Conveyancing
Oct 27th, 2022

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New Stamp Duty rates

Victoria CranwellResidential property specialist, Victoria Cranwell, explains the new Stamp Duty rates for residential purchases in England.

Victoria is available on 01225 462871. Alternatively, you can contact her by email, or by completing the Contact Form at the foot of this page.

Conveyancing quotes are also available online.

One of the few measures to have survived the reversals of September’s now infamous ‘mini budget’ is the change to Stamp Duty rates.

Stamp Duty – more properly, Stamp Duty Land Tax (SDLT) – is a significant budgeting consideration for many homebuyers. SDLT can add tens of thousands of pounds to the cost of moving home.

Stamp Duty explained

The amount of SDLT you pay in England depends on the purchase price and whether you are:

  • A first time buyer.
  • Buying an additional property.
  • A UK resident.

Although different rules apply in Wales and Scotland, the rules in Northern Ireland are the same as for England.

First time buyer Stamp Duty

From 23rd September 2022, first time buyers pay:

  • 0% on the first £425,000;
  • 5% on the portion between £425,001 and £625,000.

If the purchase price exceeds £625,000, first time buyer relief does not apply, and the rates are the same as for non-first time buyers.

For a purchase price of £525,000, a first time buyer pays £425,000 at 0% and £100,000 at 5%. Total SDLT = £5,000.

Stamp Duty for non-first time buyers

If this is your next house purchase, you pay:

  • 0% on the first £250,000;
  • 5% on the portion between £250,001 and £925,000;
  • 10% on the portion between £925,001 and £1,500,000; and
  • 12% above £1,500,000.

For a purchase price of £700,000, a buyer pays £250,000 at 0% and £450,000 at 5%. Total SDLT = £22,500.

Additional property Stamp Duty

If the property is an additional property, such as a second home or buy-to-let, the SDLT payable is an extra 3% on top of the standard rates:

  • 3% on the first £250,000;
  • 8% on the portion between £250,001 and £925,000;
  • 13% on the portion between £925,001 and £1,500,000; and
  • 15% above £1,500,000.

Again, for a purchase price of £700,000, a purchaser of an additional property would pay £250,000 at 3% and £450,000 at 8%. Total SDLT = £43,500.

Stamp Duty for non-UK residents

SDLT rates for non-UK residents are 2% higher across the board than for UK residents.

Stamp Duty calculator

In some situations and for certain types of property, the SDLT calculation is more complicated. Whatever your scenario, use the handy Stamp Duty calculator on the government’s website.

Victoria Cranwell