RWinvest Stamp Duty Calculator and Guide to Stamp Duty for Investors

Calculate Stamp Duty Rates with Stamp Duty Holiday and Discounts Included

Stamp Duty due: £0
Effective Rate: 0%

See Full Calculation below:

Tax Brand % Taxable Sum Tax
less than £500k 0% £0 £0
£500k to £925k 5% £0 £0
£925k to £1.5m 10% £0 £0
rest over £1.5m 12% £0 £0
Stamp Duty due: £0
Effective Rate: 0%

See Full Calculation below:

Tax Brand % Taxable Sum Tax
less than £500k 3% £250,000 £7500
£500k to £925k 8% £0 £0
£925k to £1.5m 13% £0 £0
rest over £1.5m 15% £0 £0
Stamp Duty due: £0
Effective Rate: 0%

See Full Calculation below:

Tax Brand % Taxable Sum Tax
less than £500k 0% £0 £0
£500k to £925k 5% £0 £0
£925k to £1.5m 10% £0 £0
rest over £1.5m 12% £0 £0

If you’re new to property investment, calculating stamp duty may not be something you’re too familiar with. Like many other property-related terms, if you’re new to the world of property investment, you may not know how to calculate stamp duty or understand how to work out stamp duty costs on an investment property. However, understanding stamp duty on buy to let property is a crucial tip when getting started in property investment.

In this detailed guide to stamp duty, we bring you information on stamp duty for investors, along with tips on how to calculate stamp duty either by checking our stamp duty table containing current rates or using our stamp duty calculator. We also cover details on the latest stamp duty prices in-line with the stamp duty holiday announced in July 2020. If you’re interested in learning more, scroll through this article to become an expert on all things stamp duty tax.

Stamp Duty is a tax that those in England or Northern Ireland are liable to pay after purchasing a residential property or piece of land, or a second home such as a buy to let investment property. The tax applies to both freehold and leasehold properties, whether or not you’re using a mortgage to pay for the property.

You only have to pay Stamp Duty when buying a property over a certain amount, and the higher the cost of the property, the more Stamp Duty you’ll have to pay. In Scotland and Wales, Stamp Duty tax laws don’t apply. Instead of Stamp Duty, Scotland has its own distinct Land and Buildings Transaction Tax with different rates, and Wales also uses a differently tiered system, so be sure to look into this further if purchasing property within these regions.

The stamp duty holiday is a new rule that was enforced in July 2020, set to last until March 2021. Under this rule, those who would normally need to pay stamp duty are able to save money on stamp duty costs, with huge savings to be made when calculating stamp duty. This applies to both buy to let investors and those buying a second buy to live home.

Stamp Duty can be calculated in two ways. You can either use a stamp duty calculator like the ones 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 calculator below can help you with calculating stamp duty more easily and effectively. All you need to do is enter your property price, and we’ll generate your stamp duty prices for you. We also have a new stamp duty calculator that helps you work out costs in line with the updated stamp duty holiday.

If you’d like to know how to work out stamp duty yourself, without the help of a stamp duty calculator, you can use the stamp duty table below. This stamp duty table shows you how much money in stamp duty fees you’re expected to pay. In line with the new stamp duty holiday, we’ve also outlined a stamp duty formula on a separate table, which takes the new rates into account.

 

Standard Stamp Duty Rates:Standard Stamp Duty Rates

 

 

 

 

 

 

 

Current Stamp Duty Rates (Covid-19 Stamp Duty Holiday):Stamp Duty Holiday Rates

The threshold for paying stamp duty on investment property purchases or buy to live second home purchases differs. For buy to live, the threshold for paying stamp duty is normally £125,000 for non-first-time buyers, after which amount buyers will be required to pay a stamp duty fee. For buy to let, the usual threshold is £40,000, with the percentage of stamp duty owed increasing as the property price rises.

However, with the new stamp duty holiday that’s set to last until March 2021, the new stamp duty tax threshold for buy to live purchases is £500,000. For buy to let purchases, the threshold has not changed, but the amount that investors will need to pay in stamp duty fees has. Buy to let investors will now only pay a stamp duty percentage of 3% on properties with a value of up to £500,000, which is a significant discount.

There are certain circumstances in which stamp duty fees can be avoided. Put simply, if you’re buying a buy to live property, whether you’re a first-time buyer or simply purchasing a second home after selling your first, you’ll be exempt from paying stamp duty tax on property with a value of up to £500,000 until March 2021.

First-time buyers, in general, have a lot more leeway in avoiding stamp duty costs. Under normal circumstances, first-time buyers don’t need to pay stamp duty prices on property with a value of less than £300,000. Therefore, the majority of first-time buyers will not need to pay the added cost of stamp duty taxes. Certain types of properties such as houseboats, mobile homes and caravans are also exempt from Stamp Duty.

What is Stamp Duty?

Stamp Duty is a tax that those in England or Northern Ireland are liable to pay after purchasing a residential property or piece of land, or a second home such as a buy to let investment property. The tax applies to both freehold and leasehold properties, whether or not you’re using a mortgage to pay for the property.

You only have to pay Stamp Duty when buying a property over a certain amount, and the higher the cost of the property, the more Stamp Duty you’ll have to pay. In Scotland and Wales, Stamp Duty tax laws don’t apply. Instead of Stamp Duty, Scotland has its own distinct Land and Buildings Transaction Tax with different rates, and Wales also uses a differently tiered system, so be sure to look into this further if purchasing property within these regions.

What is the Stamp Duty Holiday?

The stamp duty holiday is a new rule that was enforced in July 2020, set to last until March 2021. Under this rule, those who would normally need to pay stamp duty are able to save money on stamp duty costs, with huge savings to be made when calculating stamp duty. This applies to both buy to let investors and those buying a second buy to live home.

How to Calculate Stamp Duty

Stamp Duty can be calculated in two ways. You can either use a stamp duty calculator like the ones 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 calculator below can help you with calculating stamp duty more easily and effectively. All you need to do is enter your property price, and we’ll generate your stamp duty prices for you. We also have a new stamp duty calculator that helps you work out costs in line with the updated stamp duty holiday.

How to Work Out Stamp Duty

If you’d like to know how to work out stamp duty yourself, without the help of a stamp duty calculator, you can use the stamp duty table below. This stamp duty table shows you how much money in stamp duty fees you’re expected to pay. In line with the new stamp duty holiday, we’ve also outlined a stamp duty formula on a separate table, which takes the new rates into account.

 

Standard Stamp Duty Rates:Standard Stamp Duty Rates

 

 

 

 

 

 

 

Current Stamp Duty Rates (Covid-19 Stamp Duty Holiday):Stamp Duty Holiday Rates

What is the Stamp Duty Threshold?

The threshold for paying stamp duty on investment property purchases or buy to live second home purchases differs. For buy to live, the threshold for paying stamp duty is normally £125,000 for non-first-time buyers, after which amount buyers will be required to pay a stamp duty fee. For buy to let, the usual threshold is £40,000, with the percentage of stamp duty owed increasing as the property price rises.

However, with the new stamp duty holiday that’s set to last until March 2021, the new stamp duty tax threshold for buy to live purchases is £500,000. For buy to let purchases, the threshold has not changed, but the amount that investors will need to pay in stamp duty fees has. Buy to let investors will now only pay a stamp duty percentage of 3% on properties with a value of up to £500,000, which is a significant discount.

Can Stamp Duty be Avoided?

There are certain circumstances in which stamp duty fees can be avoided. Put simply, if you’re buying a buy to live property, whether you’re a first-time buyer or simply purchasing a second home after selling your first, you’ll be exempt from paying stamp duty tax on property with a value of up to £500,000 until March 2021.

First-time buyers, in general, have a lot more leeway in avoiding stamp duty costs. Under normal circumstances, first-time buyers don’t need to pay stamp duty prices on property with a value of less than £300,000. Therefore, the majority of first-time buyers will not need to pay the added cost of stamp duty taxes. Certain types of properties such as houseboats, mobile homes and caravans are also exempt from Stamp Duty.

Try Our FREE Stamp Duty Calculator with Standard Rates

Stamp Duty due:
Effective Rate: 1%

See Full Calculation below:

Tax Brand % Taxable Sum Tax
less than £125k 0
£125k to £250k 2 £125,000 £2,500
£250k to £925k 5 £0 £0
£925k to £1.5m 10 £0 £0
rest over £1.5m 12 £0 £0
Stamp Duty due: £0
Effective Rate: 0%

See Full Calculation below:

Tax Brand % Taxable Sum Tax
less than £125k 3% £0 £0
£125k to £250k 5% £125,000 £2,500
£250k to £925k 8% £0 £0
£925k to £1.5m 13% £0 £0
rest over £1.5m 15% £0 £0
Stamp Duty due: £0
Effective Rate: 0%

See Full Calculation below:

Tax Brand % Taxable Sum Tax
less than £300k 0 £0 £0
£300k to £500k 5 £0 £0
£500k to £925k 8 £0 £0
£925k to £1.5m 13 £0 £0
rest over £1.5m 15 £0 £0

Cost of Stamp Duty in Scotland and Wales

Stamp duty taxes work a little differently in Scotland and Wales compared to in 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). Below, you can see the usual rates for the cost of stamp duty in Scotland and Wales.

Stamp Duty Scotland

 

 

 

 

 

 

 

 

Stamp Duty Wales

 

 

 

 

 

 

 

 

 

In Scotland and Wales, a tax break has also been introduced, with different thresholds compared to England’s stamp duty tax. In Scotland, buy to live buyers will only pay tax on property with a value of £250,000, while buy to let investors will be required to pay 4% tax on anything up to the same amount. In Wales, the same tax rate applies for buy to live purchases of less than £250,000, while buy to let purchases will incur a tax of 3% (but 6.5% between £180,001 and £250,000).

Paying Stamp Duty is easy when you 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 into the solicitor fees to be paid by the buyer.

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.

Stamp duty fees are different for overseas investors. From 1st April 2021, non-UK residents buying a UK investment property will be required to pay a 2% stamp duty surcharge on top of the existing rate of tax, dependant on the value of the property. The start date of April 2021 has been arranged to follow the current stamp duty holiday which ends in March of the same year.

After you’ve purchased a property, your stamp duty payment will start immediately. You’re required to pay your stamp duty fees within 14 days of buying a property. Therefore, you should use our buy to let and residential stamp duty calculator to work out how much this is going to be in advance to ensure you have the correct amount available.

How and Where do I Pay Stamp Duty Prices?

Paying Stamp Duty is easy when you 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 into the solicitor fees to be paid by the buyer.

What if I Can't 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.

Stamp Duty for Investors from Overseas

Stamp duty fees are different for overseas investors. From 1st April 2021, non-UK residents buying a UK investment property will be required to pay a 2% stamp duty surcharge on top of the existing rate of tax, dependant on the value of the property. The start date of April 2021 has been arranged to follow the current stamp duty holiday which ends in March of the same year.

When Does Stamp Duty Start?

After you’ve purchased a property, your stamp duty payment will start immediately. You’re required to pay your stamp duty fees within 14 days of buying a property. Therefore, you should use our buy to let and residential stamp duty calculator to work out how much this is going to be in advance to ensure you have the correct amount available.

If you have any further questions about buy to let stamp duty rates or you’ve used our stamp duty calculator on a BTL investment listed on our website and want to find out more, please don’t hesitate to get in touch. We can offer any necessary guidance and help you move forward with your buy to let investment.

If you need further information on laws for stamp duty for investors, it’s worth seeking the help of a financial adviser who can offer you some detailed advice.

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