How Stamp Duty Is Calculated

Stamp Duty, or Stamp Duty Land Tax (SDLT) as it is formally known, is a tax that applies to property purchases in the UK. Please note that this guide pertains specifically to England & Northern Ireland; for information related to Wales & Scotland, it’s advisable to seek advice within those regions.

How Stamp Duty is Calculated:

The amount of Stamp Duty payable is determined by the property’s purchase price, considering the type of property and the buyer’s circumstances. For residential properties, the Stamp Duty rates are as follows:

0% on the first £125,000 of the purchase price.

2% on the portion between £125,001 and £250,000.

5% on the portion between £250,001 and £925,000.

10% on the portion between £925,001 and £1.5 million.

12% on the portion above £1.5 million.

Concealing or Hiding Assets:

Concealing or hiding assets during bankruptcy is illegal and has severe consequences. If individuals attempt to keep assets hidden from the court or creditors, they risk facing further legal actions, including extending the bankruptcy restrictions or even criminal prosecution for bankruptcy fraud.

Written in August 2023 by:

Sam Chester

Stamp Duty Rates for Additional Property Purchases or Second Homes

For additional property purchases or second homes, the Stamp Duty rate is higher and calculated as follows:

3% on the first £125,000 of the purchase price.

5% on the portion between £125,001 and £250,000.

8% on the portion between £250,001 and £925,000.

13% on the portion between £925,001 and £1.5 million.

15% on the portion above £1.5 million.

Discharge from Bankruptcy

After discharge, individuals aiming to secure a mortgage must demonstrate at least three years of financial stability and responsible credit management. Lenders may require evidence of consistent financial responsibility before considering a mortgage application. However, the majority of lenders available would want to demonstrate at least six years of financial stability.

No Idea When It Comes To Stamp Duty?

Not Sure Where To Start?

Curious Mind?

We’re like human search engines, but with a side of humour!

So ask away, and we’ll sprinkle some laughter into your answers! No silly questions, only hilarious responses allowed!

Attention Please!!!

The content within this article is as accurate as the date it was written. To ensure the most up to date information, you should consult with one of the experts that we work with as every lender and their polices are different and can be changed or amended without notice.

This website is for information only and does not constitute financial advice. Our mortgage advisers are all fully qualified to provide mortgage advice in accordance with the Financial Conduct Authority (FCA) regulations. We only exclusively operate with businesses that are authorised and regulated by the FCA. All advice offered will be unique to your individual circumstances.

Some Buy to Let mortgages are not regulated by the FCA. You should carefully consider securing other debts against your home. If you do not keep up your mortgage repayments, your home may be repossessed. Equity released from your home will also be secured against it.