How much is stamp duty and how to access the tax calculator
The cut, which could save some shoppers more than £10,000, is the biggest tax cut the UK has seen since 1972.
Kwarteng said the move would “support growth, build confidence and help families aspiring to own their own home.”
Our guide is here to help you navigate through the new stamp duty, how much you’ll have to pay and how to access a stamp duty calculator.
How much is stamp duty?
Stamp duty is a tax that is charged when you buy property in the UK, but you will only have to pay it if the price of that property reaches a certain threshold.
Those who buy residential property or land in England and Northern Ireland pay the Stamp Duty Property Tax (SDLT) levy.
In Scotland, it is called land and property transaction tax (LBTT) and land transaction tax (LTT) for Wales.
Under the new system, no stamp duty is paid on the first £250,000 of a property purchase.
Stamp duty is levied at 5% between £250,001 and £925,000, 10% between £925,001 and £1,500,000 and 12% on anything over £1.5 million.
First-time buyers pay no stamp duty below the £425,000 threshold, then at 5% from £425,001 to £625,000.
If buying a new residential property means you will own more than one property, you will often have to pay an additional 3% on top of the SDLT fee.
The tax is imposed on all real estate, freehold and leasehold, whether purchased outright or through a mortgage.
First-time buyers in London and the South East could potentially save up to £11,250, the government says.
How to access the tax calculator
You can determine the amount of tax you will have to pay via the SDLT Calculator on the government website once it has been updated to show the new thresholds. From today, September 26, the government site advises to check this orientation to calculate the stamp duty to be paid.
There are a few things you should know before using the calculator, for example, if the property is a first purchase or replacement, freehold or lease, is the transaction for residential or non-residential, the date of the transaction, whether the buyers are UK or non-UK residents, whether you are buying as an individual, couple, company or trust, and will the purchase be the only property you own.
Once all of your data has been entered, the calculator will provide a figure for the total SDLT due.
In England and Northern Ireland, you only have 14 days to pay your tax.