KIS Bridging Loans
 
Presented by KIS Finance
 
Step 1. Select Property Location >>
Step 2. Select Property Type >>
Is the property let out with an annual rent that is more than £1,000?
 
 
Step 3. Purchase Price
£
Breakdown
£ Band A - 0%
£ Band B - 2%
£ Band C - 5%
£ Band D - 10%
£ Band E - 12%
£ BTL Surcharge - 3%
£ Total Stamp Duty
£ Increase on Purchase
£ Overall Purchase Cost
Price Bands
Band A - Up to £125k
Band B - Above £125k to £250k
Band C - Above £250k to £925k
Band D - Above £925k to 1.5million
Band E - Above 1.5million+
 

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Stamp Duty Calculator

How to use our stamp duty calculator

Simply follow the 3 steps shown on the calculator:

  1. Select the location of the property that you wish to purchase

    There are 2 choices, England/Wales/Northern Ireland or Scotland. This is required because Scotland has abolished Stamp Duty Land Tax (SDLT) and replaced it with Scottish Land and Buildings Transaction Tax (LBTT), which is similar but has slightly different bandings.

  2. Select the property type, you have 3 options

    Residential - Please select this if you are buying the property to live in yourself, and you are a first time buyer or would have sold your previous home at the time of completion.

    Additional Property/Buy to Let - Please select this option if you already own one or more residential properties and at the time of completion you will still do so. This allows for the 3% stamp duty surcharge. For more information please see ‘Additional property’ below.

    Commercial - This option calculates stamp duty based on the commercial price bands.

  3. Enter the purchase price and click the calculate button

    The stamp duty calculator will display:

    1. The amount of stamp duty that will be charged in £s
    2. The amount of stamp duty as a percentage
    3. The overall purchase cost = Purchase Price + Stamp Duty

What is stamp duty?

Stamp Duty Land Tax is a lump sum tax charged on property and land purchased in the UK. The amount of tax payable depends on the purchase price of the property and whether it is for residential or for non residential use. The way in which the amount of Stamp Duty payable is calculated for residential property was reformed in December 2014.

Stamp Duty Land Tax (SDLT) - England / Wales / N.Ireland

Residential Stamp Duty Banding

One and only home

The table below shows how much tax you would be required to pay if you were purchasing your only property to live in:

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 +

Additional property

If you are buying an additional residential property, or you are buying a property with a partner who already owns a property, you will have to pay a stamp duty surcharge of 3%.

This applies if the property is a buy to let investment, a holiday home, or just another property you have if you work away from the family home.

Failure to disclose that you already own a property can result in a large fine and would be viewed as fraud.

The 3% surcharge is not charged for on properties where the purchase price is below £40,000.

Stamp Duty Charges for Residential Property - England, Wales and Northern Ireland

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%

What happens with Stamp Duty if I'm buying a new home and have not sold my current one?

If you buy a property to move into before selling your existing home for any reason, the surcharge will be payable, but you can apply for a refund if you sell the first home within 3 years.

Exception - If you wish to buy another property and are going through divorce proceedings, you will be exempt from the surcharge, so you can go ahead with a new purchase without incurring a surcharge before the divorce is finalised.

Stamp Duty Land Tax on non-residential and mixed use property

Stamp Duty Land Tax is calculated for transactions involving non-residential property and also for land purchases in the same way as for residential properties, but using different bandings.

  • Shops
  • Offices
  • Agricultural land
  • Forests
  • Land and other property which will not be used as a dwelling
  • When 6 or more properties are purchased in a single transaction

This also applies to mixed use property where it is used both as a dwelling and for non-residential purposes, for example a pub with living accommodation or a shop with its own flat. The amount of stamp duty payable applies to that portion of the sale price:

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

Land and Buildings Transaction Tax (LBTT) - Scotland

Stamp Duty has been abolished in Scotland and replaced with a Land and Buildings Transaction Tax (LBTT) which is very similar. The main difference is that the bandings are slightly different.

Residential Land and Buildings Transaction Tax (LBTT)

One and only home - Scotland


Purchase price Stamp Duty rate Tax to pay
Up to £145,000 0% £0
£145,000 - £250,000 2% £0 - £2,100
£250,000 - £325,000 5% £2,100 - £5,850
£325,000 - £750,000 10% £5,850 - £48,350
£750,000 + 12% £48,350 +

Additional Property - Scotland

This is applied in the same way as for additional residential properties in England, Wales and Northern Ireland.

For second homes, buy to let properties, holiday homes and if buying a property with a partner who already owns a residential property, a 3% surcharge is added to properties with a purchase price of £40,000 and above.

Purchase price Single 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 on non-residential and mixed use property - Scotland

This is calculated in the same way as in England, Wales and Northern Ireland, but the bandings and the LBTT % rate is different.

Purchase price Stamp Duty rate
Up to £150,000 0%
£150,000-£350,000 3%
£350,000+ 4.5%

A brief history of Stamp Duty

Stamp Duty originally began on 28th June 1694 and was introduced to help cover the costs of the war with France. The charge was initially applied to paper documentation and has also covered other items such as playing cards, cheques and newspapers. It was so successful that stamp duty has continued to the present day through various different Stamp Acts.

The Finance Act 2003 introduced Stamp Duty Land Tax which is a lump sum tax charged on property and land transactions in the UK.

Until December 2014, a certain percentage of the full purchase price would be payable, depending on which bracket the purchase price fell into:

Previous residential Stamp Duty banding


Purchase price Percentage Tax to pay
Up to £125,000 0% £0
£125,001-£250,000 1% £1,250-£2,500
£250,001-£500,000 3% £7,500-£15,000
£500,001-£1,000,000 4% £20,000-£40,000
£1,000,001-£2,000,000 5% £50,000-£100,000
£2,000,001 and over 7% £140,000+

The steep increase in the amount of tax payable over each boundary has caused the prices of properties valued at the higher end of each band to stagnate. For example, a property worth £270,000 would have been much more likely to sell for £250,000 as the additional £20,000 would have cost the buyer an extra £5,600 in stamp duty (3% of £270,000 = £8,100 and 1% of £250,000 =£2,500)

The reformed Stamp Duty is calculated in a similar way to income tax. The percentages payable have changed and still increase with each higher purchase price bracket, however the tax will no longer be applied to the full purchase price. Instead, buyers will pay the tax for each band.

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