How is Stamp Duty normally calculated?
Stamp Duty rates have been subject to quite a lot of change over the past few years since the pandemic started in 2020 so you’d be forgiven for not knowing what they were off the top of your head. That’s why we’re here with the facts and the handy SDLT calculator to take the hard work out of it for you.
Stamp Duty is calculated using a few different factors. Here's some examples:
- Whether you’re a first-time buyer.
- Whether the land or property is for residential, non-residential use or mixed.
For a comprehensive list, always check out the Gov.uk website for the most up to date Stamp Duty information.
If you’re looking for a buy-to-let Stamp Duty calculator or you’re searching ‘Stamp Duty calculator second home’ when planning to buy another property, then things might be a bit different in your circumstances as Stamp Duty also takes into account the following:
- Whether you already own a property.
- Whether you’re a UK resident.
Why do we pay Stamp Duty?
We pay Stamp Duty because it’s a Government tax. The Government charges different taxes in order to fund other areas the country needs. It was introduced in 2003 as a charge on ‘land transactions’, and applies to purchases of:
- both freehold and leasehold property.
- shared ownership property.
- residential and commercial property.
- land.
There you have our handy Stamp Duty Land Tax calculator. If you have any more questions about mortgages in general, how the process works or how to improve your credit score, for example, we have a whole host of informative articles over in our mortgage guides.
