Old stamp duty calculator: How much stamp duty will you pay after March 31, 2021?
STAMP DUTY LAND TAX, often referred to as just stamp duty, is a tax paid by UK home buyers. How much stamp duty will you pay after March 31, 2021?
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Stamp duty is exclusive to England and Northern Ireland. Homebuyers in Scotland have to pay Land and Buildings Transaction Tax, while in Wales it’s the Land Transaction Tax for any purchases completed on or after April 1, 2018. Stamp duty applies on: freehold properties, new or existing leaseholds, shared ownership schemes and transferred land or property.
Chancellor Rishi Sunak unveiled a stamp duty cut in July in an effort to boost the housing market during the pandemic.
The Chancellor raised the threshold at which buyers have to start paying stamp duty with immediate effect.
The move from the Treasury means almost nine out of 10 transactions are no longer subject to stamp duty, according to Zoopla.
But since the stamp duty holiday is only expected to run until March 31, 2021, how much will the full rate be after?
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How much stamp duty will you pay after March 31, 2021?
The threshold is where stamp duty starts to apply.
If you buy a property which costs less than the threshold, you won’t need to pay any stamp duty anyway.
From April 1, 2021, the thresholds will be:
- £125,000 for residential properties
- £150,000 for non-residential properties and land
These thresholds are the same as they were before the cut was introduced in July.
Stamp duty is paid out in percentages of the overall property price.
For the purchase of a main residence, the stamp duty is as follows:
- Between £40,001 and £125,000 - zero
- Between £125,001 and £250,000 - two percent
- Between £250,001 and £925,000 - five percent
- Between £925,001 and £1.5million - 10 percent
- Over £1.5million - 12 percent
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For the purchase of additional property, the stamp duty is as follows:
- Between £40,001 and £125,000 - three percent
- Between £125,001 and £250,000 - five percent
- Between £250,001 and £925,000 - eight percent
- Between £925,0001 and £1.5million - 13 percent
- Over £1.5million - 15 percent
From April 1, 2021, first time buyers will be eligible for a discount for properties of up to £500,000.
To be eligible, you and anyone you’re buying with both need to be first time buyers.
At the discounted rate, you will pay nothing on a property up to £300,000.
Any land or property bought costing more than £500,000 will have to pay five percent in stamp duty.