Stamp Duty Calculator and Guide to Stamp Duty for Investors 2023

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 property 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 getting started in property investment 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 2023 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 2023!

What Is the Stamp Duty Threshold 2023?

Across the UK, the threshold for paying stamp duty on investment property purchases or buy to live second home purchases differs.

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.

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 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.

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 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 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 2023.

How to Work Out 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. This is important to keep in mind if you’re considering making a buy to let investment in the country.

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.

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.