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Stamp duty: How much will I pay?

Stamp duty: How much will I pay?

Stamp duty changes were brought in to effect in the UK from April 2016.

The Government introduced an additional 3% rate of Stamp Duty Land Tax (SDLT) on purchases of all additional properties such as buy to lets and second homes.

Because stamp duty is tiered, you will pay a different stamp duty rate on different portions of the property value. The change was made as the Government wanted to show their commitment to supporting first-time buyers.


Stamp duty rules

Any person now purchasing a property in addition to their main residence will pay an additional…

  • 3% SDLT on the first £125,000
  • 5% on £125,000 – £250,000
  • 8% on £250,000 – £925,000
  • 13% on £925,000 – £1.5m
  • 15% on the portion over £1.5m


Stamp duty cost example

For example, if you purchase a second property for £360,000 you would pay the following in SDLT:

  • 3% up to £125,000 = £3,750
  • 5% on £125,000- £250,000 = £6,250
  • 8% on £250,000 – £360,000 = £8,800

    Total = £18,800

You can check how much Stamp Duty you would pay via the Government online SDLT calculator.


SDLT exemptions

The higher rates of SDLT will not apply to purchases of non-residential or mixed-use properties, Motorhomes, caravans or houseboats or transactions where the consideration is less than £40,000. If you are purchasing in joint names and the other person doesn’t currently own a property, the higher rate of stamp duty will still apply.

If a previous main residence is sold within 3 years of paying the higher rates on a new main residence a refund is available.

Repayments need to be claimed within 3 months of the sale of the previous main residence, or within 1 year of the filing date of the return, whichever comes later. The refund is for the amount of SDLT paid above what would have been charged had the property not been an additional residential property.  This can be calculated using the online SDLT calculator which is also available on GOV.UK. A repayment can also be claimed by completing a SDLT repayment request form. The form can be found here.


If you would like any further information on Stamp Duty, please contact us at The Norfolk Agents on 0808 1689 134. Happy house buying 😊



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