From 23rd September 2022, the first £250,000 of any residential property purchase by a UK resident will be exempt from Stamp Duty. This was previously £125,000 and is a temporary change until 31st March 2025.
Regardless of whether you are buying your first home, moving to a larger property or looking to secure an additional residence, you will have to pay Stamp Duty Land Tax (SDLT). There are many online calculators to determine how much Stamp Duty you will pay, but we always rely on the government’s HMRC calculator.
The following guide explains how stamp duty is calculated for first-time buyers, for those replacing their primary residence, those purchasing an additional property and for non-UK residents.
Who pays stamp duty in England and who is exempt?
UK residents purchasing a primary residence priced at £250,000 or under are exempt from stamp duty from 23rd September 2022. For properties priced over £250,000, some stamp duty will still be paid.
Where properties are priced over £250,000, some duty will be due on the difference between this figure and the total price. As with income tax, the rate is calculated proportionately in a ‘tiered’ structure, so the rate you’ll pay will depend on the total property price.
Stamp duty for first-time buyers:
From 23rd September 2022, first-time buyers will not pay stamp duty on the first £425,000 of any property. Tax bands for first-time buyers are as follows:
| Property value |
SDLT rate |
| Up to £425,000 |
Zero |
| The next £500,000 (the value between £425,001 to £925,000) |
5% |
| The next £575,000 (the value between £925,001 to £1.5 million) |
10% |
| The remaining amount (the value above £1.5 million) |
12% |
Buyers replacing their primary residence:
The stamp duty bands for those replacing a primary residence from 23rd September 2022 are as follows:
| Property value |
SDLT rate |
| Up to £250,000 |
Zero |
| The next £675,000 (the value between £250,001 to £925,000) |
5% |
| The next £575,000 (the value between £925,001 to £1.5 million) |
10% |
| The remaining amount (the value above £1.5 million) |
12% |
Stamp duty for second-home buyers and buy-to-let landlords:
From 23rd September 2022, the new rates for stamp duty are also applicable to second-home buyers and buy-to-let landlords. However, these groups will still have to pay the 3% additional homes levy that was introduced in April 2016. Second home and buy-to-let stamp duty rates are therefore as follows:
| Property value |
SDLT rate |
| Up to £250,000 |
3% |
| The next £675,000 (the value between £250,001 to £925,000) |
8% |
| The next £575,000 (the value between £925,001 to £1.5 million) |
13% |
| The remaining amount (the value between £1.5 million) |
15% |
Stamp duty for non-UK residents:
The amended rates for stamp duty are also applicable to people who are not resident in the UK. However, they will still have to pay the 2% non-UK resident surcharge that was introduced in April 2021. This means the current rates for this group are as follows:
| Property value |
SDLT rate |
| Up to £250,000 |
2% |
| The next £675,000 (the value between £250,001 to £925,000) |
7% |
| The next £575,000 (the value between £925,001 to £1.5 million) |
12% |
| The remaining amount (the value between £1.5 million) |
14% |
There are several factors used to determine whether a purchaser is considered a non-UK resident in relation to their purchase. For more information, please visit this page on the HMRC website.
How do I calculate how much stamp duty I owe?
Calculating stamp duty can be a little complex, so here’s an example to illustrate how it works:
For a property purchased at £700,000, no stamp duty would be paid on the first £250,000 with 5% due on £250,001 to £700,000. This would total £22,500 stamp duty.
How do I find out more?
For more information about stamp duty or the buying process our expert sales teams would be happy to help. Find your local Marsh & Parsons office.
You can also use one of the many online calculators, such as the HMRC calculator to determine the stamp duty you will pay.
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