Research & insight article

Stamp Duty Calculator

Changes from April 2016

Stamp Duty Land Tax is the tax that the government charges when you purchase a residential property. You can find how much Stamp Duty you will need to pay on your purchase by using our stamp duty calculator.

The Stamp Duty thresholds and rates that came into effect in December 2014 are as follows:
• £0 and up to £125,000 = 0%
• £125,001 and up to £250,000 = 2%
• £250,001 and up to £925,000 = 5%
• £925,001 and up to £1.5 million =10%
• Over £1.5m = 12%

As of April 2016, a 3% surcharge will apply to all second home and buy-to-let purchases over £40,000.

Stamp Duty Calculator

Standard rate
Purchase Price Bands (£) Rate of Stamp Duty Breakdown
£0 - £125,000 0%
£125,001 - £250,000 2%
£250,001 - £925,000 5%
£925,001 - £1.5 million 10%
Over £1.5 million 12%

The Stamp Duty for buy-to-let and second home purchases from April 2016
Purchase Price Bands (£) Rate of Stamp Duty Breakdown
£0 - £40,000 0%
£40,001 - £125,000 3%
£125,001 - £250,000 5%
£250,001 - £925,000 8%
£925,001 - £1.5 million 13%
Over £1.5 million 15%

In his Autumn Statement this afternoon, George Osborne announced big changes to the Stamp Duty system which will have an immediate impact on all buyers of UK property.

Under the new system, which comes into effect at midnight tonight, buyers of properties valued under £937,500 will pay less Stamp Duty tax than the old/current system, but those buying above this figure will have to pay more.

To see how much tax you would need to pay under the new system, click on the calculator below:


If you would like a valuation on your home to see how the reforms affect you CLICK HERE

The Stamp Duty threshold plays an important role in how properties are valued and marketed. The previous system distorted the market by making it very unattractive to buy a property for a price just above the stamp duty thresholds of £250,000, £500,000, £1m, £2m because the entire value of the purchase was taxed at one rate – this was referred to as a slab system.

The reforms announced today mean that the barriers created by these thresholds are removed. Home buyers will now be charged in a tiered system and, as a result, they will only pay the higher rate of tax on the proportion of the purchase price over the threshold. For example, if someone purchased a property for £600,000 they would be charged 0% tax on the first £125,000, 2% on the next £125,000 and 5% on the final £350,000 – bringing the total tax due to £20,000. Under the old system, they would have had to pay £24,000 tax (I.e.  4% of £600,000).

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Nick has more than 20 years’ experience within the property research arena.

Nick Barnes

Nick Barnes

St Magnus House

020 3040 8406