SDLT Calculator 2023

What Does SDLT (Stamp Duty) Mean?

Stamp Duty Land Tax (SDLT) is a tax applied when buying property in England and Northern Ireland. You can use our SDLT Calculator to work out how much you will be paying.

SDLT is assessed at varying rates, depending on the purchase price of the property. There are several stamp duty tax brackets, with the rate increasing progressively from lower to higher brackets.

Significant revisions to the stamp duty were enacted in December 2014. The former stamp duty system was often described as a "slab tax" where rates increased at each SDLT limit and were imposed on the entire property purchase cost.

However, since 2014, the stamp duty system has been made progressive, with rate increases applied within specific stamp duty limits instead of the total property purchase price.

The stamp duty system underwent additional alterations in November 2017 when a relief for first-time homebuyers was introduced.

On 8th July 2020, a temporary stamp duty holiday commenced and concluded on 30th June 2021.

A transition period for the stamp duty holiday extended from 1st July 2021 to 30th September 2021. During this period, the initial zero-rate limit was established at £250,000.

From 1st October 2021 to 23rd September 2022, stamp duty rates and limits returned to the conditions prior to the stamp duty holiday.

On 23rd September 2022, the initial zero-rate stamp duty limit was raised from £125,000 to £250,000.

When is Stamp Duty Due? - SDLT Calculator

Stamp duty is now required to be paid within 14 days after finalizing a property purchase. This 14-day period for submitting a stamp duty return has been in effect since March 2019, shortened from the previous 30 days.

In practice, this reduced timeframe shouldn't significantly impact individuals as the majority of SDLT returns are usually handled by a solicitor or conveyancer on behalf of their client.

Understanding the SDLT (Stamp Duty) Holiday

The stamp duty holiday was launched in July 2020 as a measure to mitigate the economic impacts of the Covid-19 pandemic. The stamp duty holiday was extended by three months as part of the 2021 Spring Budget and concluded on 30th June 2021. During this period, the zero rate threshold for regular purchases rose from £125,000 to £500,000, exempting most first-time buyer and home-mover transactions from any SDLT.

When the stamp duty holiday ceased on 30th June 2021, the initial zero rate threshold dropped from £500,000 to a temporary threshold of £250,000.

This £250,000 threshold stayed until 30th September 2021, providing stamp duty relief for transactions completed after the end of the SDLT holiday.

From October 2021, stamp duty thresholds returned to those prior to the initiation of the stamp duty holiday.

SDLT Calculator for First Time Buyers

First-time buyer relief is available for property purchases below certain thresholds. First-time buyers pay no stamp duty on property purchases below £425,000, with further relief available for transactions up to £625,000.

Buy to Let & Second Homes Stamp duty rates have seen an increase for anyone purchasing an additional property. Additional properties include buy to let investments and second homes. Since April 2016, a 3% surcharge has been imposed on top of the standard SDLT rate.

The higher stamp duty rates only apply to additional residential property. Land and other types of properties are not typically considered when determining ownership of additional property for stamp duty purposes.

Replacing a Main Residence

Higher rates of stamp duty should not apply when moving homes. Standard rates of stamp duty will apply for anyone replacing a main residence, even if they briefly own two properties.

If the previous home isn't sold immediately, stamp duty is calculated at the higher rate, and a refund can be claimed later.

A stamp duty refund can be claimed up to 12 months after selling a previous home as long as the old home is sold within 3 years of buying the new one. The 3-year time limit may be extended if the sale of the old home is delayed due to COVID-19 or other exceptional circumstances.

Stamp Duty for Non-UK Residents

An increase in stamp duty for non-UK residents was declared in the 2020 Budget.

Since April 2021, a person residing overseas might have to pay an additional 2% in stamp duty if they purchase a property in England or Northern Ireland. This increase means that for an additional property, the top SDLT rate could now be 17%.

The surcharge will apply to anyone who is a non-UK resident, including British expats based overseas. Someone not present in the UK for 183 days in the 12 month period leading up to buying property will have non-UK resident status.

The stamp duty surcharge could help cool off the London property market, where foreign investment is high.

The surcharge will help to control house price inflation and support UK residents aiming to move up the housing ladder.

The Government planned to use the extra stamp duty revenue to provide new homes for the homeless.

Stamp Duty Revenue

Stamp duty revenue has generally trended upwards over the last 40 years. Despite substantial stamp duty reforms in 2014, stamp duty receipts continued to increase.

There was a marked drop in stamp duty revenue for the year 2020 to 2021. SDLT Revenue for this period was affected by the Covid-19 pandemic and the subsequent implementation of the stamp duty holiday.

For the 2021 to 2022 financial year, SDLT generated approximately £14.1 billion, a 63% increase from the previous year. More information and statistics can be found on the UK Government website.

Despite research suggesting that stamp duty impacts the housing market, SDLT remains an important source of revenue for the Treasury.

Looking to sell your property? Get in touch with the At The Place sales team today.