The ins and outs of Stamp Duty

The ins and outs of Stamp Duty

The new Stamp Duty Calculator from Paul Alexander Mortgage Consultants is here to help you make sense of all things Stamp Duty.

But what is Stamp Duty and does it affect you?

You must pay Stamp Duty or SDLT, if you buy a property over a certain price. This is charged on all purchases of houses, flats and other land and buildings. 

The Stamp Duty rate depends on:
  • The purchase price of the property
  • Whether the property is residential, Non-residential or Mixed-use
  • SDLT may also be due if you lease a property

What are the Residential rates?


To find out how much you would have to pay Click Here

Stamp Duty is charged at different rates depending on the portion of the purchase price that falls into each rate band.

Residential rates for Freehold sales and transfers which can also be used to work out the stamp duty for the purchase price of a lease (the lease premium) are as follows:

  1. Residential Properties
    • £0 - £125,000 - 0%
    • £125,001 - £250,000 - 2%
    • £250,001 - £925,000 - 5%
    • £925,001 - £1.5 million - 10%
    • Over £1.5 million - 12%
  2. Residential Leases
    • If your residential lease is for more than £125,000, you’ll pay 1% SDLT on the amount above the £125,000 threshold.

Non-Residential and mixed-use properties

Purchase price/lease premium or transfer value rate of SDLT
  • Up to £150,000 - annual rent is less than £1,000 - 0%
  • Up to £150,000 - annual rent is £1,000 or more - 1%
  • Over £150,000 to £250,000 - 1%
  • Over £250,000 to £500,000 - 3%
  • Over £500,000 - 4%

Watch our interview with the BBC on Stamp Duty by clicking here.



Hot off the press! 

From April 2016 Buy-to-let landlords and second home owners will have to pay more in Stamp Duty. For those in England and Wales this will mean a 3% surcharge within each Stamp Duty band. 
  • Property purchase of £40,000 to £125,000 – Stamp Duty will be levied at 3% (currently 0%)
  • Up to £250,000 – 5% (currently 2%)
  • Up to £925,000 – 8% (currently 5%)
  • Up to £1.5m – 13% (currently 10%)
  • Over £1.5m – 15% (currently 12%)

Plan ahead


With these changes to the Stamp Duty laws in the distance, planning is key:

Orchards of London

Paul Alexander Mortgage Broker - purchases

Paul Alexander Mortgage Consultant - remortgages

Paul Alexander Mortgage Broker - buy to let

Paul Alexander Mortgage Consultant - commercial

Paul Alexander Mortgage Broker - mortgage calculator

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