Commercial Property Stamp Duty Calculator
Are you buying property or land in England or Northern Ireland for over £125,000? If so, you must pay Stamp Duty Land Tax based on your purchase price. At North East Property Investment, our commercial property Stamp Duty calculator simplifies your calculations and clarifies how much you owe and how to pay. Use the Stamp Duty Calculator below to access the latest interest rates:
What is Stamp Duty?
Most people buying or selling property in England have heard of Stamp Duty but often lack clarity on what it entails. Stamp Duty is a one-time tax on properties purchased for over £125,000. Rates vary based on the property price, so you pay different amounts on various portions of the cost. This tax applies to all forms of property, including residential and commercial, as well as freehold and leasehold. If you’re purchasing outside England or Northern Ireland, different taxes apply:
History of Stamp Duty Levy
In 2014, significant changes transformed Stamp Duty from a ‘slab tax’ to a progressive system where rates increase between specific thresholds. 2017 brought First-Time Buyer relief, while a temporary stamp duty holiday occurred from July 2020 to June 2021, setting the initial zero-rate threshold at £250,000. As of October 1, 2021, rates reverted to pre-holiday levels.
Stamp Duty Rates
Residential or Home Mover Stamp Duty Rates
If you buy a property you intend to live in (and you’ve owned property before), here are the current rates:
| Property Price Portion | Tax Rate |
|---|---|
| £0 – £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5 million | 10% |
| £1.5 million + | 12% |
First-Time Buyer Stamp Duty Rates
As of November 2017, first-time buyers can benefit from the following exemptions:
– No tax for homes under £300,000.
– For properties priced between £300,001 and £500,000, you pay tax starting at £300,001.
– Properties over £500,000 are taxed at standard rates.
| Property Price Portion | Tax Rate | Property Price Portion | Tax Rate |
|---|---|---|---|
| £0 – £300,000 | 0% | £0 – £125,000 | 0% |
| £300,001 – £500,000 | 5% | £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% | ||
| £925,001 – £1.5 million | 10% | ||
| £1.5 million + | 12% |
Buy-to-Let Stamp Duty Rates
Buy-to-let rates also apply to second homes and vacation properties. Unless you’re a first-time buyer or purchasing for under £40,000, you’ll face the following rates:
| Property Price Portion | Tax Rate |
|---|---|
| £0 – £125,000 | 3% |
| £125,001 – £250,000 | 5% |
| £250,001 – £925,000 | 8% |
| £925,001 – £1.5 million | 13% |
| £1.5 million + | 15% |
Note: These rates are from 2019 and may change with the budget release from the Chancellor on 11 March 2020.
Stamp Duty Holiday
To stimulate the property market, Chancellor Rishi Sunak announced a temporary increase in the stamp duty threshold to £500,000, effective until March 31, 2021. This means buyers completing purchases at or below this price will not pay any tax during this period.
Adjusted Stamp Duty Rates July 2020 – March 31, 2021
These rates apply to residential properties:
| Property Value | Existing Rates | Holiday Rates |
| £100,000 | 0 | 0 |
| £200,000 | £1,500 | 0 |
| £300,000 | £5,000 | 0 |
| £400,000 | £10,000 | 0 |
| £500,000 | £15,000 | 0 |
| £600,000 | £20,000 | £5,000 |
| £700,000 | £25,000 | £10,000 |
| £800,000 | £30,000 | £15,000 |
| £900,000 | £35,000 | £20,000 |
| £1 million | £43,750 | £28,750 |
Also, here are the rates for additional or buy-to-let properties:
| Property Purchase Price | New Stamp Duty Rates |
| £0 – £500,000 | 3% |
| £501,000 – £925,000 | 8% |
| £925,001 – £1.5 million | 13% |
| £1.5 million + | 15% |
The Stamp Duty holiday applies to buy-to-let and second-home purchases as well, but investors still face a 3% surcharge at all purchase levels, including those below £500,000.
When and How to Pay Stamp Duty?
Since March 2019, buyers must pay Stamp Duty within 14 days of completion. Failing to do so can result in fines. Typically, your solicitor or conveyancer handles the payment and filing; however, you can also submit the return yourself. Note that even for properties under £125,000, a return must still be submitted to HMRC, even if no payment is due. For filing and payment details, click here.
Are there any Stamp Duty Exemptions?
Exemption regulations can be complex, covering over 40 potential exemptions. We strongly recommend seeking expert advice rather than trying to navigate these rules alone.
Investment Property and Development
In 2011, Multiple Dwelling Relief aimed to boost property investment and development. This allows a calculation based on the average value of all dwellings involved in a transaction, providing relief on each rather than applying a single amount to the total. For this relief, HMRC requires properties to be in habitable condition with certain amenities and separated utility connections.
What Can North East Property Investment Offer You?
At North East Property Investment, we specialize in the buy-to-let market in the North East. With over 15 years of property management expertise, we offer in-depth services and guidance tailored to your needs.
Contact Us
11 Riverside Studios
Amethyst Rd
Newcastle Upon Tyne
Tyne and Wear
NE4 7YL
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