New SDLT Rules: Explained

The Chancellor’s Autumn Statement saw Stamp Duty tax reformed with a new system coming into place that is set favour UK home buyers. Before December 4th 2014, Stamp Duty was charged as a single percentage of the property price. Now it is charged at different rates depending on the portion of the purchase price falls into each rate band.

How much will you have to pay?

You now ONLY pay the proportion of the purchase price that’s actually above the thresholds at the higher rate, and NOT the highest rate on the total amount.

For example, on a house costing £300,000:

You pay nothing below £125,000; 2% on between £125,000 and £250,000, and 5% on the value of the property above £250,000. So in total this means you’ll pay £5,000 (£0+£2,500+£2,500).

Purchase price of property Rate of SDLT (percentage of portion of purchase price)
£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%

Stamp Duty

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The value of pension and investments can fall as well as rise. You may get back less than you invested.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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