Stamp duty calculator: how much will I save?

CHANCELLOR Kwasi Kwarteng has cut stamp duty in a bid to help shoppers save thousands of pounds.

The cut came into effect on the day the mini budget was announced (September 23, 2022).

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Stamp duty calculator – how much will I save?Credit: Getty Images – Getty

This will prevent 200,000 people from paying stamp duty.

Land Stamp Duty (SDLT) is a lump sum payment you must make when buying property above a certain threshold.

It applies in England and Northern Ireland, with separate property tax regimes in force in Scotland and Wales.

The ‘zero rate’ stamp duty bracket was doubled from £125,000 to £250,000.

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This means a typical family moving into a semi-detached property will save £2,500 on stamp duty, the government has said.

First-time buyers, who have already paid no stamp duty on the first £300,000 of a property’s price, will see the threshold raised to £425,000.

The value of property on which first-time buyers can claim relief has also been increased, from £500,000 to £625,000.

The exact amount of stamp duty you pay will also depend on the value of the property you are buying, as well as whether it is your primary or secondary residence.

Here we show you how to calculate your potential savings.

How much could I save on stamp duty?

How much you’ll save from stamp duty reduction depends on the cost of the house – but it could be thousands of pounds.

Here’s how much first-time buyers will save:

  • £100,000 – no savings
  • £200,000 – no savings
  • £300,000 – no savings
  • £400,000 – £5,000
  • £500,000 – £6,250

First-time buyers were already paying no stamp duty on the first £300,000 of a property’s price.

This means that looking at a property at this price or below will see no change.

But those looking to buy a £400,000 property will now pay no stamp duty and save £5,000.

First-time buyers looking to buy a £500,000 home will now save £6,250.

Here’s how much homeowners looking to buy a new property will save:

  • £100,000 – no savings
  • £200,000 – £1,500
  • £300,000 – £2,500
  • £400,000 – £2,500
  • £500,000 – £2,500

Homeowners looking to buy a new home should also benefit.

The government has doubled the stamp duty threshold to £250,000 for all property purchases.

This means someone looking to buy a property at this price will now pay no stamp duty, saving £1,500.

Someone looking to buy a property priced between £300,000 and £500,000 will save £2,500.

How do I calculate how much I will save?

To calculate how much you could save, you need to compare the amount of stamp duty you would have paid under the old system versus now.

The easiest way to do this is to use a calculator.

You can use the Financial advisory service tool to show how much you would normally pay, while this Gov.uk calculator has been updated to calculate the cost as of September 23, 2022.

The difference between the two is your savings.

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