substantial rates. 

However, the downside of doing this is that after a long repayment period, the initial price of stamp duty will accumulate interest and cost you more money in the long run.