As part of our ongoing effort to improve our services Foster Lewis and Co are pleased to make an online stamp duty calculator available on the website. The calculator is very easy to use – simply type in the purchase price of your property, click calculate and it will tell you how you have to pay.
What is stamp duty?
Stamp duty land tax (or Land and Buildings Transaction Tax in Scotland) is a lump-sum tax that anyone buying a property or land costing more than a set amount has to pay. The rate you’ll pay the tax at varies based on the price of the property and the type (we’ll focus on residential buildings, rather than commercial).
Changes to were announced in the Chancellor’s Autumn Statement in December 2014. Under the old system you would have paid 1% on a property between £125,000 and £250,000, between £250,000 and £500,000 you’d pay 3%. So for a house costing £300,000 a 3% rate applies so you would pay £9,000 in stamp duty.
Under the new system on a property selling for £300,000:
You pay nothing below £125,000, which is £0
You pay 2% on between £125,000 and £250,000, which is £2,500
You pay 5% on the value of the property above £250,000, which is £2,500
So in total this means for a property selling for £300,000 you pay £5,000 (£0+£2,500+£2,500).
While the tax is now more progressive, the calculation is more complicated. Click this link: Online stamp duty calculator.