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Stamp Duty Calculator and Guide to Stamp Duty for Investors 2023-24

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    Work Out How Much You Should Pay in Stamp Duty

    If you’re new to property investment, calculating stamp duty for investment property may not be something you’re familiar with.

    Like many other property-related terms, stamp duty tax is something that a beginner investor may not know much about. Even those buying a new home for non-investment purposes can often be left asking – what is stamp duty on property?

    If you’ve just recently entered the investment world then it’s completely understandable that 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 crucial to Property investment tips & advice and building a strong property portfolio.

    If you’re asking, ‘how much stamp duty will I pay?’ depending on the value of the property, or you want to learn more about additional stamp duty tax rates for buy-to-let investors, this is the guide for you!

    In this detailed guide to stamp duty, we offer you essential information on stamp duty for investors, along with tips on how to work out stamp duty on an investment property either by using our stamp duty calculator 2024 or by checking our stamp duty table containing the latest rates.

    For those looking at it specifically from an investment perspective, you can also check out the buy-to-let stamp duty calculator for an indication of the tax band applicable to different types of investment properties.

    In any case, if you want to learn more, simply keep scrolling to find out everything you need to know regarding UK stamp duty tax rates in 2024!

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    What Is Stamp Duty and Who Pays It?

    Stamp Duty, also known as Stamp Duty Land Tax (SDLT), is a tax that those in England and Northern Ireland are liable to pay when purchasing property for residential or investment purposes. In Scotland and Wales, stamp duty is known as Land and Buildings Transaction Tax and Land Transaction Tax respectively.

    Stamp duty tax is payable by anyone buying a property, but the cost of stamp duty tax is dependent on the purchase price of the property and the type of purchase that’s being made.

    If you’re a first-time buyer, for instance, you’ll only pay stamp duty tax on properties worth over a certain amount, which will exempt people most from having to pay the additional charge.

    The tax applies to both freehold and leasehold properties, whether or not you’re using a mortgage to pay for the property.

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      How Much Stamp Duty Do I Need to Pay?

      What percentage is the stamp duty tax for buy-to-live properties vs. buy-to-let? And how much is the stamp duty tax on your first home?

      This section offers information on how to calculate stamp duty for investment property and residential homes with our helpful stamp duty calculator 2024.

      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, the below buy to live and buy to let stamp duty calculators can help you calculate stamp duty more easily and accurately.

      Simply enter the value of the property you’re looking to buy and select the type of purchase you’re making to select the correct rate of stamp duty. This way, 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!

      Working 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 I need to pay as a buy-to-let investor, this section will help you.

      As mentioned above, stamp duty rates differ across different parts of the UK and they are indeed referred to in different terms as well. Therefore, the residential and buy-to-let stamp duty calculator for, say, England and Wales will give you different tax rates, so it’s important to know which rates apply to you.

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

      Alternatively, if you’re looking for a quick answer to how much tax you are liable to pay on investment property, take a look at our buy-to-let stamp duty calculator.

      What Is the Stamp Duty Threshold 2024?

      Across the UK, the threshold for paying stamp duty on investment property purchases or buy-to-live second home purchases differs from that of a main home.

      For buy to live properties in England and Northern Ireland, the threshold for paying stamp duty is £250,000 for non-first-time buyers, after which amount buyers will be required to pay a stamp duty fee of at least 3%.

      However, for first-time buyers, stamp duty does not have to be paid on purchases below £425,000 with a discounted rate of 5% on the portion £425,001 to £625,000, thanks to first-time buyer relief.

      For buy-to-let, the exemption threshold is £40,000, with the percentage of stamp duty owed increasing in conjunction with the property’s value.

      Stamp duty for investment property or an additional property of residence is payable once its value hits or exceeds the £250,000 mark, beginning at a rate of 3% and extending to a rate of 15% for properties with a value of over £1.5 million.

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        Calculating 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 standard rates in England and Northern Ireland, the below table of stamp duty prices will help you.

        In short, you will only pay stamp duty on a primary residence when the property is worth or exceeds £250,000 in value. If you own an additional residential property, you will typically pay a higher rate of stamp duty – a further 3% on the stamp duty rates for the main residence.

        Here is a guideline for the percentage of stamp duty for investors and those buying a primary residence in England and Northern Ireland in 2024.

         

        SDLT Rates for a Single Property

        Property ValueSDLT Rate
        £250,000 or lessExempt
        £250,001 - £925,0005% (applies to this portion only)
        £925,001 - £1.5 million10% (applies to this portion only)
        Over £1.5 million12% (applies to portion above £1.5 million)

        As mentioned, 3% on top of these rates will apply on an additional property.

        SDLT Rates for a First Home

         

        Property ValueSDLT Rate
        £425,000 or lessExempt
        £425,001 - £625,0005% (applies to this portion only)
        Over £625,000Not eligible for relief

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        Calculating Stamp Duty in Scotland and Wales

        So, now 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).

        Below 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.

        Land and Buildings Transaction Tax Rates in Scotland

        Notably, in December 2022, the Scottish Government increased the LLBT Additional Dwelling Supplement (ADS) – which is the stamp duty for investment property and secondary residences – from 4% to 6%. Savills have a LLBT calculator you can use to work out these rates for your purchase, and you can also use the table listed in this section of our blog. These rates are excluding ADS – this is important to keep in mind if you’re considering making a buy to let investment in the country.

         

        Residential LBTT Rates in Scotland (Excluding ADS)

        Property ValueLBTT Rate
        £145,000 or lessExempt
        £145,001 - £250,0002%
        £250,001 - £325,0005%
        £325,001 - £750,00010%
        Over £750,00012%

         

        Land Transaction Tax Rates in Wales

        The following table outlines the land transaction tax thresholds for those buying property in Wales which have now been in place since October 2022. Unlike in England, Scotland and Northern Ireland, there is currently no allowance for first-time buyers in Wales when it comes to paying LTT.

        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.

         

        LTT Rates in Wales for a Main Residence

        Property ValueLTT Rate
        £225,000 or lessExempt
        £225,001 - £400,0006% (applies to this portion only)
        £400,001 - £750,0007.5% (applies to this portion only)
        £750,001 - £1.5 million10% (applies to this portion only)
        Over £1.5 million12% (applies to portion above £1.5 million)

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

          At What Point Should 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 2024 to work out how much this will be in advance to ensure you have the correct amount available.

          How to Pay Stamp Duty in the 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 of 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 cover stamp duty rates that can serve to generate a significant expense.

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

          Looking to Purchase Buy to Let Property With RWinvest?

          We hope you’ve found our guide to stamp duty on investment property purchases useful and have utilised our stamp duty buy-to-let calculator to work out how much you need to pay in stamp duty tax.

          If you have any further questions about how the buy-to-let stamp duty rates apply to our investment opportunities, 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 while ensuring you are aware of and have all the relevant information on any added expenses – such as stamp duty tax – that may come your way.

          If you need further information on laws surrounding stamp duty for investors, or you have more questions on topics such as ‘When do you start paying stamp duty?’, it’s worth seeking the help of a financial adviser who can offer you detailed and informed advice.

          Alternatively, if you want to widen your knowledge of all things property, then be sure to check out our free in-depth guides!

          Here, you can learn about top UK investment areas in detail to help you decide on the best place to buy property and kickstart your investment journey.

          You can also learn more about the latest stamp duty facts in our guide to stamp duty on buy-to-let property.

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