Stamp Duty Rates UK Calculate Your SDLT

What are stamp duty rates UK in 2024?

Stamp duty is a tax you have to pay if you buy a property in the UK over a convinced price threshold. The rules revealed in our stamp duty rates UK are that no duty will be paid on the first £250,000 of property worth. 

While for first-time purchasers, no duty is payable on the first £425,000 of the property value. It’s worth noting that duty rules are set to change again in April 2025.

Stamp duty will I need to forfeit?

This depends on where are you buying, how much the property costs and your personal circumstances. Whether you are a first-time buyer, or if you are buying an additional property. 

When do I pay Stamp Duty?

You are to pay duty within 14 days of completing your belongings. Your conveyance solicitor usually organizes the transfer of the money on your behalf. You could accused penalties and interest if you don’t file your return and make your compensation within 14 days of conclusion. 

How much is stamp duty in the UK?

Stamp duty rates UK are from 0% to 16% of the property purchase price. The charges depend on the property price and whether it’s your first home, extra property, or you are not a resident. 

Purchase price of property Stamp duty rate Rate for additional properties 

Up to £250,000 0% 3%

£250,000 to  £950,000 5% 8%

£950,000 to £1.5 million 10% 13%

Over £1.5 million 12% 15%

Stamp Duty refund:

If you put up for sale or give away your previous major home within 3 years of buying your new home you can apply for a reimbursement of the higher SDLT rate part of your stamp duty bill. You can get a refund if:

• You otherwise your spouse still own any element of your previous home
• The top rates still apply to you for another cause

Property sold on or before 28 October 2018:

If you sold your main previous residence on 28 October 2018 or earlier, a refund must be claimed within whichever comes later out of:

• 3 months after the sale of the previous main residence
• 12 months from the filing date of the SDLT return involving the new dwelling

Properties sold on or after 29 October 2018:

If you sold your previous major dwelling on 29 October 2018 or later, compensation must be claimed within 12 months of either arriving afterwards out of the:

• Sale of main previous residence
• The filing date of the SDLT revisit linking to the new home

Exceptional circumstances:

You have to still be able to pertain for a reimbursement, if you purchased your new home on or after 1 January 2017 and were not capable of selling your earlier home within 3 years. To be able to get a refund, the stoppage in selling must be because of excellent conditions. These could be, but are not inadequate to:

• The collision of government-forced limitations preventing the sale
• A stroke is taken by a public influence foiling the sale

Stamp duty on commercial property:

If you buy a freehold commercial property for £275,000 the SDLT owed is calculated as follows:

• 0% on first £150,000 = £0
• 2% on the next £100,000 = £2000
• 5% on the final £25,000 = £1250
• Total SDLT = £3,250

Claiming back stamp duty:

If you have traded your belongings on or after October 29, 2018, if you have:

• 12 months of the satisfying from the date you sold your home to make your demand to the taxman
• Or within a year of the new residence’s stamp duty rates UK filing date, whichever is better

If sold before that filing date, you would have needed to:

• Make the claim within a year of the stamp duty being filed on the purchase
• Or within three months of finishing the sale of your first belongings 

Avoiding stamp duty a clever loophole exposed:

There are different loopholes, and systems homeowners are using to also avoid paying stamp duty or decrease how much they owe.

While you won’t necessarily be able to get out of paying stamp duty rates UK there are some loopholes which may help you reduce how much you pay. 

Do Muslims pay stamp duty?

Muslims are not exempt from stamp duty on UK property purchases. Fake news is arising on social media that Muslims in the UK are exempt from duty, a tax paid when buying property or land. Stamp duty relief rules for Sharia-compliant alternative mortgages stop the levy from being paid twice, but the duty is ultimately financed by the buyer.

Can you add stamp duty to the mortgage?

There is not a special type of arrangement that allows you to add this to your mortgage, but you can work around this by simply reducing the amount of deposit you down and using the money to pay duty instead. Let’s come across an example of how this could work.

Let’s say you are buying a £450,000 property, and you have £100,000 to put down as a deposit. This gives you a loan-to-value of 78% and means you don’t need to borrow £350,000. Because most residential mortgage lenders are happy with a loan to value between 75% to 80%, you could instead choose to borrow £360,000, pay £90,000 as a deposit and use the extra £10,000 to cover the duty. Your loan to value would still be acceptable to most lenders and you did owe the duty equivalent as additional borrowing on your mortgage.

Addition stamp duty rates UK to a mortgage comes down to conference affordability requirements around how you can borrow and having sufficient deposit left to meet the lenders’ worth requirements.

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