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 of tax you’ll pay varies depending on the price and type of property (we’ll focus on residential buildings, rather than commercial).

Changes to stamp duty were announced in the Chancellor’s Autumn Statement in 2014. Stamp duty has been changed – the slab system (where you’d pay a single rate on the ENTIRE property price) has been swept away, and in its place is a more progressive system.

Under the new system, you’ll only pay the rate for the proportion of the property that’s at that rate.

Property Value

Residential Standard Rate

Buy-to-let/ Second Home Rate

Up to £125,000




Over £1.5m











Property Value

Commercial Standard Rate

Up to £150,000


Over £250,000




How do I work out how much Stamp Duty I will need to pay?

As the price you pay for a new property increases, so do the rates of stamp duty. You pay a percentage of the cost, and the rate payable leaps up at a set of thresholds – but, you only pay the proportion of the purchase price that’s actually above the thresholds at the higher rate. The Chancellor has now announced an incremental 3% stamp duty surcharge on Buy-To-Let property purchases over residential purchases. This will be introduced from April 2016.

An example

Property Value £250,000

You pay nothing below £125,000, which is £0

You pay 2% on the value between £125,000 and £250,000, which is £2,500.

Total £2,500


Same example as a buy-to let

Property value £250,000

You pay 3% on the value between £0 and £125,000, which is £3,750

You pay 5% on the value between £125,000 and £250,000, which is £6,250

Total £10,000

Stamp Duty Calculator
Stamp Duty Calculator
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