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Stamp Duty calculator: Work out property tax in 2023

Learn how to use a stamp duty calculator and more

child creating his own Stamp duty calendar

In order to calculate your property tax in 2023, you could use a stamp duty calculator which is often available on various websites, including Rightmove and Zoopla.

Stamp duty rates and rules will change over time, so it’s essential that you use an up-to-date stamp duty calculator or consult the official government website for the most current information.

It’s always a good idea to double check the results and seek professional advice if you have any doubts or questions regarding your stamp duty liability.

In this article we will explore the different stamp duty calculators available, how much stamp duty is in 2023 and when you have to pay stamp duty.

How much is stamp duty in the UK 2023?

When buying a residential property or piece of land in England or Northern Ireland, you’ll have to pay stamp duty land tax (SDLT) if your purchase is over the threshold value of £250,000.

Stamp duty rates will remain at the same level until 31 March 2025 which was announced in September 2022.

Although you could use a stamp duty calculator to work out which band you fit into, here are the current rates:

Property valueSDLT rate
Up to £250,000Zero
£250,001 to £925,0005%
£925,001 to £1.5 million10%
£1.5 million plus12%
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There is an extra 3% higher rate of stamp duty land tax for purchases of additional dwellings like second homes and buy-to-let properties.

How much is stamp duty first time buyers?

There is a first time buyers stamp duty exemption where they pay 0% stamp duty on the value of a property under £425,000 and 5% stamp duty on the value of the property between £425,000 and £625,000.

Any property purchased with a value over £625,000 can not benefit from any first-time buyer relief and standard rates will apply on the full value of the property.

Property valueSDLT rate
Up to £425,000Zero
£425,001 to £625,0005%
£625,000 plusNo relief - standard rates apply

How much is stamp duty for second home buyers?

Property valueSDLT rate
£0 - £250,0003%
£250,001 - £925,0008%
£925,001 - £1.5 million13%
£1.5 million plus15%

How much is stamp duty for Buy to Let properties?

Property valueSDLT rateSDLT rate on further properties
£0 - £250,0000%3%
£250,001 - £925,0005%8%
£925,001 - £1.5 million10%13%
£1.5 million plus12%15%

If you already own a property and are buying an additional property as a buy to let property in England or northern Ireland, then you will need to pay stamp duty surcharge.

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How does a stamp duty calculator work?

Stamp duty calculators work on a very basic mathematical equation which places your purchase price into the correct SDLT band depending on whether you’re a first-time buyer, buying your second home, or buying your next home.

Depending on what your purchasing position is, you may be available to receive exemptions or discounts, like first-time buyers who are entitled to a lower rate of stamp duty.

If your situation is complex then you may want to consult with a tax advisor or a solicitor to ensure you are calculating your stamp duty accurately and taking advantage of any available exemptions.

Please note that stamp duty calculators are only suitable for England and Northern Ireland.

For Scotland you will need to use a Land and Buildings Transaction Tax calculator, and for Wales you will need a Land Transaction Tax calculator.

How can I reduce stamp duty?

You could reduce your stamp duty liability using a stamp duty calculator by considering the various strategies and exemptions surrounding SDLT.

First time buyers in the UK may qualify for reduced stamp duty rate on properties below £625,000. Using a stamp duty calculator would mean you could check if you meet this criteria on your property before you purchase.

If you buy a property with shared ownership in mind, you may be able to pay stamp duty only on the share of the property you’re purchasing – a stamp duty calculator will be able to help you calculate the tax on your share.

When do you pay stamp duty?

Potential buyers or investors should use a stamp duty calculator when initially searching for properties or comparing different properties. This will help assess the overall cost of purchasing each property, considering stamp duty as a significant expense.

Before making an offer on a property, it’s crucial to use stamp duty calculators to estimate the stamp duty costs accurately. This will ensure that buyers have a clear understanding of the financial commitment required for a property purchase and inform any negotiating strategies.

After your offer has been accepted, you should revisit the stamp duty calculator to verify the accuracy of your initial estimate and ensure you have sufficient funds to cover the stamp duty upon completion as well as the property price.

When you complete the purchase, you are legally required to submit a Stamp Duty Land Tax return to HM Revenue and Customs (HMRC) within 14 days. This return must include the exact stamp duty amount you owe and if you do not hand it within 2 weeks then you may face penalties and interest.

Looking for more stamp duty content?

  • What is stamp duty for first time buyers?
  • 3% stamp duty surcharge
    Stamp Duty Surcharge: 3% Charge on Second Homes
  • Avoiding Capital Gains Tax on property
  • Do You Pay Taxes When Selling Your House?
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