What is Stamp Duty?

When purchasing a property, one of the costs that need to be paid at the time of purchase is Stamp Duty (or Land and Buildings Transaction Tax). It is a lump sum tax that is payable on tax and land in the UK and the equivalent in Scotland is called Land and Buildings Transaction Tax.

The amount of tax that needs to be paid depends on the purchase price of the property and whether it is a house purchase for you to live in (residential) or whether it is an additional property, or going to be used as a Buy To Let (BTL) or for Commercial purposes.

Using the Kis Finance online Stamp Duty Calculator – 3 easy steps

This calculator is quick and simple to use and will tell you how much Stamp Duty will need to be paid on any property in the UK for both residential and commercial uses. To use the calculator, visit: https://www.kisbridgingloans.co.uk/stamp-duty-calculator/

All you need to do is input 3 pieces of information:

Step 1 – Select whether the property is in England/Wales/Northern Ireland or Scotland

Step 2 – Select the property type: Residential, Additional Property/BTL or Commercial

Step 3 – Input the purchase price and press ‘Calculate’.

The amount of stamp duty that is required to be paid is then displayed on screen, along with the different bandings that help illustrate how the figure is reached.

The calculator is fully responsive and designed to work on a mobile phone, tablet or desktop computer.

Stamp Duty on residential properties in England, Wales and N.Ireland

If the property being purchased is for you to live in yourself and it is your first property purchase or your existing home will already be sold prior to or at the same time as completion of this property purchase, you will pay Stamp Duty as per the rates below:

Purchase price Stamp Duty rate Tax to pay
Up to £125,000 0% £0
£125,001 – £250,000 2% £0 – £2,500
£250,000 – £925,000 5% £2,500 – £36,250
£925,001 – £1,500,000 10% £36,250 – £93,750
£1,500,001 + 12% £93,750 +

Stamp Duty on additional properties in England, Wales and N.Ireland

If you are purchasing an additional residential property (perhaps one closer to work if you work a long way from the family home, or a holiday home by the sea for example) or you are purchasing your only property with a partner who already owns a property – you will have to pay a higher rate of Stamp Duty (surcharge of 3%). Here is a table to compare the difference between Stamp Duty charged on residential properties (your one and only property) and additional properties:

Purchase price Single Property Additional Property
Up to £125,000 0% 3%
£125,001 – £250,000 2% 5%
£250,000 – £925,000 5% 8%
£925,001 – £1,500,000 10% 13%
£1,500,001 + 12% 15%

If you are purchasing a new home but cannot yet sell your existing home for whatever reason – you will need to pay the higher amount, but once you sell your existing home you can apply for a refund of the surcharge (if it is sold within 3 years of the new property purchase).

There is an exception to this rule if you are going through a divorce and wish to buy another property before the divorce is finalised.

Stamp Duty Land Tax on commercial/ non-residential Property

Stamp duty is calculated in the same way but using different purchase price bandings. This applies to shops, offices, agricultural land, forests, land and other property that will not be used as a dwelling and when 6 or more properties are purchased at the same time in a single transaction.

For mixed use property where only part of it will be used as a dwelling (a shop with a flat, for example) the amount of tax payable applies to that portion of the purchase price.

Purchase price Stamp Duty rate
Up to £150,000 0%
£150,000-£250,000 2%
£250,000+ 5%

Land and Buildings Transaction Tax (Scotland)

Land and Buildings Transaction Tax (LBTT) for residential properties is very similar to Stamp Duty, the main difference is that the price bandings are different. The 3% surcharge for buying additional property still applies and is the same as the rules for Stamp Duty.

Purchase price Single Residential

Property

Additional Property
(Only for property £40,000 and above)
Up to £145,000 0% 3%
£145,001 – £250,000 2% 5%
£250,000 – £325,000 5% 8%
£325,000 – £750,000 10% 13%
£750,001 + 12% 15%

LBTT non-residential and mixed use property (Scotland)

This is the same as Stamp Duty, with different purchase price bandings and tax rates:

Purchase price Stamp Duty rate
Up to £150,000 0%
£150,000-£350,000 3%
£350,000+ 4.5%
Featured image: Images Money Monopoly house on £1 coins, via Flickr, CC License.

 

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