Stamp duty calculator: How much tax will I pay for new house?

Chancellor Rishi Sunak extended the stamp duty holiday in the Budget yesterday.

It means anyone buying a home worth up to £500,000 before the end of June will now not pay the tax, and could save up to £15,000, with a reduced discount available until the end of September. 

An estimated additional 300,000 property transactions in England will get through, saving buyers £1.75 billion in total.

Chancellor Rishi Sunak pictured ahead of the budget yesterday

Mr Sunak said: “I can announce today the £500,000 nil rate band will not end on 31 March, it will end on 30 June.

“Then, to smooth the transition back to normal, the nil rate band will be £250,000, double its standard level, until the end of September – and we will only return to the usual level of £125,000 from 1 October.”

How much you will save from not having to pay stamp duty depends on how much the house costs.

First-time buyers are already exempt from paying stamp duty on the first £300,000 of purchases for properties costing up to £500,000.

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That means the holiday will only help those buying a property worth more than £300,000. They will no longer have to pay the tax on the remaining £200,000 up to the threshold.

Any first-time buyers who purchase properties worth more than £500,000 will see bigger savings as they were not eligible for the £300,000 exemption.

How do the new and old rates of stamp duty compare and how much could you save if buying a home? 

The calculator below shows how much tax you would pay to move home until the 30 June 2021.

>>>>>>>>>>>>> Try the calculator here <<<<<<<<<<<<<<

What is stamp duty?

Stamp duty, also known as Stamp Duty Land Tax (SDLT), is a tax on property or land bought in England and Northern Ireland.

You pay the tax when you buy a freehold property, a new or existing leasehold property through a shared ownership scheme or are given land or property in exchange for payment, for example you take on a mortgage or buy a share in a house.

People in Scotland pay Land and Buildings Transaction Tax and buyers in Wales pay Land Transaction Tax if the sale was completed on or after 1 April 2018.

No stamp duty will continue to be paid below the first £500,000 of a property purchase until the end of June

The greatest benefit of the stamp duty holiday extension is to those who would have faced the biggest tax bills on homes costing £500,000 or more - they will save the full £15,000.

If they complete on a purchase after 30 June but before the end of September, they will save £5,000.  

How much could I save?

How much stamp duty you save depends on the property value and whether you’re a first time buyer or buying a second or holiday home.

It also depends on where you are buying in the UK as England and Northern Ireland rates are different to those than in Scotland and Wales.

In England and Northern Ireland, if the Treasury extends the holiday, the threshold stays at £500,000 for home buyers, movers, and first-time buyers. 

First-time buyers:

£100,000 property – No saving

£200,000 property – No saving

£300,000 property – No saving

£400,000 property – £5,000 saving

£500,000 property – £10,000 saving

Second or additional property owners:

£100,000 property – £3,000 saving

£200,000 property – £7,500 saving

£300,000 property – £14,000 saving

£400,000 property – £22,000 saving

£500,000 property – £30,000 saving

What about properties priced above the £500,000 threshold?

You pay five per cent if between £500,001 and £925,000

You pay ten per cent if it is between £925,001 and £1.5million

You pay 12 per cent on anything over £1.5million